Recently Senate Bill 275 was adopted into Indiana's legislature. This new bill will bring dramatic changes to license law in Indiana. It raises the bar for not only current real estate licensees, but new licensees as well with more targeted and relevant pre and post-licensing education as well as continuing education. This legislation was not forced up on us by government, but industry driven. These changes will go into effect June 30, 2014. 

Please read below or download this flyer for a comprensive Q & A on what changes will be occurring and what you need to do to comply. 

OVERVIEW

What major changes are being made to Indiana real estate license law?

As of July 1, 2014…

  • Eliminates the salesperson license
    • Those entering the profession will do so as brokers
    • Those currently licensed as a salesperson must upgrade their license to broker status by passing a 24-hour broker transition course
      • The broker transition course fulfills a salesperson’s continuing education requirement during this transition period
  • Eliminate the term principal broker
    • Those currently licensed as a broker and designated a principal broker will be known as a managing broker
  • All licensees are put on the same license renewal cycle
    • Extended by 1 year
    • Have same continuing education requirement, 36 hours over 3 years with a minimum of 12 specific hours per year determined by the Indiana Real Estate Commission according to license type
  • Increased amount of education needed to enter the profession

CURRENT SALESPERSONS

I’m currently a licensed salesperson, what do I need to do by July 1, 2014?

  • Upgrade license to broker status by taking and passing the 24-hour broker transition course
    • Transition course available through GNIAR monthly from January through June 2014
    • Transition course is offered online through RECP
    • Course will serve as required continuing education for salesperson licensees for the period beginning of July 1, 2012 and ending June 30, 2014
  • Upon completion and passing of course, make application to the state of Indiana for broker license
    • Must submit proof of completing the course along with pay appropriate fees

I’m currently a licensed salesperson, what happens if I do not transition by July 1, 2014?

  • If a salesperson does not complete the broker transition course and get their license upgraded to broker status by IPLA prior to June 30, 2014, he/she will be left without a valid license. The individual will be required to take a 90-hour pre-licensing course before completing another transaction.

CURRENT BROKERS

I’m currently a licensed broker, what do I need to do by July 1, 2014?

  • Licensed brokers are being referred to as legacy brokers
  • Legacy brokers must complete 24 hours of continuing education prior to the new license renewal deadline of June 30, 2014 including:
    • 16 hours of old curriculum, 6 mandatory and 10 elective
    • 8 additional hours, 2 of which must address the legislative changes (for example: GNIAR’s License Law Update: Senate Bill 275 class)
  • Know that by July 1, 2014, the term principal broker is eliminated and replaced with managing broker
  • Current brokers’ licenses cannot be renewed until a 60-day window of expiration
  • Notification to renew license should occur around April 2014

I’m currently a licensed broker, what do I need to do to open my own office after July 1, 2014?

  • Those wanting to go out on their own must:
    • Have their broker license assigned to a Managing Broker for a minimum of two years
    • Take and pass a 24-hour broker management course

NEW LICENSEES

I’m entering the real estate profession, what qualifications do I need before July 1, 2014?

  • Must be 18 years of age
  • Take and pass a 54-hour pre-licensing salesperson course approved by the state of Indiana
  • Take and pass a state administered exam
  • You will have until June 30, 2014 to upgrade your license to broker status
    • Take and pass 24-hour broker transition course
    • Make application to the state for a broker license
  • As of July 1, 2014, all licensees are on the same license renewal cycle, which extended by 1 year
  • All licensees must take 36 hours over 3 years with a minimum of 12 specific hours, determined by the Indiana Real Estate Commission, per year

I’m entering the real estate profession, what qualifications do I need after July 1, 2014?

  • Must be 18 years of age
  • Have a high school diploma or GED
  • Take and pass a 90-hour pre-licensing broker course from a state approved provider
  • Take and pass a state administered exam
  • Have your broker’s license assigned to a managing broker for a minimum of 2 years
    • In order to open own office in future
  • Take and pass 30 hours of post licensing education from a state approved provider during the first 2 years of licensure in lieu of continuing education
  • As of July 1, 2014, all licensees are on the same license renewal cycle, which extended by 1 year
  • All licensees must take 36 hours over 3 years with a minimum of 12 specific hours, determined by the Indiana Real Estate Commission, per year

SALESPERSONS IN REFERRAL

My salesperson license is currently in referral and I want to keep it in referral, what do I need to do by July 1, 2014?

  • Those with a salesperson license in referral on June 30, 2014, will have a broker license in referral the next day on July 1, 2014 provided they have applied for renewal of the license
  • These salespersons are not required to complete continuing education, but must renew their license as usual

My salesperson license is currently in referral and I want to reactive it, what do I need to do by July 1, 2014?

  • In order to reactive a license and perform the functions of a broker beyond making referrals, an individual must take and pass 24-hour broker transition course
  • Make application to the state of Indiana for a broker license
  • If you successfully reactive your license on or after July 1, 2014, regardless of whether or not you started with a salesperson or broker license, your continuing education requirements will be different than when you first earned your license
    • As of July 1, 2014, all licensees are on the same license renewal cycle, which extended by 1 year
    • All licensees must take 36 hours over 3 years with a minimum of 12 specific hours, determined by the Indiana Real Estate Commission, per year

BROKERS IN REFERRAL

My broker license is currently in referral and I want to keep it in referral, what do I need to do by July 1, 2014?

  • Those with a broker license in referral on June 30, 2014, will still have a broker license in referral the next day on July 1, 2014
  • Broker in “referral” status will be issued a new license number, along with all other brokers

My broker license is currently in referral and I want to reactive it, what do I need to do by July 1, 2014?

  • Make application to the state of Indiana for a broker license
  • If you successfully reactive your license on or after July 1, 2014, regardless of whether or you started with a salesperson or broker license, your continuing education requirements will be different than when you first earned your license
    • Will not need to complete the broker transition course, but will have to complete the required continuing education for the previous renewal cycle to reactivate
    • As of July 1, 2014, all licensees are on the same license renewal cycle, which extended by 1 year
    • All licensees must take 36 hours over 3 years with a minimum of 12 specific hours, determined by the Indiana Real Estate Commission, per year

Sources include: Indiana Professional Licensing Agency, Indiana Real Estate Commission and Indiana Association of REALTORS®