Need of a License: A real estate salesperson must be licensed by the state of Indiana to represent clients in the sale or purchase of real estate that is located in Indiana.
Who Grants a License: Licenses are granted by the Indiana Professional Licensing Agency (“IPLA”).
Qualifications to receive a License: A candidate must complete 54 clock hours of study at an IPLA-approved real estate school (search schools here), pass a school-administered final exam, and pass a state exam. All candidates must submit a full set of fingerprints, prove legal presence and pass a background check. All candidates must be at least 18 years of age. For more information about qualifications, see the Applications and Instructions page of the IPLA website.
Applying for the Exams: Candidates must pass the state exam within one year of the completion of the pre-license curriculum. Candidates should apply to take the state exam through the PSI website scheduling page. Applicants must know the completion date of their pre-licensure curriculum, and the IPLA approval number of their pre-licensure school. For more information, see the State of Indiana Real Estate Candidate Bulletin.
Test Content: The Indiana state real estate licensing exam is comprised of two separate tests, the national test and the state-specific test. Five questions on the national test and up to ten questions on the state-specific test are considered "experimental" questions and are not scored. Both portions are comprised of multiple choice questions with four answer choices provided for each question. Test takers are allotted 4 hours to complete both portions of the exam. A scaled score of at least 75 is required to pass. Candidates who pass only one portion of the exam must pass the other portion (and apply for licensure) within one year of passing the first portion. The exam is presented in a computer-based format, but accommodations for paper-based tests and/or oral testing can be provided with special arrangements.
The national test consists of 85 questions (80 are scored, 5 are not scored) and tests the candidate's knowledge of general real estate concepts, including the following subject areas:
Real property characteristics, definitions, ownership, restrictions, and transfer
Property valuation and appraisal
Contracts and relationships with buyers and sellers
Property conditions and disclosures
Federal laws governing real estate activities
Financing the transaction and settlement
Leases, rents, and property management
Brokerage operations
The state-specific test consists of 55 to 60 questions (50 are scored, up to ten are not scored) and tests the candidate's knowledge of the state-specific concepts, including the following subject areas:
The Indiana Real Estate Commission
Licensing
Statutory and regulatory requirements
How to Apply for the License: The license application is issued by the testing company upon passing both portions of the licensing exam. The list of documents required for licensure is subject to change, but is on the application. Candidates must, within one year of passing either portion of the state exam, send all required documents to the IPLA offices at the following address:
Indiana Real Estate Commission, Indiana Professional Licensing Agency
402 W. Washington St., Room W072
Indianapolis, IN 46204
In the interest of candidate preparation, the following documents will likely be on the list of required documents: (1) completed application and application fee; (2) original Indiana state real estate licensing exam score report(s); (3) proof of legal presence in the U.S.; (4) certificate issued by an IPLA-approved school for completion of the 54-hour salesperson pre-licensure curriculum; (5) IPLA-approved fingerprint card; and (6) proof of a criminal background check.
Fees: The IPLA charges a license application fee.
Who administers the test: IPLA and Pearson VUE.
License Renewal Requirements: An Indiana real estate licensee must take 16 credit hours of continuing education (either online or in the classroom) from an IPLA-approved provider every two years. Further information is provided on the IPLA website, here.
Applicable Regulations: Real estate licensees in Indiana are regulated under Title 25, Article 34, and the Indiana Administrative Code, Title 876, Articles 1 thru 4.