Are you interested in kicking off your real estate career in the state of Indiana? Have you heard about real estate pre-licensing, but you aren’t sure what that is?
If you are an aspiring real estate agent looking for more information on what the Indiana real estate pre-licensing courses are, then you came to the right place!
It is essential to take this course to meet your state requirement and be well equipped with the knowledge you need to be the best real estate agent. In this brief article, we will go over the pre-licensing requirement you must meet before you can sit for your licensing exam and who you can contact for more information.
Indiana Real Estate Pre-requisites
Before you can even consider starting your real estate career, there are a few requirements that you must meet. You need to at least be 18 years old with a high school diploma. If you don’t have a high school diploma, you can apply with a GED.
You also will need to be a United States citizen with a valid social security number. If you have a criminal record, you must disclose that information when you submit your application.
The Indiana Real Estate Commission board, also known as IREC, will review your criminal history. They have an ultimate say if your application will receive an approval or a denial.
The IREC may ask you to appear before them to further discuss your application before issuing a denial. If the board calls you to appear before them to discuss your history, they may ask you to bring supplemental information about the criminal events on your record. You can receive these copies from the law enforcement agency that processed your records.
Step One: Complete Your Pre-licensing Courses
Once you meet the minimum legal requirements to become a real estate agent in Indiana, you will need to take the required real estate pre-licensing courses. In the state of Indiana, you will need to complete 90 hours of pre-licensing courses. You have the option to take online courses, or you can go to an in-person real estate school.
The material covered in your pre-licensing course:
- Real estate brokerage operation
- Financing
- Real estate loan underwriting
- Closing real estate transactions
- Real estate contracts
- Indiana real estate law
- Commission rules
- Property management
- Earnest money and trust accounts
It is imperative that you study the material in these courses because they will help you pass your exam. The average cost for pre-licensing courses ranges between $300 to $600, depending on the school that you choose.
Some pre-licensing courses only provide you with the bare minimum coursework to fulfill the state requirement. Other courses offer you additional resources and mock exams to ensure that you pass your Indiana real estate licensing exam.
Step Two: Pass Your Course Final Exam
Once you complete all 90 hours of your real estate pre-licensing course, you can move on to take your final exam. If you choose to go to an in-person real estate school, you will take your exam in person.
If your pre-licensing course provider is strictly online, you will take an online proctored exam. You must pass your exam with a score of 75% or more. You typically have two chances to take the course final.
If you fail the second time, you will need to retake the entire course. Once you pass this exam, you will receive a Certificate of Completion, which you will need to save when you go to apply for your state license.
Step Three: Take Your Indiana State Licensing Exam
If you thoroughly studied and passed your Indiana pre-licensing course, you should be well prepared enough to take your state exam. There are two different portions of the exam. One section has state-specific questions, and the other has nationally tested questions.
The test contains 125 questions. Seventy-five of those questions are national-focused questions, while the other 50 are state-specific. You have four hours to complete the exam. Just like your pre-licensing course exam, you will also have to pass with a score of 75% or higher to earn your real estate license.
What to Bring to the Exam
On your exam day, you will need to bring two valid forms of ID. You can bring a state ID, driver’s license, or a passport for one form of ID. The second form must bear your preprinted legal name and your signature. For your second form of ID, you can bring your social security card and a debit card.
Other items to bring with you:
- A standard calculator
- Original proof of your pre-licensing certificate of completion
The PSI provides and proctors the Indiana real estate exam. If you are looking to schedule your test, you will need to visit their website. The fee for the licensing exam is $57.
Step Four: Find a Managing Broker
Before you can start your real estate career, you will need a managing broker to sponsor you. Once you find a managing broker, they will register you under their company. Without this registration, you will receive an inactive license in the mail.
Before you just pick any managing broker, you should do your research on them and their company. It is best to see what benefits they offer to their real estate agents in Indiana.
You will also want to know if they do commission splits. Picking a broker so that you can have an active license is not a good idea. Make sure that you choose a managing broker that matches your same values and has a good reputation.
Step Five: Apply for Your License
Once you have completed all of the previous steps, you are ready to apply for your real estate license. Keep in mind that you only have 12 months after passing your licensing exam to send your application to the Indiana real estate commission board. You have the option to either send in your application through the mail or through their online portal.
Regardless of which avenue you choose for submitting your application, you will still need to send in the same paperwork.
What you will need to have available:
- Debit card, credit card, or a money order
- Pre-licensing certificate of completion
- Broker company information
- License exam report sheet
- Positive response document (if applicable)
The positive response document is only applicable if you answered “yes” to having a criminal history. If you answered yes, you would need to include any court details and documents related to the conviction. You will also need to explain the conviction in full.
When filling in the information for your managing broker, you will need to provide all of their applicable information. Make sure that you have the broker company’s name and license numbers. If you do not include this information, you will receive an inactive and unassigned license.
Indiana Real Estate Background Check
After you submit all the information for your application to the Indiana Real Estate Commission, you will need to complete a background check. The IREC board will email you about the steps you need to take to complete your fingerprints.
They will most likely send you to IdenToGo, which is their preferred company. IdenToGo will take your fingerprints electronically and will send them to the board on your behalf.
Other locations within the state have the capacity to handle your electronic fingerprints. The cost for your fingerprints varies. You can expect to pay between $30 to $50 depending on the location you choose.
What Is Errors and Omissions Insurance?
Errors and Omissions insurance, also known as E&O insurance, is a professional liability insurance policy that provides your business protection if someone claims you acted in negligence. For example, if a customer claims that you made a mistake during the home buying process and that mistake caused them financial harm, they may try to sue you.
Even if a client makes a false claim against you, the cost of legal fees can quickly add up, taking money away from your business. It also helps to reach out to your managing broker to see if they require you to carry E&O insurance while you work under them.
Indiana Real Estate Pre-Licensing
Now that you know what it takes to be a real estate agent in Indiana, it is time to get started! Taking your real estate pre-licensing courses helps you meet the state requirement for licensing and helps prepare you for your future in real estate.
Contact us if you are ready to start knocking out those 90 pre-licensing course credit hours now! Here at My Real Estate Practice, we have all the tools you need to pass your licensing exam successfully.
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