Free Iowa Real Estate Practice Exam Questions (January 2025) 40+

Commingling is when a licensee mixes funds held in care for a client with their own funds.

Jackie is responsible. It is up to each and every licensee to track their own continuing education.

In Iowa, real estate trust accounts must be interest bearing, and all interest earned is transferred quarterly to the treasurer of state. There are a few exceptions but only with property management or rental accounts and even then, a non interest bearing account would still need to be connected to an interest bearing account.

This transaction would be considered a net listing and is illegal in the state of Iowa.

All of the following actions are allowed aside answering any questions on title, financing, or closing. Unlicensed assistants are not permitted to answer any questions on title, financing, or closing (other than time and place). Per Iowa Codes: licensees; permitted and prohibited activities. 193E—7.13

Agency disclosure must be made verbally by the agent prior to the agent providing specific assistance to potential customers. If an agent is not meeting face-to-face, then the agent should email or mail a disclosure to the potential customer.

Placing a sign on any property offering it for sale or lease without the written consent of the owner or the owner’s authorized agent is a violation of Iowa Law. It's essential agents get written permission before they put down a for-sale sign.

All of the above. If you are representing a seller the following would be considered “confidential information” per Iowa Law: Information that could place the seller at a disadvantage, whether the seller is willing to accept less than the asking price, the seller’s motivating factors, whether the seller will agree to terms different from those offered, the seller’s real estate needs, and the seller’s financial information.

All of the following actions are prohibited aside from placing advertisements in magazines, newspapers, and other media as directed by the supervising broker. Unlicensed assistants can in fact do that. Per Iowa Codes: licensees; permitted and prohibited activities. 193E—7.13

The buyer’s property interest preference is NOT considered confidential information. If you are representing a buyer the following would be considered “confidential information” per Iowa Law: Information that could place the buyer at a disadvantage, whether the buyer is willing to pay more than the asking price, the buyer’s motivating factors, whether the buyer will agree to terms different from those offered, the buyer’s real estate needs, the buyer’s financial information.

A holographic will is a will or testament that has been entirely handwritten and signed by the testator. In Iowa, holographic wills are not considered legal.

Upon obtaining a listing, a broker or licensed salesperson is always obligated to give the seller a legible copy of the written listing agreement.

In Iowa you can sell as much real estate as you’d like as long as you are doing it legally. Establishing a net listing however, is not legal in the state of Iowa while open listings are.

Put simply, the purpose of the Iowa License Law and Regulations is to protect the public.

Per Iowa licensing law, Iowa Real Estate Licensees are required to take 36 continuing education hours every renewal period.

All of the following actions are prohibited aside from independently hosting open houses for tours attended by licensed brokers and salespersons only. Unlicensed assistants can in fact host an open house but ONLY for licensed brokers and salespersons. No members of the public are permitted or it would constitute as license permitted activity. Per Iowa Codes: licensees; permitted and prohibited activities. 193E—7.13

None, all agents and brokers are required to complete required continuing education.

Per Iowa law, listing agreements can be transferred. In order to do so they must have the written consent of ALL parties.

Errors and omissions insurance is a type of professional liability insurance that protects agents against claims of inadequate work or negligent actions.

Seven days. If a license is revoked, suspended, restricted, or voluntarily surrendered, the licensee must immediately notify the licensee's broker within seven days.

The only way salespersons or broker associates can advertise under their own names is if their are the owners of the property they are advertising. The sale MUST be completely a for sale by owner transaction with no exceptions.

The commission is authorized to issue a cease and desist order and to impose a civil penalty of up to the greater of $10,000 or 10 percent of the real estate sale price against any person who is not licensed by the commission but who acts in the capacity of a real estate broker or salesperson, per Iowa Code 193E—21.1(17A,543B).

The regulations apply to certain houses as determined by the federal government, which is any housing built prior to 1978.

If a licensee is found guilty of misrepresentation: his or her license could be revoked, he or she may be fined up to $2,500, and he or she may be required to take additional education or training. Misrepresentation is no joke.

The Iowa Civil Rights Act prohibits discrimination in housing based on any of these 12 characteristics: race; color; national origin; religion or creed; sex; sexual orientation; gender identity; disability, mental or physical; familial status. Although some local jurisdictions in Virginia do have some additional protected classes, such as age or sexual orientation; the only state-wide protected class other than the 7 federal classes is elderliness.

While Isaac would be at fault for his violation. Isaac and Larry would both be in trouble and at fault since Larry was aware of the violation and did not report it. It is Iowa law for any brokers to report any violations immediately to the commission.

All interest earned in a real estate trust account must be transferred quarterly to the Iowa treasurer of state.

A fiduciary relationship is one in which the agent is held in a position of special trust and confidence by the principal.

The Iowa Real Estate Commission administers and enforces the laws of the state relating to real estate activities. The real estate commission conducts its business in order to protect the public interest. Think of the commission like the executive branch of the federal government. The commission is in charge of enforcing Iowa real estate law, while different parts of the government do other aspects like writing and creating laws.

Of course he is not, with or without his tenants approval he cannot deny someone housing just because of a disability. Under Iowa Fair Housing Law you cannot deny housing to qualified people with disabilities plain and simple.