Missed Iowa Real Estate Exam Questions

Iowa agency law is regulated by which of the following sources?

Iowa Code and Iowa Administrative Rules
In Iowa, agency is regulated by Iowa Code and Iowa Administrative Rules.

Licensee Gwen and her client Marcus are completing an Iowa Residential Purchase Agreement. Gwen will need to use an additional addendum in the offer. Which of the following is a reason to use an additional provision?

The property is subject to an owners association.
Additional addenda are used to communicate the terms of an offer that aren't part of the standard contract.

When is a seller’s agent responsible for obtaining a completed property disclosure form from the seller?

As soon as the licensee obtains the listing
As soon as a licensee obtains a listing, the licensee must obtain a completed property disclosure (signed and dated) from the seller.

How many hours of pre-licensing education must you have to qualify for a broker license in Iowa?

60
As of January 1, 2020, broker applicants are required to take 60 hours of broker pre-licensing coursework, made up of specifically timed courses.

To make sure they’re following all the rules of agency in Iowa, licensees must be sure to abide by ______.

Agency law
Licensees must abide by agency law, which governs the relationships that real estate agents have with their clients.

How many days’ notice must an Iowa licensee be given before a disciplinary hearing is held regarding the licensee and an alleged license law violation?

20 days

The tenants in 2B want to make a few improvements to their leased apartment. The couple would like to rip up the carpet in the living room and have the hardwood floors underneath restored. Which of the following statements about the improvements is true?

The tenants need to get the landlord’s permission before they make any improvements to the property.

What does a non-exclusive buyer agency agreement permit the buyer to do?

Enter into agency agreements with multiple brokers

In accordance with the Iowa Administrative Code, unlicensed assistants are permitted to perform ______ activities (those that do not require judgment, advocacy, or negotiation).

Ministerial
In Iowa, unlicensed assistants are not permitted to perform any real estate activities that require a license. They may only perform specific types of tasks that do not involve judgment, advocacy, or negotiation, which are called ministerial acts/activities.

When a licensee in Iowa acts as a dual agent, what’s true about the duty of confidentiality?

The licensee’s ability to negotiate the best deal for either party is impacted

An Iowa real estate broker has been caught and investigated for alleged misrepresentation in advertising. The commission found him guilty of two violations of license law. What is the maximum civil penalty that he might expect to pay?

$5,000
For licensees, civil penalties are limited to $2,500 per violation. So, if the licensee were found guilty of two violations, the maximum penalty would be $5,000.

Members of which protected class in Iowa are only protected against employment and credit discrimination?

Age
The Iowa Civil Rights Act of 1965 prohibits employment and credit discrimination based on age. Note that age isn’t a protected class for housing, public accommodation, and education discrimination

What requirements do sellers of 1-4 dwelling unit properties have for disclosing material defects in Iowa?

Sellers must provide potential buyers with a seller disclosure document.

Which of the following is true about the termination of farm leases in Iowa?

The termination date for farm tenancies must be March 1 of the year the lease terminates unless otherwise agreed upon by all parties.

Irene and Harold are buying a home. Which Iowa document will be used to formalize this transaction?

Iowa Residential Purchase Agreement
The Iowa Residential Purchase Agreement is the agreement that is commonly used to conduct a sales transaction between a residential property buyer and seller. While Iowa does not require standardized forms, a residential purchase agreement would be used.

Which of the following agreements does NOT have to be written down in order to be legally binding in Iowa?

The Lees rent out their basement to some college students for three months.
While it’s a good idea to get these kinds of agreements in writing anyway, an agreement to rent or lease property for less than a year doesn’t have to be in writing to be enforceable.

Which of the following is a true statement regarding seller property condition disclosures in Iowa?

There is no standard form that property owners must use.
There is no required form that must be used for seller disclosures in Iowa. All seller disclosure forms used must contain information that meets Iowa Real Estate Commission requirements.

An Iowa broker has assigned two of his associated licensees to represent opposing sides in a single transaction. One agent represents the seller and the other agent represents the buyer. What agency relationship does the broker have to the buyer and the seller?

The broker is a dual agent to both the buyer and seller.
Since the broker has assigned his associated licensees to represent both buyer and seller in the same transaction, he is the dual agent. The two licensees are appointed agents.

Iowa broker John let his license expire. He applied for license reinstatement on April 15. How much was his reinstatement fee?

$100
Reinstatement fees are $25 per partial or full month since expiration. While the grace period gives licensees until January 30 to finish their renewal process, the actual expiration date is December 31. In John’s case, his license was expired for three-and-a-half months (January, February, March, and half of April), so he owes four increments of the $25 fee, adding up to a reinstatement fee of $100.

In an Iowa real estate license law disciplinary proceeding, if the case has reached the hearing stage, which of the following actions can you deduce has definitely already taken place?

The disciplinary committee has reviewed and assessed the complaint/information.
Formal written complaints are not necessary for the commission to address suspected license law violations, and the disciplinary committee has the ability to, after assessment, recommend that the commission move straight to the disciplinary proceeding (hearing) stage, without need for an investigation, if the circumstances warrant it. The only item listed that has definitely occurred is the disciplinary committee’s review of the complaint/information.

What is the primary focus of the statute of frauds?

Real estate purchase and sale contracts must be in writing to be enforceable.

Angela is an Iowa salesperson who surrendered her license to the commission for disciplinary reasons two-and-a-half years ago. Which of the following is true regarding her license reinstatement?

She’ll need to complete all of the requirements for an original application in order for her license to be reinstated as a new licensee.
For licenses that have been surrendered or revoked, the only way to reinstate the license is to start over from scratch by applying as a new licensee. While the applicant will need to pay the licensing fee, no additional reinstatement fee is necessary.

An Iowa real estate salesperson has recently been found guilty of fraudulent activity. Which of the following is a possible penalty that the real estate commission might impose upon her?

License suspension

Which of the following steps in the Iowa real estate disciplinary process could directly result in the commission taking disciplinary sanction against a licensee, including license suspension or revocation?

The hearing before the commission, where evidence may be presented
While all of these steps may be a part of the disciplinary process, the commission would need to hold the hearing in order to take disciplinary action against a licensee, including suspension or revocation of license.

Agricultural leases in Iowa that are longer than ______ years must be recorded with the county within 180 days of execution.

5

How many days’ notice must an Iowa licensee be given before a disciplinary hearing is held regarding the licensee and an alleged license law violation?

20 days

What is a subagent?

An agent from another firm who assists in serving a client

The written agency disclosure in Iowa offers a signature line for what purpose?

Buyer’s or seller’s acknowledgement of receipt

Who are the parties to a listing agreement?

In Iowa, a listing agreement is an agency agreement between the sellers of a property and their agent, as a representative of the agent’s broker.

What’s required to create an agency relationship in Iowa?

Agency relationships in Iowa are created through written agency agreements.

What’s the role of the mortgage contingency in an Iowa sales contract?

Documents the timeline and type of financing, and outlines what to do if financing falls through.

Danny and Kelly are both licensees at Premium Realty in Iowa. Danny represents the seller, and Kelly represents the buyer in the same transaction. Which one of the following statements is true for this transaction?

Danny and Kelly are both appointed agents; no dual agency exists.

After an investigation has been conducted, and the Iowa Real Estate Disciplinary Committee has submitted its recommendation for next steps in the disciplinary process, who may initiate disciplinary proceedings, including a hearing?

The full commission, with a majority vote

Which Iowa document outlines the details of compensation due between a broker and buyer client?

Buyer agency agreement

The Iowa Real Estate Commission expects brokers to ______ in order to sufficiently meet supervision requirements.

Assist and advise affiliates on brokerage-related activities