876 Ind. Admin. Code 6-4-1

Current through December 25, 2024

Section 876 IAC 6-4-1 - Real estate broker courses; hours of classroom instruction

Authority: IC 25-34.1-2-5

Affected: IC 25-34.1-5

Sec. 1.

(a) A real estate broker course shall consist of at least ninety (90) hours of classroom instruction with required topics and hours spent on those topics as provided for in this section.

(b) An approved real estate broker course shall include instruction in real estate basics and law and consist of the following:

(1) One (1) hour in introduction to real estate law and course review.

(2) Three (3) hours in basic real estate concepts to include the following:

(A) Types of real property.

(B) Real estate market.

(C) Real and personal property.

(D) Surface, air, and subsurface rights.

(E) Concepts of homeownership.

(3) Four (4) hours in property ownership and interests to include the following:

(A) Bundle of rights.

(B) Estates.

(C) Forms of ownership.

(D) Encumbrances, liens, and other interests.

(E) Governmental powers.

(4) Four (4) hours in transfer of title to real property and title records to include the following:

(A) Title.

(B) Private and public ownership.

(C) Transfer of title.

(D) Voluntary alienation.

(E) Involuntary alienation.

(F) Deeds.

(G) Conveyance of decedent's property.

(H) Title records, searches, and title insurance.

(5) Two (2) hours in land use controls and property development to include the following:

(A) Public restrictions.

(B) Comprehensive plans and zoning.

(C) Building codes.

(D) Environmental issues.

(E) Private restrictions.

(F) Subdivision and development.

(6) Two (2) hours in real estate brokerage to include the following:

(A) Brokerage industry.

(B) Managing broker and affiliation of brokers.

(C) Independent contractor status.

(D) Compensation.

(E) Antitrust laws.

(F) Do not call registry.

(7) Two (2) hours in law of agency to include the following:

(A) History of law of agency.

(B) Definitions.

(C) Creation of agency relationship.

(D) Compensation.

(E) Fiduciary responsibilities.

(F) Termination of agency relationship.

(G) Single and limited (dual) agency.

(H) Disclosures.

(I) Minimum requirements.

(8) Twelve (12) hours in real estate contracts to include the following:

(A) Essential elements of contract.

(B) Consent.

(C) Statute of frauds.

(D) Discharge.

(E) Assignment.

(F) Interpretation of contracts.

(G) Remedies for breach of contract.

(H) Listing contracts.

(I) Multiple listing services.

(J) Installment land contracts.

(K) Options.

(L) Property management.

(9) Two (2) hours in landlord and tenant to include the following:

(A) Definitions.

(B) Nonfreehold estates.

(C) Types of leases.

(D) Provisions of leases.

(E) Statutory obligations.

(F) Enforcement of obligations.

(G) Remedies for breach of lease.

(H) Federal regulation.

(10) One (1) hour in legal descriptions to include the following:

(A) Definitions.

(B) Metes and bounds.

(C) Rectangular (government) survey system.

(D) Lot-and-block (recorded plat) system.

(E) Land measurement.

(11) Six (6) hours in closing real estate transactions to include the following:

(A) Definitions.

(B) Parties to a closing.

(C) Inspections and surveys.

(D) Title requirements.

(E) Insurance.

(F) Necessary documents.

(G) Proration calculations.

(H) Closing statements.

(I) Funds at closing and financing considerations.

(J) Practice completion of closing statements.

(12) One (1) hour in federal income taxation of real estate to include the following:

(A) Definitions.

(B) Income tax deductions.

(C) Mortgage interest credit.

(D) Sale of personal residence.

(13) Ten (10) hours in Indiana real estate license law and real estate commission rules to include the following:

(A) Definitions.

(B) Indiana real estate commission.

(C) Transactions requiring real estate license.

(D) License requirements.

(E) Inactive licenses.

(F) Managing broker.

(G) Recovery fund.

(H) Agency relationships.

(I) Professional standards and incompetent practice.

(J) Sanctions for violations.

(K) Evidence of licensure.

(L) Supervision of office.

(M) License association transfer.

(N) Commission splitting.

(O) Unlicensed associates.

(P) Listing agreements.

(Q) Offers to purchase.

(R) Closing statements.

(S) Escrow or trust accounts.

(T) Reporting of convictions.

(U) Broker interest in property.

(V) Referral of real estate business.

(W) Fee appraisals by brokers.

(X) Continuing education.

(14) One (1) hour in fair housing law to include the following:

(A) Fair Housing Act of 1968.

(B) Discrimination in sale or rental of property.

(C) Exemptions.

(D) Enforcement and penalties.

(15) One (1) hour in property insurance and home warranties to include the following:

(A) Definitions.

(B) Concepts.

(C) Standardized forms.

(D) Standard contents.

(E) Home warranty.

(16) Three (3) hours in basic house construction and architecture to include the following:

(A) Types of construction.

(B) Architectural style.

(C) Trends in building.

(D) HUD standards.

(E) Energy issues and trends.

(17) One (1) hour in securities law aspects of real estate transactions to include the following:

(A) Definitions.

(B) Securities in real estate.

(C) Securities Act of 1933.

(D) Securities Exchange Act of 1934.

(18) Three (3) hours in inspections to include:

(A) Property inspection by buyer.

(B) Termite inspection.

(C) Common inspection issues.

(D) Environmental issues.

(c) An approved real estate broker course shall include instruction in real estate brokerage operation and consist of the following:

(1) Three (3) hours in real estate brokerage to include the following:

(A) Definitions.

(B) Managing broker and affiliation of brokers.

(C) Compensation.

(D) Procuring cause.

(E) Independent contractor status.

(F) Minimum level of service.

(G) Antitrust laws.

(H) Real estate management.

(2) Two (2) hours in earnest money and trust accounts to include the following:

(A) Definitions.

(B) Trust account requirements.

(C) Earnest money deposits.

(D) Tenant security deposits.

(E) Rents.

(F) Down payments.

(G) Final settlement.

(H) Other non-trust funds.

(I) Funds from transactions.

(J) Disbursement.

(K) Record keeping requirements.

(3) Two (2) hours in property management to include the following:

(A) Sources of business.

(B) Agreement.

(C) Responsibilities.

(D) Rental rates.

(E) Marketing.

(F) Selection of tenants.

(G) Maintenance.

(H) Federal laws regarding property management.

(I) Risk management.

(J) Environmental issues.

(K) Compensation.

(d) An approved real estate broker course shall include instruction in real estate finance and consist of the following:

(1) One (1) hour in introduction to real estate finance to include the following:

(A) Definitions.

(B) Theories of ownership.

(C) Elements of mortgage.

(D) Mortgage vs. deed of trust.

(E) Other financing instruments.

(F) Real estate finance history.

(G) Financial markets.

(H) Federal reserve system.

(2) One (1) hour in sources of mortgage funds to include the following:

(A) Definitions.

(B) Direct sources or lenders.

(C) Indirect sources or investors.

(D) Loan programs.

(3) One (1) hour in the secondary mortgage market to include the following:

(A) Definitions.

(B) Secondary mortgage market.

(C) Private mortgage insurance.

(4) Four (4) hours in financing instruments and loan products to include the following:

(A) Definitions.

(B) Financing options.

(C) Other financing instruments.

(D) Note provisions.

(E) Rights of borrowers.

(F) Rights of lenders.

(G) Purchase.

(5) Three (3) hours in real estate loan underwriting to include the following:

(A) Definitions.

(B) Borrower analysis.

(C) Property analysis.

(D) Loan analysis.

(E) Income property underwriting.

(6) One (1) hour in consumer legislation affecting real estate financing to include the following:

(A) Definitions.

(B) Truth in lending.

(C) Equal credit opportunity act.

(D) Real Estate Settlement Procedures Act (RESPA).

(E) Wall Street Reform and Consumer Protection Act (Dodd-Frank).

(7) Two (2) hours in property tax to include the following:

(A) Tax rate and calculations.

(B) Property subject to taxation.

(C) Listing property for taxation.

(D) Appraisal and assessment.

(E) Timetable for listing and tax collection.

(F) Property tax liens.

(G) Special priority of tax liens.

(H) Exemptions.

(I) Records.

(J) Payment.

(8) Two (2) hours in real property valuation/Uniform Standards of Professional Appraisal Practice (USPAP) to include the following:

(A) Indiana licensing of fee appraisers.

(B) Purpose of appraisal.

(C) Approaches.

(D) Factors influencing value.

(E) Depreciation.

(F) Appraisal procedure.

(G) Competitive market analysis.

(H) Introduction to USPAP.

(9) Three (3) hours in current and geographic real estate topics, which may include the following:

(A) Current trends in real estate industry.

(B) Legislative issues affecting real estate industry.

(C) Commission news and findings.

The topics may not include MLS use and rules, brokerage or company internal rules or policy, or industry association rules or policy.

(e) The examinations required under section 4 of this rule may count toward up to six (6) hours of the ninety (90) hours required by subsection (a).

876 IAC 6-4-1

Filed 5/22/2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff 7/1/2014

Readopted filed 11/19/2020, 9:56 a.m.: 20201216-IR-876200513RFA

Readopted filed 3/21/2024, 4:07 p.m.: 20240417-IR-876230829RFA