Free Iowa Math Practice Test — LicenseIQ

Question 1

A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

Accepted Answer

Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)

Question 2

The Commission audits a licensee's E&O coverage. Within what time must the licensee provide proof?

Accepted Answer

Proof is due within 20 calendar days of an audit request, and missing it is prima facie evidence of a violation. Thirty days applies to a separate proof-of-insurability notice.

Question 3

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 4

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 5

A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

Accepted Answer

Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)

Question 6

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 7

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 8

Which item is included on the Real Estate Commission's sample seller disclosure form?

Accepted Answer

The Commission's sample form includes a lead water service line item (yes, no, or unknown), reflecting the statute's lead service line definition that took effect January 1, 2026.

Question 9

Is proof of actual injury to a consumer required for the Commission to discipline a licensee for misleading or unethical conduct?

Accepted Answer

Iowa Code 543B.29 permits discipline for conduct that is misleading, deceptive, or unethical and harmful to the public, whether or not anyone was actually injured.

Question 10

An unlicensed person brokers the sale of a $380,000 home. What is the maximum civil penalty the Commission may impose?

Accepted Answer

The penalty for unlicensed activity is up to the greater of $10,000 or 10% of the sale price. 10% of $380,000 is $38,000, which exceeds $10,000.

Question 11

A licensee lets her E&O coverage lapse, receives a Commission audit notice, and buys a policy the next day. Which statement is correct?

Accepted Answer

The rules say coverage must be continuous, and buying a policy after receiving an audit notice does not prevent discipline. The 20-day period is only the deadline to respond.

Question 12

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 13

Within how many days must an Iowa licensee report a felony conviction to the Commission?

Accepted Answer

A felony conviction must be reported within 10 days. The conviction triggers immediate suspension pending a hearing held within 30 days, and failure to report is grounds for revocation.

Question 14

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 15

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 16

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 17

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 18

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 19

A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

Accepted Answer

LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)

Question 20

A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

Accepted Answer

Gallons needed = $168 / $4.20 = 40; remaining = 275 - 40 = 235 gallons; credit = 235 x $4.20 = $987.

Question 21

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 22

Which of the following is NOT itself formal discipline by the Iowa Real Estate Commission?

Accepted Answer

The disciplinary committee may issue a confidential cautionary letter, which the rules say is not discipline. Reprimands, probation, and civil penalties are sanctions.

Question 23

A sale falls through. The listing broker wants to keep part of the earnest money to cover the commission. What does the rule say?

Accepted Answer

If a transaction fails, the broker cannot keep any earnest money to cover a commission and must pursue the commission claim against the client separately.

Question 24

When a designated broker appoints one affiliate to represent the seller and another to represent the buyer in the same transaction, what is the designated broker's status?

Accepted Answer

The rules state that making an appointment does not, by itself, make the designated broker a dual agent. That is the point of appointed agency.

Question 25

Under Iowa's appointed agency rules, who appoints the licensees who will separately represent the buyer and the seller?

Accepted Answer

Iowa Code 543B.59 lets the designated broker appoint affiliated licensees in writing to exclusively represent different clients in the same transaction.

Iowa real estate math practice test

1. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

2. The Commission audits a licensee's E&O coverage. Within what time must the licensee provide proof?

3. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

4. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

5. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

6. When competing brokerages agree to charge the same commission rate, they commit:

7. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

8. Which item is included on the Real Estate Commission's sample seller disclosure form?

9. Is proof of actual injury to a consumer required for the Commission to discipline a licensee for misleading or unethical conduct?

10. An unlicensed person brokers the sale of a $380,000 home. What is the maximum civil penalty the Commission may impose?

11. A licensee lets her E&O coverage lapse, receives a Commission audit notice, and buys a policy the next day. Which statement is correct?

12. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

13. Within how many days must an Iowa licensee report a felony conviction to the Commission?

14. A broker received a 4.2% commission totaling $12,600. What was the sale price?

15. A home sells for $400,000 with a 5% total commission. What is the total commission?

16. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

17. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

18. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

19. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

20. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

21. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

22. Which of the following is NOT itself formal discipline by the Iowa Real Estate Commission?

23. A sale falls through. The listing broker wants to keep part of the earnest money to cover the commission. What does the rule say?

24. When a designated broker appoints one affiliate to represent the seller and another to represent the buyer in the same transaction, what is the designated broker's status?

25. Under Iowa's appointed agency rules, who appoints the licensees who will separately represent the buyer and the seller?

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