State Exam Prep – 65 Questions

Some acts excluded from real estate licensing law requirements include being the owner, spouse of the owner, purchaser, or another engaged by such person on a regular full-time basis.

Salesperson Jacob just sold a home to Bob and Sue Summers his out of state clients. He gave them the name of his insurance agent Sam Smith who wrote an insurance policy for them.  Sam called Jacob and said he had 2 tickets to the coming game for him and his wife and also thanked him for the business. Can Jacob accept this gift for an insurance referral he provided?

Agent Jerome works for ABC Realty and is talking with his neighbor about selling their home. The neighbors listed their home with competitor Homeland Realty about 4 months ago. The Homeland Realty sign is visible in the neighbor’s yard. The neighbors decided to approach Agent Jerome about relisting their home with him, They are very unhappy with the poor response they have gotten from their current listing. What should Agent Jerome do?

Which of the following must be a licensed real estate broker or salesperson in the state of Iowa?

Jim Smith owns a brokerage and is closing the doors for good. How should Broker Jim handle current listing clients?

When a real estate salesperson gives a listing presentation, at what time must a discussion about agency be made to the seller?

Duties to a customer include providing brokerage services honestly and in good faith.

Which of the following rises to the level of specific assistance and is not considered a ministerial act?

A licensee has received a notice of a hearing. The licensee must acknowledge receipt of the notice within:

Salesperson David sold a property when he was actively working for ABC Real Estate. He then left the company. His broker refused to pay him when the transaction closed. He filed a complaint with the Iowa Real Estate Commission. In this case, the real estate commission will:

If an agent’s license expires on December 31, and the licensee desires to become reinstated one year later, he or she must file an application, must pay the regular license fee, and may either retake and pass the real estate exam or satisfy all continuing education requirements and:

Jacob lives in Nebraska and wants to get his real estate license in Iowa. He has an office in Nebraska but wonders if he would have to open an office in Iowa as well? Does Jacob need an office in Iowa?

In Iowa, who administers Real Estate Licensing Law?

While serving on the Iowa Real Estate Commission members are allowed to hold other elective and appointed state and federal offices simultaneously.

A broker associate or salesperson who fails to keep the employing broker informed of his or her real estate related activities is subject to a maximum civil penalty of:

An applicant for a real estate license must pass the real estate licensing exam within 6 months of completing the 60-hour prelicensing course.

Joyce just moved. Does she need to notify the Iowa Real Estate Commission of her change of address?

Does Iowa use a replacement for title insurance?

Prior to the closing under what circumstances would it be a violation for the broker to release the earnest money payment?

According to the Iowa Real Estate Commission, an Iowa broker must establish a trust account that is:

An offer to purchase was signed and accepted on 7/7/2020. How long does the brokerage have to deposit the buyer’s earnest money check into the trust account?

Jessica and Jim placed an offer on a home they wanted to buy through their real estate agent Sam. The couple included a $1000 personal check for earnest money. Later that day Jim found out some unsettling news about his job. He and Jessica immediately notified Agent Sam that they were withdrawing their offer.  Thankfully the offer had not yet been accepted by the seller. When can Jessica and Jim expect to get their earnest money check back?

Emily received her real estate salesperson’s license on May 5th of 2020. When will Emily’s license expire and how many hours of continuing education will she need to renew her license to active status?

At 10 AM a consensual dual agent writes a $245,000 offer on a home he has listed. The dual agent calls the seller to set up an appointment to present the offer at 6 PM that evening. About 3 PM an agent from another brokerage drops off an offer on the same property for $252,000. The listing brokerage should:

Bryan is an agent with ABC Realty and has decided to change brokerages. Starting next month, he will be working for Homeland Realty. To prepare for this change Bryan has approached his listing clients and asked that they terminate their listing agreements with ABC Realty. He has provided them with new listing agreements for Homeland Realty and requested that they make the change. Is this activity permitted?

Is a licensed broker or salesperson allowed to create or use dual contracts for use in the sale of the same property?

Buyers Agent Bob was just advised that the offer to purchase he had submitted on behalf of a client had been accepted. He was in a hurry to leave town on vacation so he called his clients on the way out of town. He advised them that the offer had been accepted. He also let his clients know that he was going on vacation and would talk with them in 7 days. Did Bob miss a critical step in the handling of this purchase agreement?

A person does not need to be a licensed real estate salesperson or broker, at the time an incident occurred, to bring a court action for the collection of compensation.

Listing Agent Jessica procured a ready, willing, and able buyer for her listing client Bob. Seller Bob had accepted the buyer’s written offer and then changed his mind and withdrew his acceptance. Does Agent Jessica or her broker have any recourse in this situation?

When is a broker obligated to remove a “for sale” sign from a property?

Buyer/Brokerage agreements must be in writing to be enforceable.

Which of the following is legal in a listing agreement?

A broker entered into a listing agreement with a seller. Another broker, working with a buyer saw the property on the MLS. Who would the cooperating broker represent?

Salesperson Jennifer is thinking about hiring a personal assistant to help her with the day to day operations of her real estate business. Which of the following is true for support personnel?

Agent Minnie represented her listing client Wilma in the sale of her home to the exclusion of everyone else in her brokerage. Agent Minnie is acting as:

Doors of Des Moines Realty has legally entered into a consensual dual agency agreement with a buyer and seller. Agent Lisa is the dual agent handling both ends of the transaction. Agent Lisa can do which of the following:

What is Iowa’s Homestead Credit for?

Who can complete the Purchase Agreement, Groundwater Hazard Statement, and Declaration of Value forms?

The following statements are true regarding basic qualifications for a real estate license:

Three months after Jennifer purchased her home, the roof leaked during a thunderstorm. When the house was listed, the seller had told his listing broker about the roof leak and asked him not to mention it to any potential buyers. The broker had agreed. The broker’s defense is that no buyers asked him about the roof so he did not disclose the information about the leak. What recourse does Jennifer have now?

Does the lack of a Ground Water Hazard Statement invalidate the transfer of the deed to a property?

Iowa’s Groundwater Hazard Statement requires the transferor or their agents to disclose to the Department of Natural Resources information about:

Jennifer is excited about her new assistant Marisa. She instructed her to conduct an open house the following Sunday at 1 PM. Marisa said ok but quietly wondered if she should be having an open house on her own?

Exemptions to the Seller Disclosure Statement include:

Agent Jacob is working with a buyer and discovers that the home they are looking at has a basement that is prone to serious flooding. He discovered that the water has risen to the top of the basement stairs during heavy rains before. What should Agent Jacob do?

All of the following are protected under Iowa Fair Housing Laws except:

How long does a person have to file a housing discrimination charge?

Real estate brokerages that allow affiliated licensees to hire personal assistants must:

In Real Estate, what does agency refer to?

Which of the following is not an example of a ministerial act?

What is the mission of the Iowa Real Estate Commission?

Can a licensee work for more than one broker?

Amanda has an inactive real estate license. Does she have to carry Errors and Omissions insurance?

What happens to the salesperson’s real estate license upon issuance?

Andrew is considering getting his brokers license and opening his own brokerage. Will he have to open an office or can he just do everything virtually?

Members of the Iowa Real Estate Commission are:

Broker Jerimiah was working with a seller and decided to try something new. He created a listing agreement that stated the seller would receive $230,000 from the proceeds of the sale and any proceeds greater then $230,000 would go to him. What type of listing is this and is it legal in Iowa?