How to Become a Real Estate Managing Broker in Indiana

Have you considered taking the next big step in your Indiana real estate career by becoming a managing broker? 

As a managing broker, you can run your own brokerage, supervise other brokers, and significantly increase your leadership role in the industry. In this guide, we’ll walk you through everything you need to know—eligibility, education, and the application process—to obtain your managing broker designation in Indiana. Let’s get started!

Steps to Become a Managing Broker in Indiana

If you’re looking to upgrade from a standard broker to a managing broker license in Indiana, here’s a simplified overview of the process:

1. Hold a Valid Broker License for Two Years: You must have at least two years of active experience as a licensed real estate broker in Indiana.
2. Fulfill Experience Requirements: Meet the experience criteria set by the Indiana Real Estate Commission (IREC).
3. Complete the 24-Hour Managing Broker Course: Enroll in and finish the required 24-hour Managing Broker Responsibilities course.
4. Pass Your Final Exam: If your course provider requires it, you’ll need to pass the final exam.
5. Submit Your Application: Finally, submit your application along with the fee to the Indiana Professional Licensing Agency (IPLA).

These steps are crucial for upgrading to a managing broker role, and each one comes with its own set of guidelines.

1. Hold a Valid Indiana Real Estate Broker License for At Least Two Years

To become a managing broker in Indiana, you must first be a licensed real estate broker with at least two years of active experience. This requirement ensures you have the necessary industry knowledge to supervise other brokers.

Tip: Spend these two years building a solid transaction history, developing leadership skills, and growing your network. A strong track record will set you up for success as a managing broker.

2. Meet the Experience Requirements

The Indiana Real Estate Commission may have specific experience criteria beyond just the two-year requirement. This can include:

• Active Practice: Demonstrating that you’ve actively engaged in real estate sales, listings, or property management.
• Compliance: While maintaining a clear disciplinary record is essential for professional standing, the specific eligibility criteria for managing broker status do not explicitly list a clean disciplinary record as a requirement.

It's advisable to review the latest guidelines provided by the Indiana Professional Licensing Agency (IPLA) to ensure you meet all eligibility criteria for managing broker status. Maintaining accurate records of your transactions and a professional reputation will support your application process.

3. Complete the 24-Hour Managing Broker Responsibilities Course

To qualify as a managing broker, you must complete an additional 24-hour Managing Broker Responsibilities course approved by the state of Indiana. This specialized course covers:

• Advanced real estate laws and regulations
• Brokerage supervision and leadership
• Risk management and ethics
• Office policy development
• Best practices for training and mentoring brokers

4. Pass the Course Final Exam

Once you’ve completed the coursework, you may need to pass a course final exam to earn your course completion certificate. Here’s what to expect:

The passing score varies by course provider but is usually around 75% or higher.

The exam is usually administered online or in-person, depending on the course format.

Once you pass, you’ll receive a certificate of completion, which you need to submit with your Managing Broker license application.

5. Submit Your Managing Broker Application and Fee

Once you’ve completed the experience requirement, 24-hour course, and received your certificate, you can apply for your managing broker license with the Indiana Professional Licensing Agency (IPLA). Here’s what you’ll need:

1. Submit the Online Application: Complete the form on IPLA’s portal.
2. Supplemental Form (if applying for active status): Upload this form with your application or update it later.
3. Pay the $60 Application Fee (non-refundable).
4. Provide Documentation (if applicable): Submit explanations and documents for criminal history, disciplinary actions, or name changes.
5. Proof of Course Completion: Upload your 24-hour course certificate.
6. Licensing Exam Score Report: Submit your original score report from Pearson VUE.
7. Verification of Licensure: Provide verification of licensure from other states, if applicable.
8. Broker Information (for active status): Include the name and license number of your broker or brokerage company.

Once submitted, the IPLA usually processes your application in a few weeks, and after approval, you’ll officially be a managing broker.

FAQs About Becoming a Managing Broker in Indiana

Transitioning from broker to managing broker raises important questions about the benefits, timeline, and responsibilities. Here are answers to some common questions:

Why Become a Managing Broker in Indiana?

Becoming a managing broker offers several key advantages:

• Leadership Role: You’ll have the authority to supervise other brokers, influence office culture, and establish best practices.
• Increased Earnings: Managing brokers typically earn a share of the commissions generated by the brokers they oversee.
• Greater Autonomy: You can run your own brokerage, set policies, and guide the business’s strategic direction.

If you’re ready for more responsibility, enjoy leading others, and want to increase your income, becoming a managing broker may be the ideal career step.

How Fast Can You Become a Managing Broker?

Here’s a quick timeline:

• 2 Years: You must hold an active real estate broker license for at least two years.
• 24-Hour Course: Completing the 24-hour managing broker course generally takes 2-4 weeks, but you can accelerate it with an intensive program.
• Application Processing: After submitting your application and materials, it typically takes the IPLA 1-3 weeks to process.

Overall, expect at least two years to meet the broker license requirement, followed by several weeks for the course and application process. Your pace will determine how quickly you complete these steps.

How Much Do Managing Brokers Make?

Managing brokers in Indiana generally earn more than standard brokers. Compensation varies based on experience, location, and the brokerage’s structure. Here’s a rough estimate:

• Entry-Level Managing Broker: The starting salary for managing brokers is generally about $82,830 annually.
• Mid-Level Managing Broker: With additional experience, salaries typically range between $103,326 and $127,184 per year.
• Top-Tier Managing Broker: Experienced managing brokers can earn between $148,907 and $219,293 annually.

Managing brokers often enjoy additional compensation through benefits like profit-sharing and commissions from the brokers they oversee, adding to their overall earnings.

How Much Does a Managing Broker License Cost?

The total cost to become a managing broker can vary depending on the course provider and additional fees. Below is a rough breakdown:

• 24-Hour Managing Broker Course: $200 - $300
• Course Final Exam Fee (if separate): Some providers include the exam fee in the course price. If charged separately, fees can be up to $50. It's advisable to confirm with your chosen provider.
• Application Fee: $60 
• Additional Costs: Potential brokerage setup costs if you plan to start your own firm

Total Estimated Cost: $260 to $450 (excluding any costs related to business or office setup). Be sure to check with the Indiana Professional Licensing Agency and your course provider for the most up-to-date fees.

What’s the Difference Between a Broker and a Managing Broker?

In Indiana, everyone starts as a real estate broker after completing a 90-hour pre-licensing program and passing the standard licensing exam. A managing broker is an experienced broker who has:

1. Maintained an active broker license for at least two years
2. Completed an additional 24-hour Managing Broker Responsibilities course
3. Applied for and received managing broker status from the state

As a managing broker, you have expanded responsibilities, including the ability to run a brokerage office and supervise other brokers. This role typically comes with greater autonomy, leadership duties, and earning potential.

Does Indiana Have a Managing Broker License Reciprocity Agreement?

Indiana does not offer a broad reciprocity agreement specifically for managing brokers. However, some states provide partial reciprocity or recognize aspects of your existing license. If you hold an out-of-state managing broker license and wish to practice in Indiana, you may need to:

1. Verify you have an active broker license in good standing
2. Complete any Indiana-specific education requirements
3. Apply for reciprocity through the IPLA, which may involve submitting documentation or taking an Indiana-specific course

Contact the Indiana Professional Licensing Agency for the most current details on reciprocity or license recognition.

Final Thoughts on Becoming a Managing Broker in Indiana

Stepping into a managing broker role in Indiana can significantly elevate your real estate career. You’ll enjoy more autonomy, leadership opportunities, and the potential for higher earnings. 

Once you’ve met the broker experience requirement, the path is straightforward: complete the 24-hour course, pass your provider’s final exam (if required), and submit your application to the state.