Free Iowa Real Estate Practice Exam

Q1.What information falls within the FTC Disposal Rule's stated scope?

• A.All business information of every kind.
• B.Consumer reports and information derived from consumer reports.
• C.Only Arizona tax records.
• D.Only paper records.

Q2.A salesperson affiliated with a broker tells a prospective buyer with a physical disability that a particular condominium complex 'probably isn't right for you' because it lacks an elevator, without first determining whether the buyer is interested or whether reasonable accommodations might be available. The complex does have ground-floor units and the HOA has a policy of granting reasonable modification requests. Under the Fair Housing Act, this salesperson's conduct most likely constitutes:

• A.Illegal discrimination based on disability because the salesperson made assumptions about the buyer's needs and discouraged inquiry without determining the buyer's actual preferences or the availability of reasonable accommodations or modifications.
• B.Permissible conduct because the salesperson was acting in the buyer's best interest by saving time, and physical accessibility concerns are a legitimate basis for pre-screening properties.
• C.A violation only if the buyer explicitly stated they required an accessible unit and the salesperson refused to show the property after that request.
• D.Not a Fair Housing violation because the Fair Housing Act's disability provisions apply only to the landlord or HOA, not to real estate licensees involved in the sale.

Q3.A mobile ad shows required brokerage information only after the viewer scrolls. What is the issue under R4-28-502(J)?

• A.There is no issue online.
• B.Online requirements must be satisfied on the advertisement without scrolling.
• C.The rule applies only to print.
• D.A link in the biography always cures it.

Q4.Under the Iowa Civil Rights Act, a person who believes they have experienced housing discrimination generally must file a complaint with the Iowa Civil Rights Commission within what timeframe from the date of the alleged discriminatory act?

• A.90 days
• B.180 days
• C.300 days
• D.2 years

Q5.Under Iowa law, a newly licensed real estate salesperson must work under the supervision of whom?

• A.A licensed Iowa real estate broker
• B.Any licensed real estate salesperson with 5 years of experience
• C.The Iowa Real Estate Commission directly
• D.A licensed real estate appraiser

Q6.What event starts the general five-year retention period in A.R.S. § 32-2151.01(A)?

• A.Execution of the first offer.
• B.Termination of the transaction or employment.
• C.Recording of a deed only.
• D.An ADRE audit request.

Q7.A buyer applies for a conventional mortgage loan. The lender denies the application. Under the Equal Credit Opportunity Act (ECOA), the lender must notify the applicant of the adverse action within how many days?

• A.30 days
• B.45 days
• C.60 days
• D.90 days

Q8.Under RESPA, a lender must provide a borrower with a Loan Estimate within how many business days of receiving a completed loan application?

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

Q9.When acting as a designated agent for a buyer using FHA financing, RESPA requires specific disclosures about settlement costs. If the agent fails to provide the required RESPA disclosures, this breach most directly violates which fiduciary duty?

• A.Duty of loyalty to the buyer's interests
• B.Duty of reasonable care and competence
• C.Duty of confidentiality regarding financial information
• D.Duty of accounting for client funds

Q10.Under Iowa Code Chapter 543B, which of the following actions by a salesperson would constitute a prohibited practice and could result in license revocation or suspension by the Iowa Real Estate Commission?

• A.Advertising a listed property on a personal social media page with the broker's name clearly displayed
• B.Accepting an earnest money deposit directly from a buyer and depositing it into the salesperson's personal checking account before turning it over to the broker
• C.Presenting all written offers to the seller, including offers received after the seller has already accepted a contract
• D.Referring a buyer to a home inspector without disclosing that no referral fee is being received

Q11.A lender provides a loan estimate to a borrower under RESPA (12 U.S.C. § 2601) and TRID (TILA-RESPA Integrated Disclosure) rules. At closing, the lender's origination charge increased by $800 from the amount shown on the Loan Estimate. Under TRID tolerance rules, which of the following is the correct outcome?

• A.The increase is permissible because origination charges are in the zero-tolerance category only for third-party services.
• B.The lender must issue a revised Loan Estimate and cure the tolerance violation by refunding the excess amount to the borrower at or before closing.
• C.The increase is automatically permissible if the borrower signed the Closing Disclosure three days before closing.
• D.RESPA permits origination charge increases of up to 10% between the Loan Estimate and Closing Disclosure without penalty.

Q12.A landlord in Des Moines refuses to rent an apartment to a woman because she is pregnant. Under the Iowa Civil Rights Act, this action most likely constitutes discrimination based on which protected class?

• A.Sex only, because pregnancy is not separately listed
• B.Familial status only, because she will have a child
• C.Both sex and familial status, as Iowa law broadly interprets these protections to include pregnancy
• D.Disability, because pregnancy is considered a temporary medical condition

Q13.Under Iowa Code § 543B.56 and the IREC's agency disclosure requirements, when representing a seller in a transaction where the broker also represents the buyer, which of the following most accurately describes the Iowa standard for obtaining informed consent to dual agency?

• A.Informed written consent from both the seller and buyer must be obtained before the broker acts in a dual-agency capacity, and the consent must acknowledge the limitations on the broker's duties to each party.
• B.Verbal consent from both parties is sufficient provided the broker documents the date and substance of the consent in the transaction file.
• C.Only the seller's written consent is required because the seller's agency relationship was established first and takes precedence.
• D.Iowa prohibits dual agency entirely; the broker must appoint designated agents for each party or withdraw from representing one party.

Q14.Under A.A.C. R4-28-1103, which statement best describes the designated broker's supervisory obligation over licensees associated with the brokerage?

• A.The broker may delegate all supervisory duties to an experienced office manager
• B.The broker must personally review every transaction document before closing
• C.The broker is responsible for the conduct of all licensees employed by or associated with the brokerage
• D.The broker's duty applies only to full-time employees, not independent contractors

Q15.How does R4-28-502(J) treat AI media targeting Arizona residents for Arizona brokerage services or property?

• A.It is outside the advertising rule.
• B.It is advertising covered by the rule.
• C.It is covered only when printed.
• D.It is exempt if generated automatically.