How to Get a Indiana Real Estate License

Step-By-Step Guide to Become a Licensed Real Estate Agent

Indiana had a record-breaking year in the real estate market. It’s no surprise with the home prices in Indianapolis surging, and the demand continues to outpace supply. This trend doesn’t appear to be slowing down either. The Hoosier state is attractive to many because of the growing downtown and entertainment districts. According to Forbes, Indianapolis is one of the best downtowns in the US. The school districts are also known to be top notch in many of the growing suburbs of Indianapolis, which has tempted many Californians to migrate east.

While it’s not the biggest state or most populated state in the country, Indiana’s rental market is also in high demand. Indianapolis is a college town, which drives up rental property. It also contributes to the lack of inventory, which has been a headline across the state for years. At the end of July 2021, just 8,874 homes were in active status statewide. That is down 24.6 percent from the same month last year. The percent of original list price received at sale was 100.7 percent, up 3.0%.

This makes now a great time to break into the real estate industry in Indiana. But to become a real estate agent, you need a license.

You ready? Let’s break it down, step by step.

Step 1.  Complete the State Required Course 

The state of Indiana requires you to complete 90 hours of approved Pre-Licensing education.

The courses are to help you understand the nuts and bolts of Indiana real estate laws, policies, and procedures. These courses can take you from as little as one to three months to complete. It all depends on what pace you’re most comfortable with.

Topics include real property, forms of ownership, property value, real estate contracts, agency, property disclosures, financing, closing transactions, real estate math, and real estate office procedures.

Don’t be scared off by the vocabulary. This is what the classes are designed for. They’ll defang any confusing topics by breaking them down. Still scared? Trust me, you can do this. The pass rates after taking these classes are sky-high, typically over a 9% pass rate and the support these classes offer is amazing.

Students are always surprised how affordable these classes are. Take a look at the best real estate schools in Indiana and see for yourself. If you’re still looking for a way to save some dough, Agent Advice offers a way to get yours for free.

Step 2: Take and pass the course final exam

As soon as you finish the course material from your chosen school, you are eligible to take the exam. The exam takes about 3 hours to complete. It has 100 multiple-choice questions about national and state real estate laws and practices. To pass, you must earn at least a 75% in order to get a course completion certificate.

Step 3: Sign-up for and take the Indiana Pre-licensing exam

Once you pass the course exam, there’s another small step you can’t overlook. You must take the state required licensing exam that is administered by PSI. (Yes, I know – another exam!) Registration for the state licensing exam is an entirely separate process from proctoring for your course final exam.

This 125-question test is comprised of two portions, covering both state and national requirements.

The national portion consists of the following sections:

• Property ownership (10%)
• Valuation and market analysis (7%)
• Financing (8%)
• General principles of agency (11%)
• Property disclosures (7%)
• Contracts (18%)
• Leasing and Property Management (5%)
• Transfer of Title (7%)
• Practice of real estate (14%)
• Real estate calculations (8%)

The State portion includes:

• The Indiana Real Estate Commission (4 questions)
• Licensing (8 questions)
• Statutory & Regulatory Requirements (18 questions)
• Statutes & Rules Governing Licensees (16 questions)
• Real Estate Office Procedures (4 questions)

The Indiana Real Estate commission has announced the option of taking the licensing exam remotely instead of at a physical testing center location. PSI will still have in-person on site testing still available for those students who wish to take the exam in-person instead of online.

Step 4: Find a Sponsoring Broker

Yay, you’re finally getting to the fun part.

You have your passing exam score, but that doesn’t mean you’re clear to start buying and selling just yet. In Indiana, you must work for a licensed Brokerage. Brokerages are companies that hire agents, show them the ropes, and oversee their sales.

Here are a few factors to consider before choosing a brokerage:

• The Commission 💰 – Make sure you are getting a good split of money you bring in.
• Niche – Alongside the reputation, you want the company to specialize in the types of property you want to sell. Yup, it’s that simple.
• Opportunities For Growth 📈 – You don’t want a company that puts you in a position to stay flat. You want to be moving upwards. If a company doesn’t provide that, run baby, run.
• Company Culture 📊– You need to know that the brokerage you choose meshes will with your goals and personality. This is also where reputation comes into play. The company’s reputation matters. If a lot of people don’t have positive things to say, that may be based on some tangible rumors. Do your research before you agree to anything.

Step 5: Complete your Indiana licensing application

Now, you’ve passed the exam and agreed to a background check. Next, print out your score and other documents from above to apply for your license.

You have to provide the department with:

• Completed Application: Applications may be submitted online at MyLicense.IN.gov or completed by paper and mailed to the Indiana Real Estate Commission’s office. Be sure to include an email address as this is how your licensure status will be communicated.
• Application fee of $60.00
• Positive Response Documentation: If you answer “Yes” to any criminal history/discipline questions on the application or no to the diploma question, explain fully in a statement that includes all details. Include the violation, location, date, and disposition. Submit copies of court documents for each instance to support the statement.
• Broker Pre-Licensing Course Completion: If you are applying online, you must upload a digital copy of this document when you apply.  If you are applying by paper application, you must ensure this document is submitted with the paper application.
• Licensing Examination Score Report:  You must submit the original score sheet you received from Pearson Vue after passing the licensing examination.
• Verification of Licensure: Verification of any registration/license/certification to practice any profession or occupation in another state or territory.
• Broker or Broker Company Information: If you wish to have your license issued in an active status you will need to provide the names and license numbers of the broker or Broker Company you will be working under. If this section is left blank, your license will be issued in unassigned status unless you select inactive.

It sometimes takes up to 2 months to process, so get these printed off and submitted as soon as possible to help speed it up.

IREC Requirements to get a real estate license 

First off, let’s give you your first introduction to the Indiana Real Estate Commission. This is the governing body that regulates all aspects of the real estate industry. They are the top dogs of all things real estate, they want to ensure that:

1. You are a US citizen
2. You are 18 or older
3. You have a high school diploma or an equivalent

The good news is that most of our visitors/users don’t need to worry about it. The only time you’d need to be concerned is if you have any criminal offenses, unpaid judgments, disciplinary actions taken against a professional or occupational license, or have performed unlicensed real estate activity.

How much does it cost to get your real estate license in Indiana?

Below is a list of costs associated with getting your Indiana real estate license:

Pre-licensing education and training costs:

The estimated cost for this is around $300-$800 or more depending on the school or online program you select. This involves finding an accredited and qualified real estate school to clock your hours. As stated earlier, the state of Indiana requires you to finish 90 hours of education.

Real estate licensing and exam fees

This fee schedule is estimated to cost about $121. The breakdown of this cost is as follows: The fee for an Arizona real estate salesperson license examination is $61, and the fee for a first-time license is an additional $60.

Real estate broker fees

These fees are estimated to cost anything from $30 to $450 per month. The real estate broker fees are the fees that you have to incur when you want to become associated with a recognized and accredited broker. As it is your first year, there are some things that your sponsor broker will provide. These things, such as office supplies, photocopies, internet, and any other business expenses, are usually associated with the daily operation of your business. It is also likely that you will have to pay a desk fee every month to help reimburse some of these costs.

Real estate membership dues

Membership dues and feels usually cost around $200 or more each year. And while they can qualify as a tax break in the state of Indiana, they are still a significant expense for many Realtors. This fee typically depends on how many associations you want to join. For instance, you can become part of your local and state real estate boards.

Every one of these boards comes with a membership fee that has to be paid monthly or yearly for you to be able to enjoy the numerous advantages and networking options they offer. The local MLS or Multiple Listing Service will also have fees associated with them. Depending on where you are in the state, you may have to pay your monthly dues either to your broker or to the association directly.

Continuing Education

Becoming a real estate agent does not mean you stop educating yourself once you have passed your licensing tests.  To stay an active agent, you have to meet SAE and CE requirements. Some CE courses are offered for free through local boards of realty. Additional designations, though optional, may also come with fees.

How long does it take to get a real estate license in Indiana?

This depends on how quickly you you want to power through the process. The longest step is the 90 hour pre-licensing course. This step can take anywhere from 2-6 weeks, depending on how quickly you complete the course online or in person.

Scheduling and taking the exam can take anywhere from 1-3 weeks, depending on availability at the testing centers.

Total Time: 4-10 weeks

As you see, it’s possible to have your real estate license within four weeks. How quickly you earn your license will depend on when you complete your course, pass the exam, and apply for the license.

How much do real estate agents in Indiana make?

The average real estate agent in Indiana makes around $49,562 per year. The top 20% of agents make around $105,000/year, while the bottom make a little more than $22,300/year.