TITLE 876 INDIANA REAL ESTATE COMMISSION

Amends 876 IAC to address the educational and examination requirements needed under IC 25-34.1-4.5 (as added by SEA 275 enacted by the 2012 Indiana General Assembly) for license transition of real estate salespersons to real estate brokers by adding 876 IAC 2-15.1 regarding course and exam requirements, course topics, and other miscellaneous provisions. Effective 30 days after filing with the Publisher.

IC 4-22-2.1-5 Statement Concerning Rules Affecting Small Businesses

SECTION 1. 876 IAC 2-15.1 IS ADDED TO READ AS FOLLOWS:

Affected: IC 25-34.1-3-5; IC 25-34.1-4.5

Sec. 1. (a) This rule establishes the educational and examination requirements for salespersons to obtain broker licenses under the transitional provisions found in IC 25-34.1-4.5. Its provisions apply to broker applicants and broker course providers as applicable.

(b) This rule does not apply to obtaining the following:

Affected: IC 25-34.1-4.5

Sec. 2. (a) This section through section 4 of this rule establish the educational requirements.

(b) The broker course shall be twenty-four (24) hours of education as provided for in this rule.

Affected: IC 25-34.1-4.5; IC 25-34.1-5-4; IC 25-34.1-5-8

Sec. 3. (a) 876 IAC 2-1 through 876 IAC 2-5 and 876 IAC 2-15 shall apply to the twenty-four (24) hour broker course under this rule except for the following, which shall not apply:

(b) 876 IAC 2-4-5 shall apply except that the attendance requirement in 876 IAC 2-4-5(a) shall be one hundred percent (100%) for the twenty-four (24) hour broker course.

(c) The limitation in IC 25-34.1-5-4(a)(2) to thirty-five (35) students per instructor per classroom does not apply to the transitional broker course under IC 25-34.1-4.5 and this rule.

(d) Except for real estate schools that are applying after the effective date of this rule for initial approval, approval of broker courses under this rule shall be considered significant changes under IC 25-34.1-5-8 and 876 IAC 2-2-12.

(e) The reference in 876 IAC 2-15-1(b) to 876 IAC 2-10 through 876 IAC 2-14 shall be deemed to be a reference to this rule.

(f) 876 IAC 2-10 through 876 IAC 2-14 shall not apply to broker courses under this rule.

Affected: IC 25-34.1-4.5

Sec. 4. The subject matter and hour requirements for the twenty-four (24) hour broker course under this rule are as follows:

Subject Area		Number of Hours
BROKERAGE OPERATIONS
	Broker Business Operations/Relationships	2
	Agency Relationships	1
	Law of Contract	2
	Listing/Purchase Agreements/Other Forms	2
	Closing the Transaction/Procedures/Issues	2
	Trust Account Management	1
FINANCING AND APPRAISING
	Broker Price Opinion (BPO)/Uniform Standards of Professional Appraisal Practice (USPAP)	2
	Financing and Lending Markets	1
	Mortgage Fraud	1
	Loan Types: Mortgage Markets	1
	Credit Scoring	1
GOVERNMENT REGULATIONS
	Consumer Legislation	1
	Land Use Controls/Environmental Issues	1
INDIANA LICENSE LAW AND PROFESSIONAL STANDARDS
	Indiana Real Estate License Law	4
	Ethics in Real Estate	2

Affected: IC 25-34.1-4.5

Sec. 5. (a) 876 IAC 2-17 shall not apply to examinations under this rule.

(b) The broker examination under this rule shall be an examination for the testing of real estate brokers.

(c) The broker examination will be administered by the commission's duly appointed agent.

(d) Prior to sitting for the broker examination under this rule, an applicant for a broker license must have completed the twenty-four (24) hour broker course under this rule.

(e) An applicant shall be deemed to have passed the examination upon attaining a score of at least seventy percent (70%).

(f) An applicant who does not pass the broker examination under this rule in three (3) attempts must again complete the broker course under this rule. However, the broker examination under this rule shall not be available after December 31, 2014, so all applicants must pass it by that date or be required to meet all the requirements for the initial licensure as a real estate broker that are in effect on January 1, 2015.

Affected: IC 25-34.1-4.5

Sec. 6. (a) An applicant who is not yet licensed as a broker, but completed the fifty-four (54) hour broker course under 876 IAC 2-10 through 876 IAC 2-15 prior to, or after, the effective date of this rule, shall for all purposes, including section 5(b) of this rule, be considered to have passed the twenty-four (24) hour broker course under this rule.

(b) An applicant who is not yet licensed as a broker, but passed the broker examination prior to the effective date of this rule shall for all purposes be considered to have passed the broker examination.

(c) An applicant who had taken and not passed the broker examination before the effective date of this rule shall be allowed to take the broker examination under this rule three (3) times as provided for in section 5(f) of this rule.

(d) This rule shall not be construed to allow any broker applicant who:

Notice of Public Hearing

DIN: 20120509-IR-876120158PRA

Composed: Apr 20,2024 12:20:31AM EDT

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