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Will an Out of State Real Estate License Work in Indiana?

Are you moving to Indiana with an out-of-state real estate license? Without taking and passing the Indiana Real Estate License Exam, you won’t be able to practice real estate within the state. The only exception to this rule is if you are coming from the state of Illinois. This is because, unlike other states, the state of Indiana only provides reciprocity to Illinois for real estate licenses. Agents coming from Illinois only need to complete a broker application form and submit their official license verification. You will also need an Indiana sponsoring broker in order to receive an active license.

If you’re not from Illinois and are wondering how to go about getting a valid Indiana Real Estate License, you’ve come to the right place. Read on to learn more about how to get a valid license in the state of Indiana.

Indiana License Portability and Reciprocity

broker pre-licensingLicense reciprocity refers to the acceptance of an out-of-state license as a valid license in another state. Some states have reciprocity agreements that enable the portability of one license to another with very little hassle. Other states do not have such agreements. One of the biggest reasons why many real estate licenses are not portable is that the real estate industry remains highly state-based. Different laws and regulations are in force in various jurisdictions, meaning that a real estate agent adept at managing Florida real estate may not know all the ins and outs of Indiana state law. It is the job of the Indiana Real Estate Commission to ensure that every single real estate agent passes the requirements to successfully broker real estate within Indiana.

Outside of Illinois, Indiana does not offer license reciprocity. This means that your out-of-state license will not be valid in Indiana. This is vital information, as selling real estate in Indiana without the correct license can have serious consequences, including fines, probation, and potentially jail time. However, if the requirements of your original licensure state are similar to the requirements in Indiana, you may be able to apply for reciprocity on that basis.

In order to make this application, you will need to contact the Indiana Real Estate Commission to see if your requirements enable you to qualify. If you do qualify, you will need to pass the state portion of the pre-license exam and submit the broker license application form. If you do not qualify, you will need to take the full 90-hour pre-license course from an approved provider in addition to the pre-license exam and the broker license application.

What Is The Broker Pre-Licensing Exam?

The broker pre-licensing exam is a way to ensure that you, as a real estate agent, meet all the requirements for obtaining a valid real estate broker license. It is one of the requirements that all new agents must meet in order to get their license and is also required for any out-of-state license holders that have been qualified.  The exam itself covers a wide range of topics, including:

  • Financing
  • Property Management
  • Title Transfers
  • How To Practice Real Estate
  • Principles of Agency
  • Contracts
  • Leasing
  • And more…

The State exam fee is around $55. It is possible to take this exam completely online as long as the exam provider is approved and the passing score on the exam is 75%. The state-specific component of the exam is 130 questions long, while the national section comprises only 80 questions. The test itself is rigorous, and many people who are not adequately prepared fail to pass it. This is why a broker pre-licensing can be so helpful in providing you with the confidence you need, even if you have already qualified.

What If I Am Not Qualified?

If the Indiana Real Estate Commission determines that your state’s licensing requirements do not match up to the requirements of Indiana, you will be required to take the full 90-hour pre-licensing course from an approved provider in addition to taking the exam.

This is not a reflection of your skills or knowledge as a real estate agent. On the contrary, this may simply be due to your lack of familiarity with the unique aspects of Indiana’s real estate laws. For example, in Indiana, there are fair housing laws that provide a guaranteed right to rent or buy a home free from discrimination. It is also illegal in Indiana for a landlord to deny a tenant access to the tenant’s rented property through any means other than a court order. This means the landlord cannot change the locks, bar the windows, or remove the doors. Knowing about laws like this is one of the most critical elements of successfully brokering real estate.

Fortunately, this course can be taken online at your own pace. This means that you could complete the entire course in two weeks or take your time. You have one year to complete the exam after you have completed the full course. There are a number of different providers that offer this course at an affordable price. It is important to ensure that you only take the course through an approved provider. Once you have completed it, you will then be able to take a pre-test to help you determine if you are ready to take the full exam.

Where To Take The Broker Pre-Licensing Course?

At Indiana Real Estate Institute, we are committed to your growth and success. We have created a pre-licensing course that defies the norms. Instead of dull presentations that are a pain to sit through and fail to instill the information you need to remember, our classes are designed to be memorable, entertaining, and engaging. Furthermore, we provide a variety of different ways to learn. You could opt to take the entire course online. This provides you with maximum flexibility, enabling you to watch engaging recordings of a live presented class in front of an audience. On the other hand, you may also prefer the virtual option. Our virtual classes enable you to learn remotely with a live online instructor from the comfort of your own home. Finally, if you would prefer to be able to attend classes in person, we also provide you with the opportunity to join our live instructors at our facility.

Brian is a highly acclaimed speaker, broker, instructor, appraiser, and construction expert with over 25 years of experience. Brian received his bachelor’s degree in finance & real estate from Indiana University and is currently attending IU McKinney Law. GO Hoosiers! After his disappointing attempt at being the next ultimate Jedi Master in the latest Star Wars movie, he found his force talents were much better served as a real estate instructor and speaker.

His vast knowledge and background has taken him all over to teach many topics regarding real estate agency, brokerage, business operations, contracts, appraisal, and investing. He hosts multiple podcasts on real estate education, as well. He is all about helping agents learn what they didn’t know they needed to know.

When he isn’t yacking his head off in front of an audience or helping his talented agents achieve real estate glory, he TRIES to keep his wife happy and occasionally makes his kids laugh.



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