Free Iowa Real Estate Practice Exam

Q1.A metes and bounds legal description that reads 'Beginning at the iron pin at the southwest corner of the property, thence North 45° East for 200 feet...' uses which type of reference system?

• A.Government Survey System with principal meridians
• B.Bearings and distances with monuments or markers
• C.Lot and block system with recorded plat maps
• D.Township and range divisions with sections

Q2.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.

Q3.Under RESPA, when must a lender provide the Loan Estimate to a borrower after receiving a complete loan application?

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

Q4.A property owner grants a life estate to their spouse with remainder to their children. If the spouse remarries and dies, what happens to the property interest?

• A.The remainder interest vests immediately in the children as fee simple owners
• B.The new spouse inherits the life estate interest
• C.The property interest reverts to the original grantor's estate
• D.The property becomes jointly owned by the new spouse and the children

Q5.Under the Fair Housing Act, what is the statute of limitations for filing a discrimination complaint with HUD?

• A.1 year from the date of the discriminatory act
• B.30 days from the date of the discriminatory act
• C.6 months from the date of the discriminatory act
• D.2 years from the date of the discriminatory act

Q6.A complainant files a housing discrimination complaint with the Iowa Civil Rights Commission. Under the Iowa Civil Rights Act, within how many days of the alleged discriminatory act must the complaint generally be filed to be considered timely?

• A.90 days
• B.180 days
• C.300 days
• D.365 days

Q7.A property sold for $425,000 three years ago. It has since appreciated at an average annual rate of 4%. Using the compound appreciation formula, what is the property's approximate current value?

• A.$478,148
• B.$476,000
• C.$451,000
• D.$493,520

Q8.According to RESPA, which of the following charges may NOT appear on a borrower's settlement statement?

• A.Kickback payment to the real estate agent
• B.Loan origination fee
• C.Title insurance premium
• D.Attorney's fee for document preparation

Q9.Which Iowa state agency is primarily responsible for receiving, investigating, and adjudicating complaints of housing discrimination under the Iowa Civil Rights Act?

• A.Iowa Real Estate Commission
• B.Iowa Department of Inspections, Appeals, and Licensing
• C.Iowa Civil Rights Commission
• D.Iowa Attorney General's Office

Q10.A salesperson in Iowa receives an earnest money deposit from a buyer on a Friday afternoon. Under Iowa Real Estate Commission rules, the salesperson must deliver the earnest money to the supervising broker:

• A.Within 24 hours of receipt, without exception
• B.By the end of the next banking day following receipt
• C.No later than three business days after receipt
• D.At closing, since the funds are not yet needed

Q11.The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide borrowers with which disclosure document within three business days of loan application?

• A.Truth-in-Lending disclosure
• B.Loan Estimate
• C.Closing Disclosure
• D.HUD-1 Settlement Statement

Q12.Under RESPA, which of the following is the maximum amount a lender may require a borrower to maintain in an escrow impound account for property taxes and insurance at any given time?

• A.One month's worth of estimated escrow payments
• B.Two months' worth of estimated escrow payments
• C.Three months' worth of estimated escrow payments
• D.Six months' worth of estimated escrow payments

Q13.Under RESPA, lenders are required to provide borrowers 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

Q14.After the Iowa Civil Rights Commission investigates a housing discrimination complaint and finds substantial evidence to support it, and conciliation between the parties fails, what is the NEXT step in the Iowa enforcement process under Iowa Code Chapter 216?

• A.The Commission immediately files a civil lawsuit in district court on behalf of the complainant.
• B.The Commission issues a right-to-sue letter and closes its file.
• C.The Commission refers the matter to the Iowa Attorney General for criminal prosecution.
• D.The Commission may schedule a formal administrative hearing before an administrative law judge.

Q15.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