Free Iowa Real Estate Practice Exam

Q1.Priya contracts to sell her property to a buyer. Before closing, Priya changes her mind and refuses to convey. Which remedy allows the buyer to compel Priya to complete the sale?

• A.Specific performance — a court order compelling Priya to complete the conveyance
• B.Liquidated damages — the buyer collects a pre-set penalty amount
• C.Rescission — the buyer cancels the contract and receives damages
• D.Arbitration — the parties submit to a binding arbitration decision

Q2.A broker is listing a pre-1978 residential property. The seller discloses no known lead-based paint hazards. Under the EPA/HUD Lead-Based Paint Disclosure rule, which of the following represents the broker's minimum compliance obligation?

• A.The broker must ensure that buyers receive the EPA-approved lead hazard information pamphlet, that the seller completes the required disclosure form, and that buyers are given a 10-day opportunity to conduct a lead-based paint inspection before being obligated under the contract.
• B.Because the seller has no known hazards to disclose, the broker has no further obligation under the Lead-Based Paint Disclosure rule.
• C.The broker must order a certified lead inspection and include the results in the listing agreement before the property can be marketed.
• D.The broker's only obligation is to attach the EPA pamphlet to the MLS listing; no written disclosure form is required if the seller has no known hazards.

Q3.According to Iowa Code Chapter 543B, how many members make up the Iowa Real Estate Commission?

• A.Five members
• B.Seven members
• C.Nine members
• D.Eleven members

Q4.An Iowa salesperson represents a seller who instructs the salesperson to 'not show the home to anyone with kids.' The salesperson follows these instructions and declines to show the property to a family with minor children. Under the Iowa Civil Rights Act, who bears legal liability for this discriminatory act?

• A.Only the seller, because the salesperson was following client instructions.
• B.Only the salesperson, because licensees are independently responsible for their own conduct.
• C.Both the seller and the salesperson may be held liable for discriminatory conduct.
• D.Neither party, because familial status is not a protected class under the Iowa Civil Rights Act.

Q5.Under the Housing for Older Persons Act (HOPA), a community can legally exclude families with children only if it meets one of these qualifying tests:

• A.Any community can exclude children if its CC&Rs say so
• B.(1) HUD-designated 62-and-older housing, (2) 55-and-older with at least 80% of occupied units having one resident 55+ AND published policies AND age verification, OR (3) federally funded elderly housing
• C.Any community over 30 years old qualifies automatically
• D.Communities only need a majority of residents over 50

Q6.Under Iowa Code Chapter 543B, when a brokerage uses designated agency in an in-house transaction, what is the role of the supervising broker?

• A.The broker becomes an undisclosed dual agent for both parties
• B.The broker steps out of the transaction entirely and has no responsibilities
• C.The broker may act as a dual agent overseeing the transaction while the designated agents each represent their respective clients
• D.The broker must represent only the seller because the seller signed the listing agreement first

Q7.Under Iowa Code § 543B.46, a licensed Iowa broker who operates a branch office must ensure which of the following conditions is met regarding that branch location?

• A.The branch office must be registered with the Iowa Real Estate Commission and supervised by a licensed broker whose license is displayed at that location.
• B.The branch office may operate under the supervision of an experienced salesperson if the managing broker is unavailable for more than 30 days.
• C.A separate trust account is mandatorily required for each branch office regardless of transaction volume.
• D.The branch office must maintain its own errors-and-omissions insurance policy separate from the main brokerage.

Q8.Under federal law, which statement about transfer taxes is most accurate?

• A.Transfer taxes are regulated by RESPA and must be disclosed on the Closing Disclosure
• B.Transfer taxes are a state and local matter, not regulated by federal law
• C.Transfer taxes are prohibited by the Truth-in-Lending Act
• D.Transfer taxes must be paid by the buyer under Fair Housing Act requirements

Q9.Which of the following activities would require a real estate license under Iowa Code Chapter 543B?

• A.A homeowner selling their own primary residence without the assistance of a licensee
• B.A trustee selling real property as part of the administration of a court-supervised trust
• C.A licensed auctioneer who, in the regular course of their auction business, auctions real estate for others for compensation
• D.A resident manager of an apartment complex who rents units in the building where they reside

Q10.Which community type is legally permitted to restrict residency to adults and exclude families with children under the Fair Housing Act?

• A.Any rental property where the owner personally lives on-site
• B.Qualified 55+ or 62+ senior housing communities that meet HUD's published requirements
• C.Any private club that restricts its membership to adults
• D.Any landlord who owns fewer than 4 rental units

Q11.Two friends purchase an investment property as joint tenants. One friend dies. What happens to her ownership interest?

• A.Her interest passes to her heirs through her estate
• B.Her interest is split equally among all surviving relatives
• C.Her interest is sold by the estate and proceeds distributed
• D.Her interest automatically transfers to the surviving joint tenant through the right of survivorship, bypassing probate

Q12.Under the Iowa Civil Rights Act, a person who believes they have been the victim of housing discrimination must file a complaint with the Iowa Civil Rights Commission within what timeframe from the date of the alleged discriminatory act?

• A.180 days
• B.One year
• C.Two years
• D.90 days

Q13.Under RESPA, which service provider is NOT required to provide a Loan Estimate to mortgage applicants?

• A.Hard money lenders making business purpose loans
• B.Commercial banks
• C.Credit unions
• D.Mortgage companies

Q14.A licensed Iowa salesperson tells a prospective buyer that a property is not in a flood zone, even though the salesperson has not verified this information and the property is, in fact, located in a designated flood zone. Under Iowa Code Chapter 543B, this conduct most likely constitutes:

• A.Acceptable behavior, because flood zone status is public information the buyer should independently verify
• B.A minor procedural error that requires only a written reprimand from the Iowa Real Estate Commission
• C.A prohibited misrepresentation that could subject the salesperson and supervising broker to disciplinary action
• D.A violation only if the salesperson intentionally lied, not if the error was made in good faith

Q15.An Iowa real estate licensee deliberately steers a Hispanic couple away from a predominantly white neighborhood toward a different neighborhood based solely on the couple's national origin. This practice is best described as:

• A.Blockbusting
• B.Redlining
• C.Steering
• D.Filtering