876 IAC 5 — ARTICLE 5. GENERAL PROVISIONS

TITLE 876 INDIANA REAL ESTATE COMMISSION

ARTICLE 5. GENERAL PROVISIONS

Rule 1

876 IAC 5-1-1 876 IAC 5-1-1 Authority; purpose

Rule 1. Authority; Purpose

876 IAC 5-1-1 Authority; purpose

Authority: IC 25-34.1-2-5

affected: IC 25-1-11; IC 25-34.1

Sec. 1. The fundamental and primary purpose of the commission is to safeguard the public interest through the following:

(1) Encouraging and requiring high standards of knowledge.

(2) Encouraging ethical practices.

(3) Disciplining of brokers who engage in dishonest, fraudulent, or criminal activities.

(4) Causing the discipline of persons who violate IC 25-1-11, IC 25-34.1, or this title.

(Indiana Real Estate Commission; 876 IAC 5-1-1; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

Rule 2

876 IAC 5-2-1 876 IAC 5-2-1 Definitions

Rule 2. Definitions

876 IAC 5-2-1 Definitions

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 1. The definitions in this rule apply throughout this title.

(Indiana Real Estate Commission; 876 IAC 5-2-1; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-2 876 IAC 5-2-2 "Branch manager" defined

876 IAC 5-2-2 "Branch manager" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 2. "Branch manager" means an individual broker who manages a branch office.

(Indiana Real Estate Commission; 876 IAC 5-2-2; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-3 876 IAC 5-2-3 "Branch office" defined

876 IAC 5-2-3 "Branch office" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 3. "Branch office" means a broker company's office other than its principal place of business.

(Indiana Real Estate Commission; 876 IAC 5-2-3; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-4 876 IAC 5-2-4 "Broker" defined

876 IAC 5-2-4 "Broker" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 4. "Broker" refers to a person who holds a valid broker license issued by the commission to practice real estate as described in IC 25-34.1-3-2.

(Indiana Real Estate Commission; 876 IAC 5-2-4; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-5 876 IAC 5-2-5 "Broker company" defined

876 IAC 5-2-5 "Broker company" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 5. "Broker company" means any business licensed as a broker to practice real estate as described in IC 25-34.1-3-2 whether as a sole proprietorship, partnership, limited liability company, or corporation. For sole proprietorships, the sole proprietor's individual broker license is the business license.

(Indiana Real Estate Commission; 876 IAC 5-2-5; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-6 876 IAC 5-2-6 "Commission" defined

876 IAC 5-2-6 "Commission" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-2-1

Sec. 6. "Commission", unless the context clearly requires otherwise, means the Indiana real estate commission established by IC 25-34.1-2-1.

(Indiana Real Estate Commission; 876 IAC 5-2-6; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-7 876 IAC 5-2-7 "Course approval" defined

876 IAC 5-2-7 "Course approval" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 7. "Course approval" means approval of a broker course granted under IC 25-34.1-5 and 876 IAC 2, which is not expired, suspended, or revoked.

(Indiana Real Estate Commission; 876 IAC 5-2-7; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-8 876 IAC 5-2-8 "License" defined

876 IAC 5-2-8 "License" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 8. "License" means a right to perform, for compensation, any of the acts provided in IC 25-34.1-3-2.

(Indiana Real Estate Commission; 876 IAC 5-2-8; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-9 876 IAC 5-2-9 "Licensee" defined

876 IAC 5-2-9 "Licensee" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 9. "Licensee" means a person who holds a valid broker license issued by the commission.

(Indiana Real Estate Commission; 876 IAC 5-2-9; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-10 876 IAC 5-2-10 "Licensing agency" defined

876 IAC 5-2-10 "Licensing agency" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 10. "Licensing agency" means the Indiana professional licensing agency.

(Indiana Real Estate Commission; 876 IAC 5-2-10; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-11 876 IAC 5-2-11 "Listing broker" defined

876 IAC 5-2-11 "Listing broker" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 11. "Listing broker" means a broker company who has a written contract with an owner, allowing the broker company to:

(1) sell;

(2) buy;

(3) trade;

(4) exchange;

(5) option;

(6) lease;

(7) rent;

(8) manage;

(9) list; or

(10) appraise;

real estate.

(Indiana Real Estate Commission; 876 IAC 5-2-11; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-12 876 IAC 5-2-12 "Managing broker" defined

876 IAC 5-2-12 "Managing broker" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-1-2

Sec. 12. "Managing broker" has the meaning set forth in IC 25-34.1-1-2.

(Indiana Real Estate Commission; 876 IAC 5-2-12; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-13 876 IAC 5-2-13 "Owner/seller" defined

876 IAC 5-2-13 "Owner/seller" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 13. "Owner/seller" means that person or persons of record who has an interest in the property or their duly authorized representative.

(Indiana Real Estate Commission; 876 IAC 5-2-13; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-14 876 IAC 5-2-14 "Person" defined

876 IAC 5-2-14 "Person" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 14. "Person" means:

(1) an individual;

(2) a partnership;

(3) a limited liability company; or

(4) a corporation.

(Indiana Real Estate Commission; 876 IAC 5-2-14; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-15 876 IAC 5-2-15 "Real estate" defined

876 IAC 5-2-15 "Real estate" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 15. "Real estate" means any right, title, or interest in real property.

(Indiana Real Estate Commission; 876 IAC 5-2-15; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-16 876 IAC 5-2-16 "Referral" defined

876 IAC 5-2-16 "Referral" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 16. "Referral" means the act of recommending or referring a sales lead to a broker.

(Indiana Real Estate Commission; 876 IAC 5-2-16; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-17 876 IAC 5-2-17 "Referral service" defined

876 IAC 5-2-17 "Referral service" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 17. "Referral service" means a company or part of a company or franchise system established for the purpose of recommending or referring client or customer leads to other brokers.

(Indiana Real Estate Commission; 876 IAC 5-2-17; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

876 IAC 5-2-18 876 IAC 5-2-18 "Selling broker" defined

876 IAC 5-2-18 "Selling broker" defined

Authority: IC 25-34.1-2-5; IC 25-34.1-2-5.1

Affected: IC 25-34.1-3-2; IC 25-34.1-5

Sec. 18. "Selling broker" means a broker company that:

(1) is acting on behalf of the buyer or tenant; and

(2) provides an accepted offer to purchase to the seller or accepted lease agreement to the landlord.

(Indiana Real Estate Commission; 876 IAC 5-2-18; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

Rule 3

876 IAC 5-3-1 876 IAC 5-3-1 Fee schedule

Rule 3. Fee Schedule

876 IAC 5-3-1 Fee schedule

Authority: IC 25-1-8-2; IC 25-34.1-2-5

Affected: IC 25-34.1-8-7.5

Sec. 1. (a) The fee schedule is as follows:

(1) Application for real estate broker license: $50

(2) Renewal of real estate broker license: $50

(3) Reassignment of license: $10

(4) Activation of inactive license: $10

(5) Application for continuing education course sponsor: $50

(6) Renewal of continuing education course sponsor: $50

(7) Application for continuing education course instructor permit: $10

(8) Renewal of continuing education course instructor permit: $10

(9) Application for real estate (prelicensing) school permit: $50

(10) Renewal of real estate (prelicensing) school permit: $50

(11) Application for prelicensing course instructor permit: $10

(12) Renewal of prelicensing course instructor permit: $10

(b) In addition to the fees required under subsection (a), the commission shall charge and collect ten dollars ($10) for the investigative fund under IC 25-34.1-8-7.5 for the issuance and renewal of a real estate broker license.

(c) All fees charged and collected under this rule shall be nonrefundable and nontransferable.

(Indiana Real Estate Commission; 876 IAC 5-3-1; filed May 22, 2014, 11:50 a.m.: 20140618-IR-876140061FRA, eff Jul 1, 2014; readopted filed Nov 19, 2020, 9:56 a.m.: 20201216-IR-876200513RFA; readopted filed Mar 21, 2024, 4:07 p.m.: 20240417-IR-876230829RFA)

Rule 4

876 IAC 5-4-1 876 IAC 5-4-1 Fines and civil penalties

Rule 4. Fines and Civil Penalties

876 IAC 5-4-1 Fines and civil penalties

Authority: IC 25-1-11-12; IC 25-34.1-2-5.1

Affected: IC 25-34.1

Sec. 1. (a) Unless otherwise established in this title, fines and civil penalties levied by the board are set at fifty percent (50%) of the statutory maximum. If no statutory maximum is set, the fine or civil penalty is set at one thousand dollars ($1,000).

(b) A fine or civil penalty levied under subsection (a) may be reduced or increased after consideration of the mitigating factors identified in subsection (c) and aggravating factors identified in subsection (d). No fine or civil penalty may be set at less than one hundred dollars ($100).

(c) Mitigating factors include the following:

(1) Inability to pay.

(2) Acknowledging responsibility for underlying conduct.

(3) Acts prior to the underlying conduct to prevent or reduce damage to the public.

(4) Likelihood that the underlying conduct will not recur.

(5) The underlying conduct resulted from provocation, stress, emotional problems, or other circumstances that might offer an explanation.

(6) Timely and voluntary disclosure of the conduct underlying the fine or penalty.

(7) Subsequent remedial acts deemed appropriate by the board.

(d) Aggravating factors include the following:

(1) The underlying conduct resulted in moderate damage to the public.

(2) The underlying conduct resulted in severe damage to the public.

(3) The underlying conduct involved dishonesty or deception.

(4) The underlying conduct occurred as part of an overall pattern of improper conduct.

(5) The underlying conduct was motivated by bias against a protected class.

(6) Previous board discipline.

(7) The underlying conduct involved a vulnerable member of the public, including an individual:

(A) less than twelve (12) years of age;

(B) more than sixty-five (65) years of age;

(C) with a disability; or

(D) under the licensee's care, custody, or control.

(8) Failure to cooperate in a consumer complaint investigation or board proceeding.

(9) Dishonesty during board proceedings.

(Indiana Real Estate Commission; 876 IAC 5-4-1; filed Apr 7, 2025, 1:34 p.m.: 20250507-IR-876240612FRA)