Indiana License Law and Commission Rules
The regulator
Indiana real estate licensing is administered by the Indiana Real Estate Commission within the Professional Licensing Agency, under IC 25-34.1 and the Commission's rules in 876 IAC. The Commission adopts rules, approves pre-licensing schools and instructors, investigates complaints, and imposes discipline.
Getting and keeping a license
Applicants must be at least 18, hold a high school diploma or equivalency, complete the required pre-license hours at an approved school, pass the licensing exam, submit fingerprints and background information, and demonstrate honesty, truthfulness, and integrity - proof of trustworthiness. A salesperson must work under a principal broker who supervises the office and its affiliated licensees and is responsible for records. Licenses renew on a biennial cycle with continuing education; confirm the current hour and topic requirements with the Commission before relying on any number.
Conduct rules
Written agency disclosure, with a written agency agreement before representation; limited agency only with written informed consent of both parties; trust accounts kept separate from operating funds, with no commingling or conversion; prompt accounting for funds; advertising that names the brokerage; no compensation paid to unlicensed persons; no false promises, misrepresentation, or undisclosed personal interest; and no giving legal advice beyond completing approved form contracts.
Discipline and traps
Grounds include fraud, misrepresentation, incompetence, breach of fiduciary duty, commingling, obtaining a license by false information, and conviction of certain crimes. Sanctions range from reprimand and probation to suspension or revocation, plus civil penalties. Traps: thinking a salesperson may open an independent office; assuming you need a license to sell your own property (you do not); believing the Commission sets commission rates (it does not).
Rule of thumb
The principal broker answers for the affiliated licensees and controls the trust funds.