876 Ind. Admin. Code 7-4-3

Current through December 25, 2024

Section 876 IAC 7-4-3 - Approved postlicensing educational courses

Authority: IC 25-34.1-2-5; IC 25-34.1-3-10

Affected: IC 25-34.1-3-4.1; IC 25-34.1-3-10.5

Sec. 3.

A broker must complete within the first two (2) years of licensure thirty (30) hours of approved postlicensing education consisting of the following:

(1) Six (6) hours of instruction in Indiana real estate transactions that includes the following:

(A) Unauthorized practice of law as follows:

(i) The dangers of unauthorized practice of law by real estate brokers.

(ii) Penalties.

(iii) Indiana State Bar Association vs. Indiana Real Estate Association, 1963.

(B) Contracts as follows:

(i) Elements of a contract.

(ii) Formation of a contract.

(iii) Issues affecting validity as follows:

(AA) Consideration.

(BB) Legal capacity of the parties.

(CC) Conditions affecting validity.

(iv) Obligations of the parties.

(v) Disputes and litigation.

(vi) License law issues.

(vii) Agency relationships.

(C) Listing/purchase agreements as follows:

(i) Listing agreements as follows:

(AA) Parties to the contract.

(BB) License law issues and agency disclosure.

(CC) Formation of the contract agreement (offer and acceptance).

(DD) Determining the listing price.

(EE) Terms of the listing agreement (length, compensation, etc).

(FF) Types of listings.

(GG) Permission for advertising.

(HH) Fair housing laws.

(II) Obligations of the parties.

(JJ) Termination of the listing.

(KK) Residential seller's disclosure form.

(LL) Lead-based paint form.

(ii) Purchase agreements as follows:

(AA) Parties to the contract.

(BB) License law and the purchase agreement.

(CC) Formation of the contract.

(DD) Property description.

(EE) Dealing with personal property.

(FF) Negotiating the price and terms.

(GG) Earnest money.

(HH) Method of payment.

(II) Appraisals.

(JJ) "Time is of the Essence".

(KK) Possession issues.

(LL) Surveys.

(MM) Flood insurance and homeowners insurance.

(NN) Environmental concerns.

(OO) Inspections process and issues.

(PP) Home warranties.

(QQ) Residential seller's disclosure form.

(RR) Lead-based paint form.

(SS) Title approval.

(TT) Real estate taxes.

(UU) Homeowners/condo associations.

(VV) Additional provisions.

(WW) Further conditions section.

(XX) Signatures of all parties.

(YY) Expiration.

(ZZ) Seller's potential responses.

(AAA) Brief discussion of procuring cause issues.

(iii) Required disclosures as follows:

(AA) Residential seller's disclosure form.

(BB) Lead-based paint disclosure form.

(CC) Agency relationships disclosure.

(D) Offers and counteroffers as follows:

(i) Presentation of offers as follows:

(AA) Written offers.

(BB) Verbal offers.

(ii) Owner response options/buyer or tenant response options as follows:

(AA) Acceptance.

(BB) Rejection.

(CC) Counter offer.

(DD) Letting an offer expire.

(iii) Confidentiality issues.

(iv) When does an offer become a contract?

(E) Closing process as follows:

(i) Learn your office policies and procedures.

(ii) The role of the title company.

(iii) The role of the lender.

(iv) The role of the listing broker.

(v) The role of the buyer/tenant broker.

(vi) The role of the limited agent.

(vii) The inspections process.

(viii) Surveys.

(ix) Zoning issues.

(x) Co-brokerage relationships.

(xi) Depositing the earnest money.

(xii) Closing documents.

(xiii) The closing statement.

(xiv) Broker's role at the actual closing.

(xv) After the closing.

(2) Six (6) hours of instruction in financing that includes the following:

(A) Financing and lending markets as follows:

(i) Primary mortgage market.

(ii) Secondary mortgage market.

(B) Mortgage fraud.

(C) Loan types as follows:

(i) Conventional and insured conventional loans.

(ii) FHA loans.

(iii) VA loans.

(iv) Land contracts.

(v) Other financing techniques.

(D) Good faith estimate (GFE) processing.

(E) Credit scoring as follows:

(i) The three (3) credit bureaus.

(ii) How credit scores are determined.

(iii) Rebuilding credit.

(3) Ten (10) hours of instruction in business planning/sales and marketing that includes the following:

(A) Business planning as follows:

(i) Contact database.

(ii) Budgeting.

(iii) Lead cultivation.

(iv) Buyer systems.

(v) Seller systems.

(B) Goal setting/time management as follows:

(i) Education.

(ii) Lead generation.

(iii) Networking.

(iv) Lead follow-up.

(v) Working with active buyers and sellers.

(C) Methods of growing business as follows:

(i) Prospecting.

(ii) Marketing.

(4) Five (5) hours of instruction in negotiating and counseling skills that includes basic negotiation styles of competing, collaborating, accommodating and the following:

(A) Negotiation principles and the phases of negotiation.

(B) Factors affecting the negotiation process.

(C) Cultural differences, language barriers, emotions, values/morals.

(D) Difficult situation or people, or both, as follows:

(i) Outcomes in negotiating.

(ii) Real estate counseling.

(E) Fee or free.

(F) Confidential advice to clients.

(G) Professional opinion vs. personal opinion.

(H) Counselors of real estate (CRE).

(5) One (1) hour of instruction in cultural diversity and fair housing that includes the following:

(A) Definitions.

(B) State and federal laws.

(C) Protected classes.

(D) Blockbusting.

(E) Prohibited practices.

(F) Enforcement.

(G) Diversity.

(6) Two (2) hours of instruction in construction that includes the following:

(A) Site preparation.

(B) Building codes.

(C) Building permits.

(D) Blueprints.

(E) Types.

(F) Styles.

(G) Foundation.

(H) Flooring.

(I) Framing (building envelope).

(J) Roof.

(K) Windows.

(L) Exterior doors.

(M) Interior finish work.

(N) Ventilation and moisture control.

(O) Heating and cooling.

(P) Plumbing.

(Q) Electrical.

(R) Building inspections/defects.

(S) Green building concepts.

876 IAC 7-4-3

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