Ind. Code ch. 25-34.1-4

in effect

Ind. Code § 25-34.1-4-0.5 Prerequisites to becoming a managing broker

Sec. 0.5. Except as provided in section 6 of this chapter, to become a managing broker, an individual must: (1) hold an active broker's license for at least three (3) years; (2) take and pass at least twenty-four (24) hours of broker management courses approved by the commission; and (3) pass a written examination prepared and administered by the commission or its duly appointed agent. As added by P.L.127-2012, SEC.19. Amended by P.L.116-2015, SEC.4; P.L.166-2025, SEC.2.

Ind. Code § 25-34.1-4-0.6 Real estate schools

Sec. 0.6. Beginning July 1, 2013, a real estate school may offer courses described in section 0.5(2) of this chapter. An individual who takes and passes a course offered under this section is entitled to credit under section 0.5(2) of this chapter for the hours taken and passed under the course, regardless of whether the individual takes and passes the course before, on, or after July 1, 2014. As added by P.L.200-2013, SEC.6.

Ind. Code § 25-34.1-4-1 Responsibilities of broker company

Sec. 1. A broker company and its managing broker are responsible under this article for the actions of any broker who is associated with the broker company. Any broker company that maintains two (2) or more separate offices for associated licensees shall notify the commission of the name and address of the broker who manages each office. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.127-2012, SEC.20; P.L.116-2015, SEC.5.

Ind. Code § 25-34.1-4-2 Partnership, corporation, or limited liability company as broker company

Sec. 2. Except as provided in IC 23-1.5, a partnership broker, corporate broker, or limited liability company broker: (1) may act only as a broker company; and (2) shall designate to the commission a managing broker who meets the requirements for managing brokers set forth in IC 25-34.1-3-4.1 to be primarily responsible to the commission for its actions. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.128-1994, SEC.4; P.L.229-1995, SEC.7; P.L.127-2012, SEC.21; P.L.116-2015, SEC.6.

Ind. Code § 25-34.1-4-3 Residency requirements of managing brokers; certain nonresidents may be managing brokers

Sec. 3. (a) Except as provided in subsection (b), each individual who is a managing broker shall be a resident of Indiana. (b) A nonresident may be a managing broker if none of the licensees associated with the managing broker's broker company are residents of Indiana. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.128-1994, SEC.5; P.L.64-2004, SEC.21; P.L.127-2012, SEC.22; P.L.116-2015, SEC.7.

Ind. Code § 25-34.1-4-3.1 Individuals who became managing brokers on July 1, 2014

Sec. 3.1. An individual who, on June 30, 2014, was: (1) a principal broker; or (2) the designated individual broker under IC 25-34.1-4-2 (as in effect on June 30, 2014) of a partnership broker, corporate broker, or limited liability company broker; became a managing broker on July 1, 2014. As added by P.L.116-2015, SEC.8.

Ind. Code § 25-34.1-4-4 Independent contractor relationship

Sec. 4. Notwithstanding IC 23-1.5, the association of a broker with a broker company, as provided by this article, creates an independent contractor relationship unless otherwise specified by a written contract entered into by the broker company and the broker. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.229-1995, SEC.8; P.L.127-2012, SEC.23; P.L.116-2015, SEC.9.

Ind. Code § 25-34.1-4-5 Trust accounts

Sec. 5. (a) Each broker company shall do the following: (1) Maintain one (1) or more trust accounts (interest or noninterest bearing). (2) Deposit into a trust account described in subdivision (1) all funds belonging to others that come into the possession of the broker company or of any broker whose license the broker company is holding. (3) Clearly identify any account that is a trust account. The trust accounts shall contain all earnest money deposits, funds held for closing escrows, sale proceeds not yet disbursed, and all other funds belonging to others. (b) The broker company shall not use any trust account for the deposit of any personal funds or other business funds and shall keep a detailed record of the funds and any interest accrued in each trust account that identifies the amount of funds held for each beneficiary. Any interest earned shall be held for the beneficiary. (c) Upon: (1) the death of the sole proprietor, in the case of a sole proprietorship broker company; (2) the termination of a broker company; or (3) the expiration, revocation, or suspension of a broker company's license; the commission shall take custody of each trust account of the broker company and may appoint a successor trustee to protect and distribute the proceeds of that account. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.255-1987, SEC.5; P.L.114-2010, SEC.22; P.L.127-2012, SEC.24; P.L.116-2015, SEC.10; P.L.166-2025, SEC.3.

Ind. Code § 25-34.1-4-6 Death of sole proprietor or partner; carrying out business contracted before death; brokers associated with broker company

Sec. 6. (a) In the event of: (1) the death of the sole proprietor of a sole proprietorship broker company; or (2) the termination of a partnership broker company by the death of a partner; a broker formerly associated with the broker company may continue to carry out business contracted for before the death of the sole proprietor or termination of the broker company for a maximum period of ninety (90) days after the death or termination. During that period, the broker shall maintain a trust account as provided in section 5 of this chapter. However, until associating with another broker company, the broker may not undertake any new business. (b) Upon associating with a new broker company, the broker may conduct on behalf of the deceased proprietor or terminated managing broker only that business which is necessary to complete obligations assumed while associated with the broker company. All other acts performed by the broker shall be performed in association with the new managing broker. (c) Each broker formerly associated with the deceased or terminated managing broker becomes, upon the death or termination of the managing broker, a managing broker by law until the broker elects to act as a broker for another broker company. (d) This section applies only to matters of licensing and responsibility under this article and does not affect the transfer of the deceased broker's property interests as provided by IC 29 and other laws of succession. As added by Acts 1979, P.L.248, SEC.1. Amended by P.L.127-2012, SEC.25; P.L.116-2015, SEC.11.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/25Fetched: 10/17/2026