Indiana Real Estate Commission Statutes and Rules Practice Test 2025 – Comprehensive Exam Prep

An "unlawful practice" in Indiana real estate transactions is defined as conduct that involves fraud or misrepresentation. This includes providing false information, misleading potential buyers or sellers, or engaging in deceptive practices to gain an advantage in a transaction. The laws governing real estate transactions are designed to protect consumers and maintain the integrity of the market. Therefore, any actions that involve dishonesty or deception violate these standards and are considered unlawful.

In contrast, ethical advertising, flexible commission structures, and offering free consultations are legitimate practices within the industry. Ethical advertising promotes transparency and honesty, which are essential for maintaining trust with clients. Flexible commission structures allow real estate professionals to negotiate terms that work for both themselves and their clients. Offering free consultations can serve as a way to assist clients in understanding the market and making informed decisions without any obligation. These practices support ethical conduct and do not fall under the definition of unlawful practices.