Indiana License Law Reform
A major bill has been passed by the Indiana Legislature and signed by the Governor, paving the way for reform in Indiana’s License Laws. This legislation will move Indiana to a single licensure state. By June 30, 2014, all salespersons licensees must convert to brokers. Please review the key information below. ICBR will keep you updated of future developments regarding this issue.
- All current real estate salespersons will transition to brokers with a 24-hour broker transition course to be completed by July 1, 2014. This course will count for required Continuing Education (CE) from 2012-14. The broker transition course will be tested.
- The term “Principal Broker” will be replaced with “Managing Broker.”
- An individual who is a “Principal Broker” on June 30, 2014 becomes a “Managing Broker” on July 1, 2014.
- The current two-year renewal period for real estate licenses will be extended to three years.
- Continuing education for all licenses will be 12-hours per year (more details to follow).
- Managing Brokers must dedicate at least 4-hours of continuing education each year to the necessary business and management skills and legal knowledge needed to be a managing broker (more details to follow).
What does this mean NOW for my CEU’s?
- Current salesperson licenses expire June 30, 2014. The completion of the Broker Transition Course will satisfy your CE requirement.
- Current broker license holders must fulfill 16-hours of CE under the previous requirements, which include 6-mandatory and 10-elective credits.
- In addition, current broker license holders will also be required to complete 8-hours of continuing education between July 1, 2013 – June 30, 2014 (this requirement can be met at the 2014 Indiana Commercial Real Estate Conference).
What does this mean for existing licenses?
- If you are currently a salesperson, you will have until July 1, 2014 to complete the 24-hour broker transition course and apply for your broker’s license.
- If you are currently a broker, your license is now active until June 30, 2014.
- If you are currently a Principal Broker, you will be grandfathered in and will be called a Managing Broker on July 1, 2014.
What are the requirements for new licensees effective July 1, 2014?
- Minimum education requirement of a high school diploma or GED.
- For new brokers, the required curriculum consists of 90-hours of pre-licensing education to be determined by the commission, with at least three written examinations during the course.
- Requires 30-hours of post-licensing education within the first two years of practicing for all new brokers who are licensed after July 1, 2014. This post-licensing education fulfills the CE requirement.
- If a broker’s license is placed in referral prior to completing the 30-hour post-licensing education requirement, the broker must complete the 30-hours prior to being removed from referral status.
- Requires that for at least two years after being issued a broker’s license, the license must be assigned to a Managing Broker.
- New licensees wanting to become a Managing Broker must still have their license assigned to a Managing Broker for at least two years. In addition, must also complete a 24-hour broker management course approved by the commission.
What if my license is currently inactive?
- Licensed salespersons must complete the 24-hour broker transition course prior to reactivating their license.
What if my license is currently in referral?
- Licensed salespersons automatically become brokers after June 30, 2014 but cannot perform the functions of a broker beyond making referrals.
- Licensed salespersons must complete the 24-hour broker transition course prior to performing the functions of a broker beyond making referrals (please be aware that the 24-hour broker transition course will not be around long-term).
What happens if I’m currently a salesperson, but fail to complete the Broker Transition Course by June 30, 2014?
- If you currently hold a salesperson license, and fail to complete the broker transition course and apply for your broker’s license by June 30, 2014, your license will become inactive. You will then be required to complete the 90-hour pre-licensing course in order to restore your license status.