EstatePass
Practice Of Real EstateLicense LawMEDIUM

A licensed Indiana broker, Rachel, has her license placed on inactive status. Which of the following statements correctly describes the legal effect of inactive status under Indiana law?

Correct Answer

D) Rachel may not perform any activities requiring a real estate license until her license is reactivated

Under IC 25-34.1, a broker on inactive status is prohibited from performing any activities that require a real estate license, including showing property, negotiating contracts, or earning commissions. Inactive status means the license exists but is not operative. To resume licensed activities, Rachel must reactivate her license by meeting IREC's reactivation requirements, including any applicable continuing education.

Answer Options
A
Rachel may perform real estate activities under direct supervision of her managing broker even on inactive status
B
Rachel may only perform real estate activities for family members and personal transactions without compensation
C
Rachel may continue to perform real estate activities as long as she discloses her inactive status to all clients
D
Rachel may not perform any activities requiring a real estate license until her license is reactivated

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

inactive_licenselicense_statusreactivationic_25_34_1

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing