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Iowa Real Estate Exam Prep With 199
Questions
A broker manages three individual rental units for one owner. One property is in need of emergency repairs, but the individual trust account ledger on that unit shows that there is not enough money in the account to cover repair costs. With permission from the owner, the broker transfers funds from one of the owner's other accounts to make repairs. Which of the following is TRUE? - ✔ ✔ The broker's action was appropriate as long as the individual ledgers properly reflect the broker's actions.
An Iowa real estate salesperson may lawfully receive direct compensation from - ✔ ✔ his or her employing broker.
A salesperson has decided to leave his employing broker and work for another. The original employing broker must - ✔ ✔ forward the license to the real estate commission and note on it the cause from termination.
Several weeks after closing, an appointed seller's agent received a thank-you letter and a nice bonus check from the seller of the house. The appointed agent cashed the bonus check and bought some new business clothes. In this situation, which of the following is TRUE? - ✔ ✔ Accepting the bonus money is a violation of Iowa law.
A broker's corporation's, or partnership's license is suspended for two years. The licenses of the affiliated associate brokers and salespeople
are - ✔ ✔ returned to the commission and placed on inactive status.
A broker applies for a branch office license and names a licensed salesperson as the new branch office sales manager. Will the broker receive approval for the branch office? - ✔ ✔ No, the manager of a branch office must be a broker-associate.
A salesperson is not satisfied with her present real estate company and decides to become associated with another broker. Before the salesperson can begin selling for the new company - ✔ ✔ the salesperson's existing license must be sent to the commission within 72 hours, and then a new request form must be signed by the new broker and sent to the commission with the proper fee.
Every Iowa real estate office is required to - ✔ ✔ maintain trust account records for five years after the closing.
An airline pilot, who does not have a real estate license, told a broker about some friends who were looking for a new home. The broker contacted the friends and eventually sold them a house. When may the broker pay the airline pilot for this valuable lead? - ✔ ✔ It is illegal for the broker to pay the pilot for the lead.
Which of the following is legal and will NOT subject an owner-broker to disciplinary action? - ✔ ✔ Soliciting agents from other real estate agencies
A broker associate or salesperson that fails to keep the employing broker informed of her real estate-related activities is subject to a maximum civil penalty of - ✔ ✔ $2,
If a "subject to sale" offer has been accepted but the subject property does not sell within the agreed time frame, the earnest money is normally - ✔ ✔ returned to the buyer after the seller signs an earnest money release form
Upon the acceptance of his offer, a buyer instructs his dual agent to safeguard his earnest money check, but not to deposit it until the transaction closes. The broker must - ✔ ✔ deposit it in the broker's trust account within five banking days after the final acceptance signature.
A consensual dual agent writes a $200,000 offer on a personally listed home at 1:00PM. The dual agent then called the seller to set up an appointment to present the offer at 4:00PM. Around 3:00PM, an outside buyer's broker dropped off an offer on the same property for $203,500. The listing company should - ✔ ✔ call the owner and explain that two offers will be presented, rather than just one.
Real estate brokerage firms that allow affiliated licensees to hire personal assistants must - ✔ ✔ implement a written policy authorizing the proactive and identifying the duties the assistants can perform
A broker places an ad in the newspaper showing just a P.O. Box number. This kind of advertising is - ✔ ✔ illegal because the broker is not allowed to advertise without including the regular business name of the the brokerage.
If a material error in an advertisement comes to the attention of the broker, the broker is required to take corrective measures within - ✔ ✔ 10 calendar days.
An Iowa broker must establish a trust account - ✔ ✔ in an FDIC or NCUA financial institution located in Iowa
A broker pays utility payments, commissions, and salaries from the - ✔ ✔ business operating account
Concerning the release of earnest money, which of the following is illegal and may result in the broker being disciplined? - ✔ ✔ A broker withholds a portion of the earnest money after a transaction fails to close to cover the commission that has been earned
The person responsible for supervising a branch office is called the - ✔ ✔ broker-in-charge
In order for more than one broker to share the same office, each broker must do all the following EXCEPT - ✔ ✔ maintain individual fax machines
Every branch office is required to display two branch office licenses: one is in the name of the real estate firm, and the other is in the name of the - ✔ ✔ broker associate-in-charge of the branch office
The legal period of time that a broker has to send a change of business address to the commission is - ✔ ✔ 5 working days
A real estate broker signed an agency agreement with a tenant who was looking for a building to lease. The broker does NOT charge a fee to the prospective tenant, rather, the broker customarily asks the landlords to pay the commission. The broker tells a landlord that the prospective tenant could probably pay a somewhat higher rent than the landlord was asking. Which of the following statements is TRUE? -
a change of heart and withdrew their acceptance. In this situation, the listing agent's broker - ✔ ✔ can sue the seller for a commission
Regarding listing agreements, the commission's rules require that the listing agreement - ✔ ✔ must state the exact fee or percentage the broker will earn.
Listings based on a "net price" to the seller are - ✔ ✔ illegal in Iowa regardless of agreement
The sellers told the broker that they wanted to clear $50,000 when they sold their house. The broker accepted the listing and sold it for $100,000. The broker gave $50,000 to the sellers and kept $50,000. The broker - ✔ ✔ accepted an illegal net listing
A seller signs a listing agreement with a broker. The agreement contains the following clause: "If the property has not been sold after six months from the date of this signing, this agreement will automatically renew itself for an additional six months." Based on these facts, the agreement is - ✔ ✔ illegal in Iowa because of the automatic renewal clause
In a listing agreement, which of the following is legal? - ✔ ✔ Not including the broker's protection clause
Upon obtaining a listing, a broker or licensed salesperson is obligated to
- ✔ ✔ give the seller a legible copy of the written listing agreement
All of the following agreements must be in writing EXCEPT a(n) - ✔ ✔ multiple listing
In Iowa, to fulfill the legal minimum, how many witnesses must sign in the presence of a person making a will? - ✔ ✔ Two
In order to enforce a protective clause, the broker - ✔ ✔ must define the protection period in the original listing agreement
In a listing agreement, the protective clause protects the - ✔ ✔ broker
A broker can extend all of the following through MLS EXCEPT - ✔ ✔ subagency
A flat-fee broker has agreed to list a home for $3,000. The flat-fee broker does not offer compensation to outside brokers. An outside broker is working with a buyer-client who wants to make an offer on the flat-fee broker's listings. The buyer's broker has signed a buyer's agreement that state that the buyer is obligated to pay a 3.5% finder's fee. The buyer writes a full-price offer and demands that the seller pay the additions 3.5% for the buyer's commission obligation to the broker. In this situation - ✔ ✔ the buyer's agent must call the listing agent and obtain written permission before approaching the seller with the buyer's commission payment demands.
An arrangement in which a licensee conditions the sale of a lot to a buyer with the right to list their existing home is known as - ✔ ✔ tying
Upon termination of employment with his broker, a salesperson asked a seller to cancel her listing and re-list it with the saleperson's new broker. This activity is - ✔ ✔ unlawful because the agent is not allowed to take listings
In Iowa, to establish a "marketable record title," an unbroken chain of title must be established for a period of at LEAST - ✔ ✔ 40 years
In Iowa, the Department of Revenue and Financing requires the buyer or seller to make a declaration of Value Statement about all the following EXCEPT - ✔ ✔ disclosure of any known or discovered environmental hazards
When is a salesperson allowed to close a transaction? - ✔ ✔ Under the direct supervision or with permission of the broker
The listing broker authorizes the selling broker to handle to closing. Who is ultimately responsible for proper accounting? - ✔ ✔ Listing broker
If requested, and after the acceptance of an offer, a broker is required to furnish a detailed progress report to the buyer and/or seller - ✔ ✔ at reasonable intervals
Dual contracts for the sale of real property refer to - ✔ ✔ two accepted offers by the same buyer on the same property
What happens if the closing takes place and the Groundwater Hazard Statement is NOT signed? - ✔ ✔ The deed may not be recorded
If the seller is not available to sign the Groundwater Hazard Statement, who may sign instead? - ✔ ✔ Seller's agent
A buyer's agent showed an outside firm's listing that offered to pay the selling firm 3% commission. The buyer's agent then presented an offer on the same property demanding that the seller pay a 3.5% commission to the selling firm. In this situation, they byre agent's demands are - ✔
✔ legitimate only if the listing agent gave the buyer's agent prior written consent to alter the original commission structure.
A broker lists a vacant parcel of land for $10,000, and the owner of the property agrees to pay a 10% commission. The broker finds a buyer who submits, with a full price offer, an earnest money check for $1,000. At closing, the seller tells the broker to keep the deposited earnest money in lieu of the 10% commission due to the broker. In this situation the broker - ✔ ✔ must promptly withdraw the $1,000 and transfer it to the broker's business account.
Iowa's replacement for title insurance is known as - ✔ ✔ Title Guaranty
A broker going out of business wants to sell his listings to another company and is - ✔ ✔ eligible to do so with the written consent of all parties to the listing agreement
in Iowa, who administers real estate license law? - ✔ ✔ Iowa Real Estate Commission
The members of the Iowa Real Estate Commission are appointed by the
- ✔ ✔ Governor, subject to senate approval
The real estate commission has the authority to - ✔ ✔ Make and enforce the rules by which all real estate licensees must abide
The Iowa Real Estate Commission may undertake an investigation of a licensee based on all of the following grounds EXPECT - ✔ ✔ A phone complaint from the public
The real estate commission occasionally receives written complaints that lack clarity and, therefore, may be refused a hearing. Which of the following is grounds for a hearing? - ✔ ✔ Revocation of any professional license
The mix of licensed and unlicensed members of the real estate commission is - ✔ ✔ five licensed and two unlicensed
A real estate commissioner will server for a term of - ✔ ✔ three years
If a salesperson member of the Iowa Real Estate Commission elects to become a broker-associate during her appointment to the commission she - ✔ ✔ may complete her term as a salesperson, but lose eligibility for reappointment as a salesperson if she is the only salesperson member
The Iowa Real Estate Commission - ✔ ✔ member is not allowed to hold any other elective or appointed state or federal office simultaneously
By state law, the Iowa Real Estate Commission may NOT - ✔ ✔ adopt rules to establish title insurance in Iowa
Members of the commission are entitled to - ✔ ✔ Actual expenses plus a stipend for each day of service
The commission seal is used to authenticate - ✔ ✔ the real estate commission's proceedings and copies of paper used in court
In the preparation of a real estate hearing, the power to execute and sign subpoenas that require the attendance and testimony of any
witness and the handover of any paper or books is given to the - ✔ ✔ The Real Estate Commission
Disobedience to a real estate commission subpoena is considered - ✔ ✔ Contempt of court
Witnesses subpoenaed by the Iowa Real Estate Commission are entitled to - ✔ ✔ The same fees and mileage as in judicial proceedings for civil cases
At least annually, the Iowa Real Estate Commission publishes, and mails upon request, the names of all licensees licensed in Iowa and the names - ✔ ✔ of those whose licenses have been suspended or revoked within the last year
The Iowa Real Estate Education Fund is created as a financial assurance mechanism to assist in providing an education director and establishing and maintaining a real estate education program at - ✔ ✔ The University of Northern Iowa
The Iowa Real Estate Commission specifically will NOT get involved with a dispute over - ✔ ✔ Commissions between cooperating real estate firms
A complaint has been filed against a licensee. The commission has determined that a contested case hearing must be held. The commission must send a notice of the hearing along with a statement of the charges at LEAST - ✔ ✔ 20 days before the hearing
A licensee has received a notice of a hearing. The licensee must acknowledge receipt of the notice within - ✔ ✔ 10 days
In Iowa, who of the following would need to be a licensed real estate broker or salesperson? - ✔ ✔ A person accepting a referral fee from a licensed real estate agent
Which of the following activities requires a real estate license? - ✔ ✔ A company that, for a fee procures tenants for landlords
In Iowa, a partnership, association, or corporation will be granted a license only if - ✔ ✔ every member and/or officer actively participating in the brokerage business has a broker's or salesperson's license
"Engaging in the real estate business" consists of acting for another for a fee in all of the following activities EXCEPT - ✔ ✔ selling of mobile homes
In engaged in the sale and closing of a real estate transaction, which of the following persons are exempt from Iowa's licensing requirement? - ✔ ✔ Attorney's-at-law
An office manager for a local real estate firm is responsible for the following activities: coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personnel. The office manager is - ✔ ✔ exempt from real estate licensing requirements
In Iowa, applications for any salesperson's real estate license must contain - ✔ ✔ a pass of notice from the testing service
A requirement for obtaining a broker's license includes - ✔ ✔ being of good moral character
A person successfully completed pre licensing and passed the salesperson's test on November 16, 2006. What is latest date on which she may apply for a salesperson's license? - ✔ ✔ May 31st, 2007
Three weeks before a person began real estate pre-licensing, he offered to help a neighbor sell her house. The neighbor agreed to pay the person a 5% commission. The seller accepted an offer while the person was taking the pre licensing class and closed the day before the person passed the examination. The neighbor refused to pay the agreed commission. Can the person who passed the exam sue the neighbor for a commission? - ✔ ✔ No, state law prohibits any lawsuit to collect a commission, unless the injured party was a duly licensed agent at the time of the alleged cause of action.
Which of the following persons must have a real estate broker's license in order to transact business? - ✔ ✔ A person who negotiated the sales of entire businesses, including stock equipment and building for an agreed fee.
An applicant for a real estate license in Iowa may be denied a license for - ✔ ✔ being convicted of a felony.
When does a real estate license expire? - ✔ ✔ December 31st of the third year of licensure
To renew an Iowa real estate license to active status a salesperson must
- ✔ ✔ complete 36 hours of commission-approved continuing education within the last three years
An owner wants to sell her own house. The owner - ✔ ✔ must inform potential buyers of any known structural problems
Which of the following is a requirement to obtain an Iowa salesperson's license? - ✔ ✔ Obtaining a sponsoring broker's signature on the application form
Which of the following situations completely satisfies the active- license-renewal continuing education requirements? - ✔ ✔ Retaking and passing the licensing exam within six months of renewal
An Illinois broker holds an Iowa license by reciprocity. The Illinois broker is exempt from the requirement of maintaining a definite place of business in Iowa if the broker - ✔ ✔ files an irrevocable consent agreement with the Iowa Real Estate Commission
A licensee is audited to see if the licensee has met the renewal education requirements. If the licensee fails to response to the commission within 60 days, the commission will - ✔ ✔ place the license on inactive status
During each three-year licensing period, a licensee may - ✔ ✔ repeat a course if the course numbers and instructors are different
On December 30, a licensee realizes that she has not taken the required continuing education courses. She sends in the proper fee along with the application to renew. On January 1, the license - ✔ ✔ becomes inactive
Successful completion of continuing education requires - ✔ ✔ full- time attendance throughout the course
After a candidate for a salesperson's license has completed the required pre licensing education, the candidate must pass the state examination within - ✔ ✔ 12 months
After a salesperson completes the requirements to become a licensed salesperson, the commission - ✔ ✔ sends the license to the salesperson's employing broker
The commission requires which of the following for salesperson candidates? - ✔ ✔ passing the salesperson's real estate examination
In which of the following situations, though acting for another for some kind of fee, is a real estate license NOT required? - ✔ ✔ Auctioning others' personal property
A salesperson who failed to submit the required continuing education hours for license renewal may continue with an inactive license in order to - ✔ ✔ collect a commission on a sale that was scheduled to close prior to the license being placed on inactive status
Who among the following must have a real estate license in Iowa? - ✔ ✔ An auctioneer that closes a farm sale
Which of the following rises to the level of specific assistance? - ✔ ✔ Establishing a listing price range with a seller
The commission may deny the issuance or renewal of a real estate license - ✔ ✔ upon receipt of notice that the applicant or licensee is in default of a college student loan
