Free Iowa Real Estate Practice Exam

Q1.A salesperson receives an earnest money deposit of $5,000 from a buyer on a Friday afternoon after the broker's office has closed. According to Iowa Real Estate Commission rules governing trust accounts, what is the salesperson's required course of action?

• A.Deposit the funds into the salesperson's personal savings account until the broker's office opens
• B.Hold the funds personally in a secure location and deliver them to the broker on the next business day
• C.Deposit the funds into the broker's trust account immediately, regardless of office hours
• D.Return the check to the buyer until the broker is available to personally accept the deposit

Q2.Under federal fair housing laws, which of the following fiduciary duties could potentially conflict with an agent's obligation to avoid discriminatory practices?

• A.Confidentiality of client information
• B.Loyalty to the client's interests
• C.Reasonable care and skill
• D.Accounting for funds received

Q3.Under Iowa Code Chapter 543B, which of the following duties does a seller's agent owe to the BUYER as a customer, rather than as a client?

• A.Promoting the seller's best interests in all negotiations
• B.Maintaining confidentiality of the seller's motivation to sell quickly
• C.Disclosing known material adverse facts about the property
• D.Advising the buyer on what price to offer for the property

Q4.After initially obtaining an Iowa salesperson license, how often must the licensee renew their license, and what continuing education is required for renewal under Iowa Code Chapter 543B?

• A.Annually, with no continuing education required for salespersons in their first renewal period
• B.Every three years, with 36 hours of Iowa-approved continuing education required
• C.Every two years, with 36 hours of Iowa-approved continuing education required for renewal
• D.Every two years, with 15 hours of continuing education required only in even-numbered years

Q5.When must a covered agreement be reviewed under A.R.S. § 32-2151.01(G)?

• A.Before any party signs.
• B.Within 24 hours.
• C.Within 10 business days after execution.
• D.Only at closing.

Q6.A brokerage prefers the phrase 'primary bedroom.' How should the course characterize that choice?

• A.As an Arizona statutory vocabulary mandate.
• B.As a possible inclusive style choice, not a legal requirement identified in the cited law.
• C.As prohibited advertising.
• D.As an ADRE license condition.

Q7.A husband and wife are selling their home. While showing the property to a prospective buyer who has signed a buyer-agency agreement with the same brokerage, the salesperson realizes that both the seller and buyer are now clients of the same firm. Under Iowa Code Chapter 543B, what MUST occur before the brokerage may proceed as a dual agent?

• A.The broker must assign separate designated agents to each party, eliminating dual agency automatically
• B.The brokerage must obtain written informed consent to dual agency from both the seller and the buyer
• C.The salesperson must verbally disclose the dual agency situation to both parties at the next showing
• D.The Iowa Real Estate Commission must be notified of the dual agency arrangement within 10 days

Q8.A multi-board listing contract allows cooperation with other MLS systems. If a buyer's agent from a different MLS brings a successful offer, how is the commission typically handled?

• A.The listing broker keeps the full commission since it's their listing
• B.The commission is split equally between all participating MLS systems
• C.The buyer must pay their agent's commission separately
• D.The listing broker shares the commission with the cooperating broker per the MLS agreement

Q9.A staff member wants to charge a standard pet fee before evaluating a disability-related assistance-animal request. What should the broker require?

• A.Treat the request through the accommodation process before applying pet rules
• B.Always double the fee
• C.Refuse all animals
• D.Ask the applicant to withdraw the request

Q10.Under TRID (TILA-RESPA Integrated Disclosure) rules, the Closing Disclosure must be provided to the borrower at least how many business days before consummation of the loan?

• A.1 business day
• B.3 business days
• C.5 business days
• D.7 business days

Q11.A newly licensed Iowa real estate salesperson wants to begin practicing immediately after passing the state examination. What must occur before the salesperson may legally perform any real estate brokerage activities in Iowa?

• A.The salesperson must complete an additional 30-hour post-license course within 6 months
• B.The salesperson's license must be issued and placed on active status under a licensed Iowa broker
• C.The salesperson must register with the Iowa Real Estate Commission as an independent contractor
• D.The salesperson must obtain errors and omissions insurance in their own name before practicing

Q12.A designated broker learns of a supervised licensee's violation and immediately reports it to ADRE. What does R4-28-1103(F) provide?

• A.Immunity from every claim and violation.
• B.Protection from ADRE discipline for failure to supervise that licensee, as the rule states.
• C.Automatic dismissal of the licensee's case.
• D.A waiver of the broker's own misconduct.

Q13.A person is employed full-time by a single Iowa real estate owner to manage that owner's portfolio of commercial properties. The person negotiates leases, collects rents, and oversees maintenance — all for a salary. Under Iowa Code Chapter 543B, which statement is MOST accurate?

• A.The person must hold an Iowa salesperson license because they are negotiating leases for compensation
• B.The person is exempt from the Iowa licensing requirement because they are a salaried employee acting solely on behalf of one owner
• C.The person must hold an Iowa broker license because they manage multiple properties
• D.The person must hold an Iowa salesperson license but may operate without broker supervision as an employee

Q14.Under Iowa Code Chapter 543B, which of the following duties does a seller's agent owe to an unrepresented buyer (a customer, not a client)?

• A.Fiduciary loyalty, including promoting the buyer's best interests in negotiations
• B.Honest and fair dealing, including disclosure of known material adverse facts about the property
• C.Confidentiality regarding all information the buyer shares with the licensee
• D.The same full range of duties owed to the seller client

Q15.A broker is also a 'creditor' under TILA because the brokerage occasionally extends installment land contracts to buyers. A buyer asks whether the broker must provide an Annual Percentage Rate (APR) disclosure. Which answer correctly states the broker's TILA obligation?

• A.APR disclosure is not required because TILA applies only to institutional lenders such as banks and credit unions, not to real estate brokers.
• B.The broker must disclose the APR only if the installment land contract involves five or more transactions per year, triggering creditor status under Regulation Z.
• C.Because the broker qualifies as a creditor under TILA by regularly extending credit secured by real property, the broker must provide the required Regulation Z disclosures, including the APR, before consummation of the transaction.
• D.APR disclosure is required only for adjustable-rate transactions; fixed-rate installment land contracts are exempt from TILA.