Broker and real estate agent: Becoming a Managing Broker in Indiana

Becoming a Managing Broker in Indiana requires holding an active broker license for at least 3 years, completing a 24-hour managing broker course, and passing both portions of the Indiana real estate broker exam through Pearson VUE. The Managing Broker designation allows a licensed broker to open and operate an independent brokerage, supervise affiliated brokers, and hold a sole proprietor license. The relationship between a broker and REALTOR® designations is also relevant: a managing broker is a state-regulated license tier, while REALTOR® is a voluntary membership designation through the National Association of REALTORS® (NAR).

What is a Managing Broker in Indiana?

A Managing Broker in Indiana is a licensed broker who has met additional experience, education, and examination requirements to qualify for brokerage ownership and supervisory roles. Indiana uses "broker" as its standard license title for all real estate professionals, including those at the entry level, so the Managing Broker designation is the state's mechanism for distinguishing brokers authorized to own or manage a brokerage.

The Indiana Professional Licensing Agency (PLA) administers the Managing Broker eligibility process through its Real Estate Commission, as outlined on the Indiana PLA Real Estate Licensing Information page^[1].

Before pursuing Managing Broker eligibility, a licensee must first obtain an active Indiana real estate broker license.

How Indiana's broker license tiers and the REALTOR® designation relate

Indiana's license structure creates a clear hierarchy: all real estate licensees start as brokers, and those who meet additional requirements can earn Managing Broker eligibility to supervise or own a brokerage. The REALTOR® designation is a separate, voluntary NAR membership that any licensed broker can join, regardless of whether they hold Managing Broker eligibility.

The REALTOR® designation and the Managing Broker designation are independent of each other. A managing broker does not need to be a real estate agent to operate a brokerage, and a real estate agent does not need managing broker eligibility to practice real estate.

Managing Broker eligibility requirements

Indiana requires three qualifications for Managing Broker eligibility, as stated on the Indiana PLA Real Estate Licensing Information page^[1]: at least 3 years of holding an active broker license in the state, completion of a 24-hour managing broker course, and passage of both portions of the broker exam through Pearson VUE.

The 3-year experience requirement must be accrued as an active Indiana broker. The Bureau of Labor Statistics^[2] notes that most states require at least 2 years of experience for broker licensure, but Indiana requires 3 years for the Managing Broker designation specifically.

The 24-hour managing broker course

The 24-hour managing broker course is a state-approved education requirement that candidates must complete before applying for Managing Broker eligibility. Candidates must obtain a Certificate of Completion from the course, which is uploaded as part of the eligibility application.

State-approved providers offer the course in both online and in-person formats. The 24-hour requirement is distinct from the 90-hour pre-licensing course required for initial broker licensure, and it focuses on the supervisory and management responsibilities of the managing broker role.

Does the Managing Broker designation require an exam?

Yes, the Managing Broker designation requires passing both portions (national and state) of the Indiana real estate broker exam through Pearson VUE. The Indiana PLA^[1] lists the exam as the third requirement for Managing Broker eligibility, and the Pearson VUE Candidate Handbook^[3] (effective March 2025) confirms that managing broker candidates must pass both portions. Education resources published before March 2025 may not reflect this requirement.

The exam is the same broker exam taken by new license applicants, administered under the series code ReIN-Broker. It consists of 145 total questions with a 240-minute time limit, and the passing score is 75 on a scaled score set by the IPLA. The exam fee is $55 per attempt.

Managing broker candidates who previously passed the broker exam for their initial license may need to retake it if their prior score has expired. Exam results are valid for 1 year from the date of passing, per the Pearson VUE Candidate Handbook^[3].

How to apply for Managing Broker eligibility

The Managing Broker eligibility application is submitted through the PLA's MyLicense One online portal. Candidates must upload their Certificate of Completion from the 24-hour managing broker course as part of the application, according to the Indiana PLA^[1].

After passing the broker exam, candidates must upload the exam pass sheet using the "Upload Additional Documentation" action item on their linked Real Estate Broker license in MyLicense One. The PLA reviews the application once all three requirements are documented.

Applications not submitted with all requirements within 1 year of filing are considered abandoned, and a resubmission is treated as a new application.

What a Managing Broker can do in Indiana

A Managing Broker in Indiana can open and operate an independent brokerage, supervise affiliated brokers, and hold a sole proprietor real estate license. The designation is required for anyone who wants to own a Broker Company or serve as the designated managing broker for an existing brokerage.

The Indiana PLA^[1] charges a $50 Broker Company application fee and requires the company to designate a Managing Broker with an active Indiana broker license and Managing Broker eligibility. Sole proprietor status also requires Managing Broker eligibility.

Indiana state law requires written listing and buyer agency agreements between brokers and their clients, effective July 1, 2024, per the Indiana PLA Real Estate Home page^[4]. Managing brokers are responsible for ensuring their affiliated brokers comply with this requirement.

The Bureau of Labor Statistics^[2] reports that the median annual wage for real estate brokers was $72,280 in May 2024, and 54% of brokers were self-employed. Managing brokers who own brokerages typically earn income from both their own transactions and a share of their affiliated brokers' commissions.

Managing brokers serve as the sponsors that entry-level brokers must affiliate with to activate their licenses.

Continuing education for managing brokers

Managing brokers must complete 4 hours of managing broker-specific continuing education annually, as outlined in 876 IAC 7-5-2 and stated by the Indiana PLA^[1]. This requirement is part of the broader annual CE obligation that applies to all Indiana brokers.

The managing broker CE hours must be completed alongside the general CE hours required of all brokers. Failure to complete the required CE can prevent license renewal.

Out-of-state brokers and Managing Broker eligibility

Indiana does not have real estate license reciprocity agreements with any state, according to the Indiana PLA Real Estate Home page^[4]. Out-of-state licensees may apply for an Indiana broker license via endorsement, which involves a case-by-case review of whether the other state's requirements are equivalent to Indiana's.

The experience requirement for Managing Broker eligibility must be accrued as an active Indiana broker. An out-of-state broker who obtains an Indiana license through endorsement would need to practice as an active Indiana broker before qualifying for the Managing Broker designation. Endorsement candidates for the broker license take only the state portion of the exam, per the Pearson VUE Candidate Handbook^[3].

Next steps

To begin the Managing Broker eligibility process, confirm that you have held an active Indiana broker license for at least 3 years. Then enroll in a 24-hour managing broker course from a state-approved provider, schedule the broker exam through Pearson VUE, and submit the Managing Broker Eligibility Application through your MyLicense One account with all required documents. The Indiana PLA^[4] provides licensing resources and contact information on its website.