CHAPTER 3. LICENSING
IC 25-34.1-3
Chapter 3. Licensing
IC 25-34.1-3-1
Registration or license requirements; fees or charges
Sec. 1. Any agency or political subdivision of the state other thanthe commission may not impose any registration or licenserequirement or any license or employment fee or charge on licenseeson account of activities defined in IC 25-34.1.
As added by Acts 1979, P.L.248, SEC.1.
IC 25-34.1-3-2
Transactions without license; prohibition; exemption
Sec. 2. (a) Except as provided in:
(1) subsection (b);
(2) section 8(i) of this chapter; and
(3) section 11 of this chapter;
no person shall, for consideration, sell, buy, trade, exchange, option,lease, rent, manage, list, or appraise real estate or negotiate or offerto perform any of those acts in Indiana or with respect to real estatesituated in Indiana, without a license.
(b) This article does not apply to:
(1) acts of an attorney which constitute the practice of law;
(2) performance by a public official of acts authorized by law;
(3) acts of a receiver, executor, administrator, commissioner,trustee, or guardian, respecting real estate owned or leased bythe person represented, performed pursuant to court order or awill;
(4) rental, for periods of less than thirty (30) days, of rooms,lodging, or other accommodations, by any commercial hotel,motel, tourist facility, or similar establishment which regularlyfurnishes such accommodations for consideration;
(5) rental of residential apartment units by an individualemployed or supervised by a licensed broker;
(6) rental of apartment units which are owned and managed bya person whose only activities regulated by this article are inrelation to a maximum of twelve (12) apartment units which arelocated on a single parcel of real estate or on contiguous parcelsof real estate;
(7) referral of real estate business by a broker, salesperson, orreferral company which is licensed under the laws of anotherstate, to or from brokers and salespersons licensed by this state;
(8) acts performed by a person in relation to real estate ownedby that person unless that person is licensed under this article,in which case the article does apply to him;
(9) acts performed by a regular, full-time, salaried employee ofa person in relation to real estate owned or leased by that personunless the employee is licensed under this article, in which casethe article does apply to him;
(10) conduct of a sale at public auction by a licensed auctioneer
pursuant to IC 25-6.1;
(11) sale, lease, or other transfer of interests in cemetery lots;and
(12) acts of a broker or salesperson, who is licensed under thelaws of another state, which are performed pursuant to, andunder restrictions provided by, written permission that isgranted by the commission in its sole discretion, except thatsuch a person shall comply with the requirements of section5(c) of this chapter.
As added by Acts 1979, P.L.248, SEC.1. Amended by Acts 1982,P.L.156, SEC.1; P.L.183-1991, SEC.6; P.L.64-2004, SEC.17.
IC 25-34.1-3-3
Repealed
(Repealed by Acts 1982, P.L.156, SEC.4.)
IC 25-34.1-3-3.1
Requirements for salesperson's license
Sec. 3.1. (a) To obtain a salesperson license, an individual must:
(1) be at least eighteen (18) years of age before applying for alicense and must not have a conviction for:
(A) an act that would constitute a ground for disciplinarysanction under IC 25-1-11;
(B) a crime that has a direct bearing on the individual'sability to practice competently; or
(C) a crime that indicates the individual has the propensityto endanger the public;
(2) have successfully completed courses in the principles,practices, and law of real estate, totaling eight (8) semestercredit hours, or their equivalent, as a student at an accreditedcollege or university or have successfully completed anapproved salesperson course as provided in IC 25-34.1-5-5(a);
(3) apply for a license by submitting the fee prescribed by thecommission and an application containing the name, address,and age of the applicant, the name under which the applicantintends to conduct business, the principal broker's addresswhere the business is to be conducted, proof of compliance withsubdivision (2), and any other information the commissionrequires;
(4) pass a written examination prepared and administered by thecommission or its duly appointed agent; and
(5) submit not more than one (1) year after passing the writtenexamination under subdivision (4) a sworn certification of aprincipal broker that the principal broker intends to associatewith the applicant and maintain that association until notice oftermination of the association is given to the commission.
(b) Upon the applicant's compliance with the requirements ofsubsection (a), the commission shall:
(1) issue a wall certificate in the name of the salesperson to theprincipal broker who certified the applicant's association with
the principal broker; and
(2) issue to the salesperson a pocket identification card whichcertifies that the salesperson is licensed and indicates theexpiration date of the license and the name of the principalbroker.
(c) A salesperson shall:
(1) act under the auspices of the principal broker responsible forthat salesperson's conduct under this article;
(2) be associated with only one (1) principal broker;
(3) maintain evidence of licensure in the office, branch office,or sales outlet of the principal broker;
(4) advertise only in the name of the principal broker, with theprincipal broker's name in letters of advertising larger than thatof the salesperson's name; and
(5) not maintain any real estate office apart from that officeprovided by the principal broker.
(d) Upon termination of a salesperson's association with aprincipal broker, the salesperson's license shall be returned to thecommission within five (5) business days. The commission shallreissue the license to any principal broker whose certification, asprescribed in subsection (a)(5), is filed with the commission, and thecommission shall issue a new identification card to the salespersonreflecting that change.
(e) Unless a license is renewed, a salesperson license expires ona date specified by the licensing agency under IC 25-1-6-4 andexpires biennially after the initial expiration date. An applicant forrenewal shall submit an application in the manner prescribed by theboard and pay the renewal fee established by the board underIC 25-1-8-2 on or before the renewal date specified by the licensingagency. If the holder of a license does not renew the license by thedate specified by the licensing agency, the license expires andbecomes invalid without the board taking any action.
(f) If the holder of a license under this section fails to renew thelicense on or before the date specified by the licensing agency, thelicense may be reinstated by the commission if the holder of thelicense, not later than three (3) years after the expiration of thelicense, meets the requirements of IC 25-1-8-6(c).
(g) If a license under this section has been expired for more thanthree (3) years, the license may be reinstated by the commission ifthe holder meets the requirements for reinstatement underIC 25-1-8-6(d).
(h) A salesperson license may be issued to an individual who isnot yet associated with a principal broker but who otherwise meetsthe requirements of subsection (a). A license issued under thissubsection shall be held by the commission in an unassigned statusuntil the date the individual submits the certification of a principalbroker required by subsection (a)(5). If the individual does notsubmit the application for licensure within one (1) year after passingthe commission examination, the commission shall void theapplication and may not issue a license to that applicant unless the
applicant again complies with the requirements of subsection (a)(4)through (a)(5).
(i) If an individual holding a salesperson license is not associatedwith a principal broker for two (2) successive renewal periods, thecommission shall notify the individual in writing that the individual'slicense will become void if the individual does not associate with aprincipal broker within thirty (30) days from the date the notificationis mailed. A void license may not be renewed.
As added by Acts 1982, P.L.156, SEC.2. Amended by P.L.255-1987,SEC.2; P.L.214-1993, SEC.82; P.L.128-1994, SEC.2; P.L.236-1995,SEC.49; P.L.182-1996, SEC.1; P.L.194-2005, SEC.85;P.L.157-2006, SEC.71; P.L.105-2008, SEC.62.
IC 25-34.1-3-4
Repealed
(Repealed by Acts 1982, P.L.156, SEC.4.)
IC 25-34.1-3-4.1
Requirements for broker's license
Sec. 4.1. (a) To obtain a broker license, an individual must:
(1) be at least eighteen (18) years of age before applying for alicense and must not have a conviction for:
(A) an act that would constitute a ground for disciplinarysanction under IC 25-1-11;
(B) a crime that has a direct bearing on the individual'sability to practice competently; or
(C) a crime that indicates the individual has the propensityto endanger the public;
(2) have satisfied section 3.1(a)(2) of this chapter and have hadcontinuous active experience for one (1) year immediatelypreceding the application as a licensed salesperson in Indiana.However, this one (1) year experience requirement may bewaived by the commission upon a finding of equivalentexperience;
(3) have successfully completed an approved broker course ofstudy as prescribed in IC 25-34.1-5-5(b);
(4) apply for a license by submitting the application feeprescribed by the commission and an application specifying thename, address, and age of the applicant, the name under whichthe applicant intends to conduct business, the address where thebusiness is to be conducted, proof of compliance withsubdivisions (2) and (3), and any other information thecommission requires;
(5) pass a written examination prepared and administered by thecommission or its duly appointed agent; and
(6) within one (1) year after passing the commissionexamination, submit the license fee established by thecommission under IC 25-1-8-2. If an individual applicant failsto file a timely license fee, the commission shall void theapplication and may not issue a license to that applicant unless
that applicant again complies with the requirements ofsubdivisions (4) and (5) and this subdivision.
(b) To obtain a broker license, a partnership must:
(1) have as partners only individuals who are licensed brokers;
(2) have at least one (1) partner who:
(A) is a resident of Indiana; or
(B) is a principal broker under IC 25-34.1-4-3(b);
(3) cause each employee of the partnership who acts as a brokeror salesperson to be licensed; and
(4) submit the license fee established by the commission underIC 25-1-8-2 and an application setting forth the name andresidence address of each partner and the informationprescribed in subsection (a)(4).
(c) To obtain a broker license, a corporation must:
(1) have a licensed broker:
(A) residing in Indiana who is either an officer of thecorporation or, if no officer resides in Indiana, the highestranking corporate employee in Indiana with authority to bindthe corporation in real estate transactions; or
(B) who is a principal broker under IC 25-34.1-4-3(b);
(2) cause each employee of the corporation who acts as a brokeror salesperson to be licensed; and
(3) submit the license fee established by the commission underIC 25-1-8-2, an application setting forth the name and residenceaddress of each officer and the information prescribed insubsection (a)(4), a copy of the certificate of incorporation, anda certificate of good standing of the corporation issued by thesecretary of state.
(d) To obtain a broker license, a limited liability company must:
(1) if a member-managed limited liability company:
(A) have as members only individuals who are licensedbrokers; and
(B) have at least one (1) member who is:
(i) a resident of Indiana; or
(ii) a principal broker under IC 25-34.1-4-3(b);
(2) if a manager-managed limited liability company, have alicensed broker:
(A) residing in Indiana who is either a manager of thecompany or, if no manager resides in Indiana, the highestranking company officer or employee in Indiana withauthority to bind the company in real estate transactions; or
(B) who is a principal broker under IC 25-34.1-4-3(b);
(3) cause each employee of the limited liability company whoacts as a broker or salesperson to be licensed; and
(4) submit the license fee established by the commission underIC 25-1-8-2 and an application setting forth the informationprescribed in subsection (a)(4), together with:
(A) if a member-managed company, the name and residenceaddress of each member; or
(B) if a manager-managed company, the name and residence
address of each manager, or of each officer if the companyhas officers.
(e) Licenses granted to partnerships, corporations, and limitedliability companies are issued, expire, are renewed, and are effectiveon the same terms as licenses granted to individual brokers, exceptas provided in subsection (h), and except that expiration orrevocation of the license of:
(1) any partner in a partnership or all individuals in acorporation satisfying subsection (c)(1); or
(2) a member in a member-managed limited liability companyor all individuals in a manager-managed limited liabilitycompany satisfying subsection (d)(2);
terminates the license of that partnership, corporation, or limitedliability company.
(f) Upon the applicant's compliance with the requirements ofsubsection (a), (b), or (c), the commission shall issue the applicant abroker license and an identification card which certifies the issuanceof the license and indicates the expiration date of the license. Thelicense shall be displayed at the broker's place of business.
(g) Unless the license is renewed, a broker license expires, forindividuals, on a date specified by the licensing agency underIC 25-1-6-4 and expires biennially after the initial expiration date.An applicant for renewal shall submit an application in the mannerprescribed by the board and pay the renewal fee established by thecommission under IC 25-1-8-2 on or before the renewal datespecified by the licensing agency. If the holder of a license does notrenew the license by the date specified by the licensing agency, thelicense expires and becomes invalid without the board taking anyaction.
(h) If the holder of a license under this section fails to renew thelicense on or before the date specified by the licensing agency, thelicense may be reinstated by the commission if the holder of thelicense, not later than three (3) years after the expiration of thelicense, meets the requirements of IC 25-1-8-6(c).
(i) If a license under this section has been expired for more thanthree (3) years, the license may be reinstated by the commission ifthe holder meets the requirements for reinstatement underIC 25-1-8-6(d).
(j) A partnership, corporation, or limited liability company maynot be a broker-salesperson except as authorized in IC 23-1.5. Anindividual broker who associates as a broker-salesperson with aprincipal broker shall immediately notify the commission of thename and business address of the principal broker and of anychanges of principal broker that may occur. The commission shallthen change the address of the broker-salesperson on its records tothat of the principal broker.
As added by Acts 1982, P.L.156, SEC.3. Amended by P.L.255-1987,SEC.3; P.L.5-1988, SEC.139; P.L.214-1993, SEC.83; P.L.128-1994,SEC.3; P.L.229-1995, SEC.6; P.L.236-1995, SEC.50; P.L.182-1996,SEC.2; P.L.64-2004, SEC.18; P.L.194-2005, SEC.86; P.L.157-2006,
SEC.72; P.L.105-2008, SEC.63.
IC 25-34.1-3-5
Licensing of nonresident; consent to service of process; waiver
Sec. 5. (a) A resident of another state, meeting the requirementsof this chapter, may be licensed.
(b) A nonresident salesperson or broker shall file with thecommission a written consent that any action arising out of theconduct of the licensee's business in Indiana may be commenced inany county of this state in which the cause of action accrues. Theconsent shall provide that service of process may be made upon thecommission, as agent for the nonresident licensee, and that servicein accordance with the Indiana Rules of Trial Procedure subjects thelicensee to the jurisdiction of the courts in that county.
(c) The requirements of this section may be waived for individualsof or moving from other jurisdictions if the following requirementsare met:
(1) The jurisdiction grants the same privilege to the licensees ofthis state.
(2) The individual is licensed in that jurisdiction.
(3) The licensing requirements of that jurisdiction aresubstantially similar to the requirements of this chapter.
(4) The applicant states that the applicant has studied, isfamiliar with, and will abide by the statutes and rules of thisstate.
As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.255-1987,SEC.4; P.L.64-2004, SEC.19.
IC 25-34.1-3-6
Change of name, business address, or association of licensee orprincipal broker
Sec. 6. Each licensee and each licensee's principal broker, if any,shall notify the commission immediately of any change of name,name under which the licensee transacts business, business address,or association.
As added by Acts 1979, P.L.248, SEC.1.
IC 25-34.1-3-7
Repealed
(Repealed by Acts 1981, P.L.222, SEC.296.)
IC 25-34.1-3-8
Real estate appraiser licensure and certification program;necessity for licensure or certification
Sec. 8. (a) This section does not preclude a person who:
(1) is not licensed or certified as a real estate appraiser underthis section; and
(2) is licensed as a broker under this article;
from appraising real estate in Indiana for compensation.
(b) As used in this section, "federal act" refers to Title XI of the
Financial Institutions Reform, Recovery, and Enforcement Act (12U.S.C. 3331 through 3351).
(c) The commission shall adopt rules to establish a real estateappraiser licensure and certification program to be administered bythe board.
(d) The commission may not adopt rules under this section exceptupon the action and written recommendations of the board underIC 25-34.1-8-6.5.
(e) The real estate appraiser licensure and certification programestablished by the commission under this section must meet therequirements of:
(1) the federal act;
(2) any federal regulations adopted under the federal act; and
(3) any other requirements established by the commission asrecommended by the board, including requirements foreducation, experience, examination, reciprocity, and temporarypractice.
(f) The real estate appraiser licensure and certificationrequirements established by the commission under this section mustrequire a person to meet the standards for real estate appraisercertification and licensure established:
(1) under the federal act;
(2) by federal regulations; and
(3) under any other requirements established by the commissionas recommended by the board, including requirements foreducation, experience, examination, reciprocity, and temporarypractice.
(g) The commission may require continuing education as acondition of renewal for real estate appraiser licensure andcertification.
(h) The following are not required to be a licensed or certified realestate appraiser to perform the requirements of IC 6-1.1-4:
(1) A county assessor.
(2) A township assessor.
(3) An employee of a county or township assessor.
(i) Notwithstanding IC 25-34.1-3-2(a):
(1) only a person who receives a license or certificate issuedunder the real estate appraiser licensure and certificationprogram established under this section may appraise real estateinvolved in transactions governed by:
(A) the federal act; and
(B) any regulations adopted under the federal act;
as determined under rules adopted by the commission, asrecommended by the board; and
(2) a person who receives a license or certificate issued underthe real estate appraiser licensure and certification programestablished under this section may appraise real estate notinvolved in transactions governed by:
(A) the federal act; and
(B) any regulations adopted under the federal act; as determined under rules adopted by the commission, asrecommended by the board.
As added by P.L.186-1990, SEC.12. Amended by P.L.183-1991,SEC.7; P.L.57-2007, SEC.3; P.L.146-2008, SEC.530.
IC 25-34.1-3-9
Repealed
(Repealed by P.L.57-2007, SEC.9.)
IC 25-34.1-3-9.5
Fees; real estate appraiser licensure and certification program
Sec. 9.5. (a) The commission shall establish fees underIC 25-1-8-2 to implement section 8 of this chapter.
(b) Notwithstanding IC 25-1-8-2, a fee established underIC 25-1-8-2 to implement section 8 of this chapter may not be lessthan fifty dollars ($50).
(c) The commission shall establish fees to provide funding for theinvestigative fund established by IC 25-34.1-8-7.5. The fees underthis subsection may not be more than twenty dollars ($20).
(d) The board may collect a fee required by federal law andtransmit the fees to the federal government as required by federallaw.
(e) A fee described in subsection (a) is in addition to any feesrequired by federal law.
As added by P.L.57-2007, SEC.4.
IC 25-34.1-3-10
Inactive license requirements; continuing education; reactivationrequirements
Sec. 10. (a) A salesperson licensed under section 3.1 of thischapter or a broker licensed under section 4.1 of this chapter mayapply for and receive an inactive license from the commission.
(b) An individual may not be granted an inactive license withoutthe approval of the commission if a disciplinary or suspensionhearing is pending against the individual.
(c) An individual with an inactive license:
(1) may not perform an act that requires a salesperson orbroker's license;
(2) is not required to fulfill the continuing educationrequirements under IC 25-34.1-9;
(3) is required to pay any fees that a licensee is required to pay;and
(4) must fulfill the requirements under IC 25-34.1-9-11 for thecurrent licensing period before applying for reactivation of theindividual's license.
(d) Notwithstanding IC 25-34.1-9-11(2), the commission mayadopt rules under IC 4-22-2 establishing continuing educationrequirements for individuals who have reactivated a license with lessthan twelve (12) months remaining in the licensing period.
As added by P.L.120-1992, SEC.1. Amended by P.L.157-2006,
SEC.73.
IC 25-34.1-3-11
Acts permitted by unlicensed out-of-state commercial broker;written consent
Sec. 11. (a) An out-of-state commercial broker, for a fee,commission, or other valuable consideration, or in expectation, orupon the promise of receiving or collecting a fee, commission, orother valuable consideration, may perform acts with respect tocommercial real estate that require a license under this articlewithout a license under this article, if the out-of-state commercialbroker does all of the following:
(1) Works in cooperation with a broker who holds a validlicense issued under this article.
(2) Enters into a written agreement with the broker described insubdivision (1) that includes the terms of cooperation andcompensation and a statement that the out-of-state commercialbroker and the broker's agents will comply with the laws of thisstate.
(3) Furnishes the broker described in subdivision (1) with acopy of the out-of-state commercial broker's current certificateof good standing or other proof of a license in good standingfrom a jurisdiction where the out-of-state commercial brokermaintains a valid real estate license.
(4) Files an irrevocable written consent with the commissionthat legal actions arising out of the conduct of the out-of-statecommercial broker or the broker's agents may be commencedagainst the out-of-state commercial broker in a court withjurisdiction in a county in Indiana in which the cause of actionaccrues.
(5) Advertises in compliance with state law and includes thename of the broker described in subdivision (1) in alladvertising.
(6) Deposits all escrow funds, security deposits, and othermoney received by either the out-of-state commercial broker orthe broker described in subdivision (1) in a trust accountmaintained by the broker described in subdivision (1).
(7) Deposits all documentation required by this section andrecords and documents related to the transaction with the brokerdescribed in subdivision (1).
(b) The broker described in subsection (a)(1) shall retain thedocumentation that is provided by the out-of-state commercial brokeras required under this section, and the records and documents relatedto a transaction, for at least five (5) years.
(c) An out-of-state commercial salesperson may perform acts withrespect to commercial real estate that require a salesperson to belicensed under this article without a license under this article if theout-of-state commercial salesperson meets all of the followingrequirements:
(1) The out-of-state commercial salesperson: (A) is licensed with and works under the direct supervisionof the out-of-state commercial broker;
(B) provides the broker described in subsection (a)(1) witha copy of the out-of-state commercial salesperson's currentcertificate of good standing or other proof of a license ingood standing from the jurisdiction where the out-of-statecommercial salesperson maintains a valid real estate licensein connection with the out-of-state commercial broker; and
(C) collects money, including:
(i) commissions;
(ii) deposits;
(iii) payments;
(iv) rentals; or
(v) escrow funds;
only in the name of and with the consent of the out-of-statecommercial broker under whom the out-of-state commercialsalesperson is licensed.
(2) The out-of-state commercial broker described in subdivision(1)(A) meets all of the requirements of subsection (a).
(d) A person licensed in a jurisdiction where there is not a legaldistinction between a real estate broker license and a real estatesalesperson license must meet the requirements of subsection (a)before engaging in an act that requires a license under this article.
(e) An out-of-state commercial broker or salesperson acting underthis section shall file a written consent as provided in section 5(b) ofthis chapter.
As added by P.L.64-2004, SEC.20.
IC 25-34.1-3-12
Criminal convictions
Sec. 12. A licensee who is convicted of a crime (as defined inIC 33-23-1-4) shall send a copy of the:
(1) complaint or other information that describes the crime; and
(2) judgment of conviction;
to the commission not more than thirty (30) days after the date of theconviction.
As added by P.L.87-2006, SEC.3.