1. Under Iowa's appointed agency rules, who appoints the licensees who will separately represent the buyer and the seller?
Answer & explanation
Answer: A. Iowa Code 543B.59 lets the designated broker appoint affiliated licensees in writing to exclusively represent different clients in the same transaction.
2. A licensee's advertising must generally:
Answer & explanation
Answer: C. Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.
3. The three 12-hour practice courses required of original salesperson applicants must be completed within what time frame?
Answer & explanation
Answer: A. Current rules tie these courses to the application: they must fall within the 12 months before the application is postmarked or received. Older materials called them first-year post-license courses, which is why the after-licensure choice is tempting.
4. An Iowa broker wants to pay a commission earned by a salesperson who died before the sale closed. May the broker pay it?
Answer & explanation
Answer: D. Paying unlicensed persons is generally prohibited, but the statute excepts the estate of a deceased licensee whose license was valid when the commission was earned.
5. Iowa's seller disclosure statement under chapter 558A applies to transfers of property with how many dwelling units?
Answer & explanation
Answer: D. Chapter 558A covers transfers of real property with one to four dwelling units, whether by sale, exchange, installment contract, or other purchase.
6. What is the maximum civil penalty the Commission may impose on a licensee per violation?
Answer & explanation
Answer: B. Iowa Code 543B.48 allows civil penalties up to $2,500 per violation for licensees. $10,000 is part of the unlicensed-activity penalty formula.
7. An Iowa salesperson applicant who has passed the exam but not yet found a broker wants to be licensed on inactive status for now. What is the rule?
Answer & explanation
Answer: A. Iowa does not issue an original salesperson license on inactive status, and the designated broker's certification is part of the application. The other choices invent exceptions that do not exist.
8. A candidate passes the national portion but fails the state portion of the Iowa exam. What must the candidate do?
Answer & explanation
Answer: D. Each portion is scored separately, and a candidate retakes only the portion failed, provided the qualifying education has not expired. There is no mandatory six-month wait.
9. An Iowa licensee wants to buy a house listed by another brokerage for her own account. What does Iowa law require?
Answer & explanation
Answer: B. Under 543B.56(3), a licensee may not act for herself, immediate family, her brokerage, or an entity she has an interest in unless that interest is disclosed in writing to all parties. Although agency disclosure is not required when acting solely as a principal, the interest itself must still be disclosed.
10. A buyer's agent is about to negotiate on a listed property. What disclosure must the buyer's agent make to the listing licensee?
Answer & explanation
Answer: C. Iowa Code 543B.57(5) requires the buyer's licensee to inform the listing licensee of the agency relationship before negotiations begin. Who pays does not determine agency.
11. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:
Answer & explanation
Answer: D. Money belonging to others goes into a trust account; depositing it in an operating account is commingling.
12. What is the Iowa real estate transfer tax rate?
Answer & explanation
Answer: B. The tax is 80 cents for each $500 or fractional part of $500 of consideration in excess of $500. The $1.60 per $1,000 choice is close in rate but uses the wrong base and threshold and ignores per-$500 rounding.
13. In a life estate, the person who receives the property when the life tenant dies is the:
Answer & explanation
Answer: A. The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.
14. On a closing statement, the purchase price is a:
Answer & explanation
Answer: B. The seller receives the price (credit); the buyer owes it (debit).
15. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?
Answer & explanation
Answer: A. Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.
16. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?
Answer & explanation
Answer: B. Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.
17. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:
Answer & explanation
Answer: A. Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.
18. Mixing client trust funds with the broker's own business funds is:
Answer & explanation
Answer: B. Commingling client/escrow funds with the broker's operating funds is prohibited and grounds for discipline. Using those funds for personal purposes is conversion.
19. Two brokerages agree that one will work only on the east side of town and the other only on the west side. This is:
Answer & explanation
Answer: C. Dividing territories or customers among competitors eliminates competition and is illegal market allocation.
20. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):
Answer & explanation
Answer: D. 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.
21. Which statement about dual agency is correct?
Answer & explanation
Answer: D. Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.
22. A home sells for $400,000 with a 5% total commission. What is the total commission?
Answer & explanation
Answer: B. $400,000 x 0.05 = $20,000.
23. A life estate is measured by:
Answer & explanation
Answer: D. A life estate lasts for the duration of a specified person's life, then passes to the remainderman or reverts to the grantor. A fixed term describes an estate for years (a leasehold).
24. Which statement about FHA-insured loans is correct?
Answer & explanation
Answer: C. FHA loans are made by approved lenders and insured by FHA, with down payments as low as 3.5% and mortgage insurance premium (MIP) required on all FHA loans, for 1-4 family homes.
25. A salesperson receives an earnest money check from a buyer. The salesperson should:
Answer & explanation
Answer: C. The broker manages the trust account; licensees must promptly deliver trust funds to the broker.
Sources
Source verification pending. Confirm current requirements with your state regulator.