IA LAW ADMIN Flashcards
(172 cards)
1
Q
Required to engage in real estate services. Sales associates achieve “this status” by finding and employer and filing with the IREC
A
Active license
2
Q
In addition to the completed application form, the application package to the IREC must include:
A
- Application signed by the sponsoring broker
- The passing notice
- Proof of the required education
- Proof of errors and omissions (E&O) insurance
- Appropriate licensure fee
3
Q
Iowa candidates who pass the exam must file for a license with the Commission no later than ( ? ) otherwise, the passing test results are nullified and the exam must be retaken.
A
The last working day of the sixth calendar month following the qualifying examination
4
Q
Where a licensee receives letters and so forth through the US Postal Service.
A
Current mailing address
5
Q
Applicants authorize the release of a criminal background check to the IREC, which must be completed within ( ? ) prior to the date the license application is received by the Commission.
A
210 calendar days
6
Q
All individual licenses expire on
A
December 31 of the third year of licensure.
7
Q
First-time license applicants are not allowed to file for an
A
“inactive” license (The applicant must first receive an active license that may be placed on inactive status at a later date)
8
Q
Individuals whose licenses are on inactive status with the IREC are not required to carry ( A ? ), but they are required to ( B ? )
A
A. Errors and omissions insurance;
B. Renew their license every three years.
9
Q
Invalid, without force, no longer effective.
A
Void
10
Q
The license status that results when a licensee has met all the requirements for licensure, yet the licensee chooses not to engage in the real estate business, and has requested that the license be placed in this status.
A
Inactive (Voluntary)
11
Q
The mission of the ( ? ) is to protect the public through the examination, licensing, and regulation of real estate brokers, salespersons, and firms…
A
IREC (Iowa Real Estate Commision)
12
Q
Commisioner appointments are for
a. two years.
b. three years.
c. five years.
d. seven years.
A
B
13
Q
The IREC is made up of ( A? ) members, each residing in a different Iowa county. The appointments are made by the ( B? ) and confirmed by the ( C? )
A
A. 7
B. Governor
C. Iowa State Senate
14
Q
In Iowa as a condition of licensure, all real estate licensees except those holding inactive licenses must carry “this” covering all activities contemplated under Iowa license law.
A
E&O Insurance (Errors and Omissions)
15
Q
Of the 7 IREC members, ( A? ) members are Iowa real estate licensees and ( B ?) are nonlicensees who represent the public.
A
A.5
B.2
16
Q
To conduct business, a majority of Commission members constitues a:
A
Quorum
17
Q
No IREC member is allowed to serve more than ( _A? )_consecutive terms, or ( B? ) years, total.
A
A. 3
B. 9
18
Q
The Commission is a policy-making body with authority to promulgate rules for the regulation of the real estate industry consistent with all applicable statutes. Rules promulgated by the Commission are published under ( ? ) and these procedural rules have the force of law
A
Iowa Administrative Code Chapter 193E
19
Q
Promote or make widely known (an idea or cause) ; put (a law or decree) into effect by official proclamation.
A
Promulgate
20
Q
In Iowa, a ( ? ) is required when someone, with the intent or upon the promise of compensation, attempts to perform or performs the services of a licensee, whether as a part of a transaction or as an entire transaction, or claims to be a licensee
A
Real Estate License
21
Q
The criminal history check must be completed within ( A.? ) calendar days prior to the date the license application is received by the Real Estate Commission, and are only good for ( B.? ) days
A
A.210
B. 210
22
Q
True of False: In Iowa, there are no residency requirements or any U.S. citizenship requirement
A
True
23
Q
An applicant for a real estate broker’s or salesperson’s license who has been convicted of a felony may not be considered for licensure for at least ( ? ) years after the fulfillment of any type of sentence.
A
2
24
Q
If the offense involved forgery, embezzlement, obtaining money under false pretenses, theft, arson, extortion, conspiracy to defraud or other similar offense; any offense involving moral turpitude; or other offense involving a criminal breach of fiduciary duty, The applicant will not be considered for ( ? )
A
At least five years
25
The Commission may deny a real estate license to anyone who has had ( ? ) in Iowa or any other jurisdiction
A professional license of any kind revoked or suspended or who has had any other form of discipline imposed,
26
A licensee who is convicted of any of these stated offenses is required to notify the Commission within _( A.? )_ of the conviction. Failure to do so is _( B? )_
A.Ten days
B. Grounds for license revocation.
27
A person who ( ? ) on an application for a broker's or salesperson's license may be denied a license by the Commission
Makes a false statement of material fact
28
If denied a license, the applicant has ( _?_ ) to request a discovery hearing
30 Days
29
Iowa law requires that a person hold an active salesperson's license for at least ( ? ) before becoming eligible to receive a broker's license.
24 months
30
True or False: A broker associate or salesperson can be licensed under more than one broker during the same period
False
A broker associate or salesperson ***_can not_*** be licensed under more than one broker during the same period
31
Each actively licensed broker associate and salesperson must be licensed under a _( ? )_
Designated broker
32
Commission rule requires that each salesperson and broker associate keep the broker fully informed. A licensee who fails to do so could be subject to
Disciplinary action ***and*** fined up to $2,500
33
All salespersons, as a requirement of license renewal and to maintain active status, must complete a minimum of ( ? ) during the three calendar years of the license term.
36 hours of approved courses (to include 8 hours on legislative updates, 4 hours on ethics, and 24 hours on elective topics)
34
A Broker candidate must be actively licensed as a salesperson for at least ( ? )
24 months
35
Qualified applicants for a broker's license must complete a Commission-approved course of at least
72 classroom hours
36
As an alternative, a salesperson may satisfy all continuing education requirements by retaking and passing the real estate salesperson's examination during
The last six months of the renewal period
(Rule also applies to brokers, with broker's examination during last 6 months.)
37
A licensee who fails to renew or file a completed renewal application by _( ? )_ may apply to reinstate the license.
Midnight January 30 of the first year following expiration
38
Normally, when a licensee is discharged by an affiliated broker or the licensee terminates the employment of or association with the affiliated broker, the licensee immediately ceases all activities that require an active real estate license until such time as \_\_
A new affiliated broker makes a written request for the license and the license is reassigned to the new affiliated broker
39
When the licensee is discharged, the broker must immediately deliver or mail the discharged person's license to the Commission. The releasing broker must\_\_\_
The releasing broker must make every reasonable effort to ensure that the Commission receives the license within 72 hours of the termination date.
40
The immediate license transfer process involves three steps, and each step must be correctly completed in the proper order to qualify as a valid transfer. Put the three steps in order:
* The transferring licensee must sign the transfer form, certifying that the information on the form is true and correct and acknowledging that providing false information would be a violation of Iowa Code Section 543B.29(1), which could result in disciplinary action against the license.
* If a new affiliating broker has completed and signed step 1 of the Application to Transfer, the releasing broker must, within 48 hours, make every reasonable effort to sign and return the form to the requesting licensee. The releasing broker must retain copies of records to demonstrate compliance with Iowa Code Section 543B.33.
* The transferring licensee must obtain certain identifying information and the signature of a new employing or affiliating broker.
3
2
1
41
How much is the transfer tax in Iowa?
No tax on first $500 of sale price; $80 per $500 after that.
42
Two individuals form a partnership to open a real estate company. Which of the following is correct regarding licensing requirements?
A. Both must be licensed brokers
B. At least one of them must be a broker
C. If one is a broker, the other must be a salesperson
D. They can hire a licensed broker to run the company and neither need a license
B
43
According to Iowa Real Estate license law, all of the following would be classified as engaging in the practice of real estate EXCEPT the person who
A. For a fee, sells real estate for others
B. Attempts to sell real estate for anyone subject to reciept of a fee only if successful.
C. Regularly receives compensation fo renting property for various landlords
D. Is selling his or her own personal property
D
44
A salesperson, living in Des Moines, holds an inactive Iowa salesman's license. Which of the following acts may she perform?
A.List and sell homes in Des Moines area
B. List and sell commercial property anywhere in Iowa
C. She must choose between residential and commercial activities
D. She cannot list or sell homes anywhere in Iowa
D
45
A licensed real estate broker may do all of the following EXCEPT
A. Employ a telemarketing company to solicit listings
B. Employ another broker on his/her behalf as a salesperson
C. Offer different commission splits with salespeople within the company
D.Establish a commission rate without notifying the local MLS
A
(Unlicensed people cannot solicit listings)
46
Which of the following is a requirement to become a licensed agent in Iowa?
A. Be at least 21 years old
B. Be a resident of Iowa
C. U.S. citizenship
D. Complete an application form and forward without a recent photo
D
47
A Salesperson working for a broker has committed a violation of real estate license law. His broker was aware of the violation, but did not participate in the illegal activity. Can the principal broker's license be suspended or revoked?
A. Yes, because the principal broker had guilty knowledge
B. Yes, because the broker always loses his / her license if a salesperson does
C. No, because the broker did not participate in the act
D. No, because the broker cannot be expected to supervise all his/ her salespeople
A
48
How soon must the broker deposit the earnest money into the broker's trust account after an offer to purchase has been made?
A. Before the offer is presented
B.Within 24 hours of presentation
C. Within five banking days of offer presentation
D. Within five banking days of acceptance of offer
D
49
Which of the following events may happen regarding a disciplinary action involving a real estate licensee?
A. Lincense may be temporarily suspended before a hearing if the complaint is very serious
B. Broker's license may be suspended without a hearing when the broker has been indicted on criminal charges
C. Salesperson's license may be automatically revoked for a fraud
D. License may never be suspended without holding a hearing first
D
50
A buyer backs out of a transaction just before closing and agrees to foreit $6000 earnest money. The seller agrees that the broker has earned $2000 even though the closing did not take place. To collect the commision the boker should
A. Return the commission to the buyer and have the buyer make checks to seller and broker
B. Give all the earnest money to the seller, then bill the seller for the commission
C. Retain $2000 of the earnest money and remit the balance to the seller
D. Retain $2000 of the earnest money and remit the balance to the buyer
B
51
Under which circumstance may a salesperson accept an earnest money check from a buyer that can not immediately be cashed?
A. Under no circumstances
B. If the check can be made good within five banking days
C. If it is okay with the seller and the fact has been written in the offer
D.If the broker has enough of his own personal funds in the account to cover the check
C
52
Two contracts exist between a buyer and a seller: one for the actual sale price and a second contract at an inflated price to be submitted to a lender to obtain a higher loan amount. This practice is known as
A. Puffing and is legal
B. Maximizing leverage and is legal
C. Value adjustment and is illegal
D. Dual contracts and is illegal
D
53
What preserves a broker's right to compensation if, within a certain number of days after the listing agreement expires, the owner transfers the property to a purchaser who was brought to the seller by the listing broker.
Protection clause
List of names must be given to seller prior to listing expiration
54
Buyers wish to buy a home listed by Broker A. Broker A refuses to write up the offer unless the buyers list their present home with Broker A. This is an example of
A. Tying
B. Steering
C. Good business practices
D. Mutual benefit to both parties
A
Federal Law. Antitrust violation
55
The principal broker has set a minimum fee. The salesperson must charge this fee or more whenever a listing is taken. This action is
A. Illegal under antitrust laws
B. A legal business practice
C. An unconscionable practice called usury
D. A restraint on the salesperson's ability to conduct business
B
56
Who has the primary responsibility for supervision of a salesperson's personal assistant?
A. Licensee who hired assistant
B. Broker who hired assistant
C. Real Estate Commission
D. Office manager of real estate brokerage company
A
Broker must have written policy on having assistants
57
The seller's agent would be entitled to compensation from his principal under a(n)
A. Seller agency agreement
B. Exclusive right to sell listing agreement
C. Dual agency agreement
D. All of the above
B
Agency has nothing to do with compensation
58
A buyer withdrew his offer before it was accepted. He had used a cashier's check for his earnest money deposit. When can he expect to receive it back?
A. After the check clears
B. Immediately
C. Within 2 weeks
D. Cannot expect it back
B
59
A licensee has listed her parents' home and is assisting them in locating a smaller home. Is this legal?
A. No, she should ask another agent to represent her parents to avoid any conflict of interest charges
B. No, she must have written permission from the real estate commissioner
C. Yes, but she needs to disclose her familial relationship only to her broker
D. Yes, if she has written disclosure to all parties concerned
D
60
IREC's Mission is
To protect the public
61
How long does a brokerage agreement last?
Until closing
62
The list of people to be 'protected' in a protection clause must be given to
The seller, before the listing agreement ends
63
Before the commission holds a hearing on charges filed against a salesperson by a dissatisfied client, all of the following procedures must be followed EXCEPT
A. Salesperson must be notified of the charges against the salesperson
B.Salesperson's broker must be notified of the changes
C. Hearing will be held at the county courthouse where the offense occured
D. Salesperson must be given 20 days written notice of the hearing
C
Courts are not involved in hearings
64
A broker did not appear at the hearing called by the commission to deliberate files against the broker by an unhappy client. Under these circumstances, the hearing
Is held anyway, and the broker will have to live with the results
65
A licensee moved from one Iowa town to another. How soon must he inform the commission?
Within 5 days
66
All of the following must be disclosed on the Groundwater Hazard Statement EXCEPT
A. Radon
B. Underground storage tanks
C. Private burial grounds
D. Hazardous materials
A. Radon
67
The licensee helped a buyer write up an offer that was accepted by the seller on December 30. The licensee did not renew her license. under these circumstances, can she be paid a commission when the property closes in January?
A.No
B. It is up to the broker
C. Yes if she renews by January 31
D. If the buyer and the seller agree to this
B.
Always up to the broker if licensee earned it before losing it
68
The salesperson'sl license is due to expire on December 31. The licensee had not taken the required education courses. What should the licensee do?
Renew the license in December on inactive; then take the courses and then apply for active status
69
The Iowa Fair Housing Laws cover all Except
A. Commercial Properties
B. Apartment buildings of any size
C. Motorhomes
D. Sales of single family homes
C.
Mobile home could qualify if on land, but 'motorhome' can not
70
The applicant for a real estate license must furnish the IREC with which of the following?
A. Business address
B. Credit report
C. Recent Photo
D. Home Address
D.
(Broker fills out business side, "you" fill out personal side
71
A dual agency consent agreement should include
A. Statement that representing more than one party may present a conflict of interest
B. No notice that client must consent to dual agency
C. Notice that the client who actually pays the commission will receive greater loyalty from the dual agent
D. No information regarding what the dual agent may or may not do.
A
72
A broker is required to offer
A. Any type of agency relationship requested by a client
B. Some form of single and some form of dual agency
C. Some form of single agency
D. Any form of agency the broker chooses
D
73
Agency disclosure is generally required
A. Prior to closing a transaction
B. Within 5 days of acceptance of the offer
C. Before specific assistance is provided to the party
D. Prior to listing being offered through the MLS
C
74
Who is responsible for keeping track of continuing education requirements?
A. Licensee's brokerage firm
B. IREC
C. Real estate school providing the continuing education course
D. Each and every licensee
D.
(Must keep docs after renewal)
75
In Iowa, who of the following must obtain a real estate license in order to collect a fee?
A. FSBO
B. Attorney in fact
C. Timeshare use salesperson
D. Friend selling a neighbors house
D.
76
The buyer and the seller are in disagreement as to the disbursement of the earnest moeny. When can the broker distribute the money?
A. When the seller has given written authorization
B. When all parties to the transaction give written releases agreeing to the disposition
C. When the buyer has given written authorization
D. When the cooperating broker has given written authorization
B.
77
The amount of compensation paid to a broker for selling a property is fixed by
Agreement of the parties
78
Licensees may lose their licenses for
A. Splitting commission earned with unlicensed people
B. Failing to be employed on a full time basis
C. Soliciting from door to door
D. Buying listed properties
A
79
When you know that someone is violating the Iowa Real Estate Regulations, you should
A. Do nothing
B. Notify the local Board of Realtors only
C. Notify the MLS
D. Notify the IREC in writing
D.
80
Members of the Real Estate Commission
A. Are paid an annual salary
B. Have real estate licenses
C. Work to safeguard the welfare of the public
D. Hear all disputes referred to them to the Director of Education for arbitration
C.
81
Who of the following would be exempt from getting a real estate license when handling a sale of real property
A. Fee appraiser
B. Neighbor renting a property for free
C. Part-time sales people
D. Administrators or executors of a will
D.
82
The penalties for acting as a property manager or as a real estate salesperson without first obtaining a license are
A. $100 fine and/or up to 1 year in prison
B. Up to $1000 fine and/or up to 6 months in prison
C. No more than $2500 fine
D. Up to $500 fine and/or up to 6 months is prison
C.
83
What should a buyer's agent to with cash earnest money?
Deposit in the selling broker's trust account
84
A broker or property manager may keep what amount of personal funds in his escrow account to keep it open?
$500
85
The penalty for renewing a license between January 1 and January 30 is
$25.
86
What requirements are made of a broker who wishes to open an office?
A. Maintain a specific place of business open during business hours or by appointment
B. Operate from his home until business picks up
C. Use a PO box as his address
D. Open his office in defiance of municipal zoning laws
A
87
Which of the following duties may an unlicensed secretary perform?
A. Sell property providing it is done directly under a broker's supervision
B. Sell or negotiate deals as long as another agent is present
C. Show properties as long as she doesn't mention price
D. Refer interested clients to the broker of any of her agents
D.
88
Of the following options, a broker, receiving a check for earnest money, would
A. Give it to the owner along with the Agreement of Sale
B. Deposit it immediately in his general checking account
C. Use if to cover expenses on the sale
D. Hold it until the offer has been accepted and then deposit it within 5 days in his escrow account
D.
89
As soon as a real estate salesperson receives a deposit of earnest money, he should
Give it to his broker-in-charge
90
When a salesperson leaves a broker, the broker must
Advise the real estate commission that the salesperson is no longer with the broker and turn in his license
91
The IREC has jurisdiction over all of the following EXCEPT
A. Examining applications
B. Regulating real estate business offices
C. Arbitrating disputes among licensees
D. Issuing licenses
C.
92
How many licenses must be displayed in a branch office?
Two: Designated broker and branch office license
93
Documents, such as leases, listing agreements, and contracts of sale, bust be held by the broker for
A minimum of 5 years
94
In Iowa, property management agreements must be in writing, identify the peoperty, and include
A. The commission to be paid
B. An indefinite expiration date
C. A renewable expiration date
D.A sliding commission rate depending on occupancy
A.
95
Should a licensee be found guilty of substantial, repeated misrepresentation or making dual sets of contracts,
A. His license may be revoked
B. He may be required to take additional education or training
C. He may be fined up to $2500
D. All of the above
D.
96
For a broker to act for more than one party in a real estate transaction without the knowledge and consent of all parties is
Grounds for disciplinary action
97
A phrase used to mean any communication beyond casual conversation about the facts and features of a property that leads to the discovery of confidential information.
Specific Assistance
98
In Iowa, how long does a listing agreement last?
Until closing
99
The Iowa Real Estate Education Fund is created as a financial assurance mechanism to assist in providing an education director and
regulatory compliance personnel.
100
Members of the commission are entitled to
A) actual expenses plus a stipend for each day of service.
B) an annual salary.
C) medical benefits.
D) no compensation because it is a volunteer position.
A) actual expenses plus a stipend for each day of service.
101
Once a licensee allows his license to expire, how long does that person have to reinstate the expired license without monetary penalty?
Up to 30 days
102
A buyer's agent showed an outside firm's listing that offered to pay the selling firm a 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, the buyer's agent's demands are
A) illegal; commission proposals cannot be include in an offer to purchase.
B) only legitimate if the seller accepts the buyer's terms.
C) okay with MLS approval.
D) legitimate if a written buyer's agency agreement has been signed.
A) illegal; commission proposals cannot be include in an offer to purchase.
103
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
A) returned to the buyer after the seller and buyer sign an earnest money release form.
B) returned to the buyer immediately.
C) forfeited by the buyer to the seller.
D) kept in the agent's file and used on the next offer.
A) returned to the buyer after the seller and buyer sign an earnest money release form.
104
A broker accepts a referral fee from an abstracting company for sending them the seller's business. The broker then collects a commission from his seller-client on the same transaction. This action is
A) not permitted for any reason.
B) okay as long as the broker doesn't tell the seller.
C) permitted as long as the broker discloses the accepted fee to the seller in writing.
D) permitted as long as the seller has received verbal notice from the broker.
C) permitted as long as the broker discloses the accepted fee to the seller in writing.
105
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
A) salesperson-in-charge.
B) principal broker.
C) broker-associate-in-charge of the branch office.
D) broker-in-charge of the parent office.
C) broker-associate-in-charge of the branch office.
106
The Iowa Real Estate Commission can investigate a licensee for all of the following EXCEPT
A) professional competency.
B) fraudulent representations.
C) use of untruthful statements in advertising.
D) a serious written complaint.
A) professional competency.
107
Iowa's replacement for title insurance is called
Title Guaranty.
108
Which ledger notifies the broker when money requested to be paid out of an account exceeds that which is in the account?
A) General ledger
B) Deposit ledger
C) Checking ledger
D) Individual ledger
D) Individual ledger
109
A written, appointed agency agreement with a seller must be determined, and all necessary forms must be executed
prior to entering into a listing agreement.
110
A prospective buyer is interested in seeing a house listed with a real estate company. The agent has not disclosed his company's agency policy. The listing agent can show the buyer the house if the
A) seller leaves during the showing.
B) buyer verbally agrees to buyer agency.
C) salesperson provides the buyer with a consensual dual agency form.
D) salesperson does not ask any questions of a confidential nature.
D) salesperson does not ask any questions of a confidential nature
111
In Iowa, a personal assistant does not have to have a real estate license and may perform many activities for the real estate licensee. However, which of the following activities requires that the assistant be licensed?
A) Preparing and distributing flyers and promotional materials for approval by the licensee
B) Explaining simple contract documents to prospective buyers
C) Assembling legal documents required for a closing
D) Forwarding calls from the public to a licensee
B) Explaining simple contract documents to prospective buyers
112
A broker's unlicensed assistant worked late to help ensure the successful closing of a difficult transaction. The assistant's extra work included making several phone calls to the prospective buyers, encouraging them to accept the seller's counteroffer. Largely because of the assistant's efforts, the sale went through with no problem. In addition to the assistant's regular salary, the broker wants to pay the assistant a percentage of the earned commission. Under Iowa law, the broker should
A) have not allowed the assistant to negotiate the transaction and cannot legally pay a commission for such negotiations.
B) compensate the assistant with a commission check.
C) not pay the assistant a commission but is permitted to give him a gift certificate.
D) pay the assistant, providing the broker reports the commission income to the IRS.
A) have not allowed the assistant to negotiate the transaction and cannot legally pay a commission for such negotiations.
113
An office manager for a local real estate firm is responsible for coordinating the flow of paperwork through the office, preparing forms and advertising copy, and hiring and supervising clerical personal. The office manager is
A) required to have a broker's license.
B) violating license law.
C) exempt from real estate licensing requirements.
D) required to have a salesperson's license.
C) exempt from real estate licensing requirements.
114
A buyer's agent writes an offer on another company's listing. The listing company
A) must allow the buyer's agent to be present when the offer is presented to the seller.
B) can refuse to have the buyer's agent present when the offer is presented to the seller.
C) can refuse to present the offer if the buyer does not want to give any earnest money.
D) can decline to present the offer if they think the price is too low.
A) must allow the buyer's agent to be present when the offer is presented to the seller.
115
Three weeks before a person began his real estate prelicensing education, he offered to help a neighbor sell her house. The neighbor agreed to pay the person a 5% commission. The neighbor accepted an offer while the person was taking the prelicensing 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 broker at the time of the alleged cause of action.
116
A person successfully completed prelicensing and passed the salesperson's test on November 16, 2014. What is the latest date on which the person may apply for a salesperson's license?
May 31, 2015
The law allows the applicant to apply up to the last working day of the sixth month following the qualifying examination
117
Which of the following is legal and will NOT subject an owner-broker to disciplinary action?
A) Use of improbable statements in advertisements
B) Habitual intoxication
C) Soliciting agents from other real estate agencies
D) Noncompliance with errors and omissions insurance requirements
C) Soliciting agents from other real estate agencies
Soliciting agents from other real estate agencies is an ethical, not a legal, issue
118
Although some transactions are exempt from the Seller's Property Condition Disclosure Act, which of the following must provide the disclosure?
A) Administrator of a decedent's estate
B) Father transferring property to a daughter
C) An owner selling a three-unit residential property
D) One former spouse to another when transferring the primary residence under a divorce settlement agreement
C) An owner selling a three-unit residential property
119
A salesperson sold a property when she was actively working for a broker. She left the company, the broker refused to pay her when the transaction closed. She files a complaint with the real estate commission. In this case, the real estate commission will
A) order immediate payment.
B) do nothing.
C) hold a hearing after a 20-day notice.
D) suspend the broker's license.
B) do nothing.
The real estate commission is not authorized to hold hearings involving disputes over commissions between brokers or salespeople.
120
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
A) legal because both parties agreed to the contract.
B) illegal in Iowa because of the automatic renewal clause.
C) legal because the automatic renewal clause is less than one year.
D) legal because it identifies a specific time limit.
B) illegal in Iowa because of the automatic renewal clause.
121
A requirement for obtaining a broker's license includes
A) having been actively engaged as a licensed salesperson for at least three years.
B) having successfully completed 60 hours of mandated real estate curriculum.
C) being of good moral character.
D) being at least 21 years of age.
Explanation
C) being of good moral character.
122
The commission has the authority to waive the experience requirement and allow the person to take the broker's exam, as long as the salesperson
gets a waiver letter from the Iowa Real Estate Commission.
123
In which of the following situations, though acting for another for some kind of fee, is a real estate license NOT required?
A) Procuring of prospects intended to result in the sale or lease of real estate
B) Auctioning others' personal property
C) Advertising yourself as being engaged in the business of real estate
D) Collecting rent for the use of real estate
B) Auctioning others' personal property
124
Which of the following is an example of a ministerial act?
A) Arguing the merits of an offer on behalf of a prospective buyer
B) Qualifying buyers to determine their buying power
C) Assisting a buyer through the closing
D) Responding to general questions about the price and location of specific property
D) Responding to general questions about the price and location of specific property
125
An appointed agent is working for a buyer-client who desires to purchase a house listed by another appointed agent from the same office. Which statement concerning any additional agency disclosures is TRUE?
A) If the appointed listing salesperson and the appointed selling salesperson are two different people, no additional disclosure is required.
B) The seller and the buyer must be informed of the situation and agree to a consensual dual agency arrangement.
C) The buyer's agent should refer the buyer to another brokerage firm to negotiate the sale.
D) The buyer's appointed agency status must be changed to that of a nonclient in order to purchase the house.
A) If the appointed listing salesperson and the appointed selling salesperson are two different people, no additional disclosure is required.
126
If a property management agreement is terminated between a broker and an owner, any unobligated funds must be distributed to the owner no later than
30 days after termination.
127
In Iowa, a personal assistant does not have to have a real estate license and may perform many activities for the real estate licensee. However, which of the following activities requires that the assistant be licensed?
A) Forwarding calls from the public to a licensee
B) Preparing and distributing flyers and promotional materials for approval by the licensee
C) Explaining simple contract documents to prospective buyers
D) Assembling legal documents required for a closing
C) Explaining simple contract documents to prospective buyers
128
A broker took a listing for a small office building. Because the property was in excellent condition and produced a good, steady income, the broker's salesperson decided to purchase it as an investment. If the salesperson actually purchased this property, the salesperson must
A) have a third party purchase the property on the salesperson's behalf.
B) ask her broker to cancel the listing and then make an offer to purchase.
C) require the seller to enter into a dual agency agreement.
D) inform the owner verbally that the salesperson is a licensee before providing specific assistance and in writing before making an offer.
D) inform the owner verbally that the salesperson is a licensee before providing specific assistance and in writing before making an offer.
129
Unlicensed support personnel for licensees may
A) independently host open houses and home show booths.
B) collect rents.
C) compute commission checks.
D) make cold calls to solicit listings.
C) compute commission checks.
130
Which of the following is TRUE regarding property management accounts?
A) Only a general ledger is required for a property management trust account.
B) They are required to be interest bearing.
C) They may be opened with or without a written property management agreement.
D) Receipts from property management and rental accounts may be deposited in a trust account separate from the mandated interest-bearing one.
D) Receipts from property management and rental accounts may be deposited in a trust account separate from the mandated interest-bearing one.
131
The transfer tax levied by the state on the property owner is based on the
selling price
132
Some individuals are exempt from the provisions of the Iowa Code regarding real estate licensing. However, who among the following must obtain a real estate license to perform the activity mentioned?
A) An unlicensed full-time employee who accepts a 3 percent commission for selling her employer's newly constructed house
B) A person who receives compensation for procuring prospective buyers or renters of real estate
C) An individual who is employed as a resident property manager
D) A property owner who sells or leases his or her own property
B) A person who receives compensation for procuring prospective buyers or renters of real estate
133
A licensed salesperson obtains a listing. Several days later, the salesperson meets a prospective buyer at the property and tells her, "I am the listing agent for this property and I'm very familiar with it. Would you like to make another offer?" The agent then writes up an offer for these buyers. Under these circumstances, the salesperson has
A) not yet properly disclosed his agency relationship with the buyer.
B) legally disclosed his agency obligations.
C) created an undisclosed dual agency relationship.
D) created an appointed agency agreement with the buyer.
A) not yet properly disclosed his agency relationship with the buyer.
134
A housing discrimination charge based on a violation of the Iowa Civil Rights Act must be filed with the Iowa Civil Rights Commission within
A) one year.
B) 60 days.
C) two years.
D) 300 days.
D) 300 days.
135
At least annually, the Iowa Real Estate Commission publishes, and mails upon request, the names of all licensees licensed in Iowa and the names
A) and addresses of all the approved real estate schools in Iowa.
B) of all the current members of the Iowa Real Estate Commission.
C) of all licensed appraisers in Iowa.
D) of those whose licenses have been suspended or revoked within the last year.
D) of those whose licenses have been suspended or revoked within the last year.
136
How many hours of continuing education may a licensee take online or home study?
A) 36
B) 12
C) 24
D) None
C) 24
137
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
A) returned to the buyer after the seller and buyer sign an earnest money release form.
B) forfeited by the buyer to the seller.
C) kept in the agent's file and used on the next offer.
D) returned to the buyer immediately.
A) returned to the buyer after the seller and buyer sign an earnest money release form.
138
When is a salesperson allowed to close a transaction?
under the direct supervision or with permission of the listing broker
139
If the seller is not available to sign the Groundwater Hazard Statement, who may sign instead?
A) Seller's agent
B) Buyer's broker
C) A notary
D) Buyer
A) Seller's agent
140
After listing a property, the agent refers the sellers to a home cleaning company that the agent has an ownership interest in. In this situation, the agent
A) must refer the sellers to a different cleaning company.
B) would be entering into a tying agreement.
C) should disclose the agent's ownership and financial interest in the cleaning company.
D) has broken the law.
C) should disclose the agent's ownership and financial interest in the cleaning company.
141
A listing broker may
A) refuse to let other companies show his listings.
B) solicit other companies' listed properties.
C) decline to present offers from other companies.
D) refuse to share his commission with other companies.
D) refuse to share his commission with other companies.
142
A new salesperson received his license on October 6, 2014. When will his license expire?
A) January 1, 2016
B) October 5, 2017
C) December 31, 2016
D) December 31, 2017
C) December 31, 2016
143
Asking a seller about her motivation for wanting to sell is called
A) an inquiry.
B) specific assistance.
C) a ministerial act.
D) general conversation.
B) specific assistance.
144
Specific assistance is defined as eliciting or accepting confidential information about a party's
real estate needs, motivation, or financial qualifications.
145
All of the following are protected under Iowa Fair Housing Laws EXCEPT
A) gender identity.
B) creed.
C) sexual orientation.
D) age.
D) age.
146
A salesperson who failed to submit the required continuing education hours for license renewal may continue with an inactive license in order to
A) sell a family member a company listing.
B) send a referral for a fee to an out-of-state real estate broker.
C) collect a commission on acts performed and which commission was earned prior to the license being placed on inactive status.
D) help any existing client who had previously signed an agency agreement.
C) collect a commission on acts performed and which commission was earned prior to the license being placed on inactive status.
147
On December 30, a licensee realizes that she has not taken the required continuing education course. If she sends in the proper fee along with the application to renew January 1, the license is \_\_\_
renewed on inactive status.
148
A broker entered into a listing agreement with a seller. Another broker, working with a buyer, learned about the property through the MLS. The cooperating broker would represent the
A) seller as a subagent.
B) buyer as a subagent.
C) buyer as an agent.
D) buyer as a nonclient.
C) buyer as an agent.
149
A complaint was filed against a licensee. The commission has determined that a contested case hearing must be held. How long before the hearing must the commission send a notice of the hearing along with a statement of the charges?
20 days
150
A broker that offers appointed agency must
A) be the seller's agent for all the properties they have listed.
B) have the same commission splits with all companies on the MLS.
C) have procedures in place that prohibit agents from sharing a client's confidential information with other agents in their office.
D) include a protective clause in all listings.
Explanation
C) have procedures in place that prohibit agents from sharing a client's confidential information with other agents in their office.
151
Disobedience to a real estate commission subpoena is
A) subject to a $1,000 fine.
B) a felony.
C) considered contempt of court.
D) a fraudulent act.
C) considered contempt of court.
152
If an agent's license expires on Saturday, December 31, the licensee may renew
A) before Saturday, December 31, to avoid a penalty payment.
B) on Wednesday, January 3, without paying a penalty.
C) on Tuesday, January 2, without paying a penalty.
D) on Tuesday, January 2, but has to pay a $25 penalty.
C) on Tuesday, January 2, without paying a penalty.
Any deadline for filing a document is extended to the next working day when the deadline falls on a Saturday, Sunday, or official state holiday.
153
Who among the following must have a real estate license in Iowa?
A) Employees of owners who on a regular, full-time basis perform real estate–related tasks on property owned by their employers
B) Attorneys-in-fact
C) Auctioneers who close farm sales
D) Administrators and executors
C) Auctioneers who close farm sales
Auctioneers are exempt as long as their role is limited to just the auctioning. When the auctioneer closes or attempts to close the transaction, licensing is required
154
A housing discrimination charge based on a violation of the Iowa Civil Rights Act must be filed with the Iowa Civil Rights Commission within
A) 300 days.
B) 60 days.
C) one year.
D) two years.
A) 300 days.
155
In Iowa, the Department of Revenue and Financing does NOT require the buyer or the seller to make a Declaration of Value Statement about
A) sales conditions that apply to the sale.
B) the total amount paid.
C) any known or discovered environmental hazards.
D) financial details if it is an individual contract sale.
C) any known or discovered environmental hazards.
156
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 the repairs. Which of the following is TRUE?
A) The additional repair costs must be covered by the broker and then billed to the owner.
B) The broker is allowed to borrow the funds from the trust account provided the general ledger balance remains in the black.
C) The broker must obtain the additional repair funds from the owner and not transfer them from one of the owner's other accounts.
D) The broker's action was appropriate as long as the individual ledgers properly reflect the broker's actions.
Explanation
D) The broker's action was appropriate as long as the individual ledgers properly reflect the broker's actions.
Explanation
157
Which of the following is NOT a penalty available to the commission?
A) Additional education
B) 30 days in jail
C) A fine
D) Probation
B) 30 days in jail
The real estate commission has a number of penalties available, including suspension, revocation, additional education, probation, and fines up to $2,500. Jail time is not an option.
158
If a salesperson member of the Iowa Real Estate Commission elects to become a broker associate during her appointment to the commission, she
A) must resign from the commission.
B) will automatically be reappointed as a broker member of the commission.
C) may complete her term as a salesperson but will lose eligibility for reappointment as a salesperson if she is the only salesperson member.
D) may complete her term as a salesperson and still be eligible for reappointment as a salesperson for another three years.
C) may complete her term as a salesperson but will lose eligibility for reappointment as a salesperson if she is the only salesperson member.
159
In a listing agreement, which of the following is legal?
A) Not using a specific termination date
B) Not giving a copy of the listing to the owner as soon as practical
C) Not specifying a rate of commission
D) Not including a broker's protection clause
D) Not including a broker's protection clause
160
A real estate salesperson has been working with a couple to purchase a home. After helping them negotiate for their home, the buyers ask the salesperson if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for referring buyers to the lender. Should the salesperson refer the buyers to this lender?
A) No, because acceptance of a fee from a lender would be in violation of Iowa code.
B) Yes, if only the buyer is seeking a conventional loan.
C) No, unless the salesperson discloses the referral fee to the buyers.
D) Yes, if the salesperson and the buyers have a written buyer agency agreement.
A) No, because acceptance of a fee from a lender would be in violation of Iowa code.
161
Which of the following activities requires a real estate license?
A) An executor sells a decedent's building.
B) A company procures tenants for landlords for a fee.
C) A resident on-site manager collects rents on behalf of the building owner.
D) An auctioneer conducts the sale of a 160-acre farm but does not close the sale.
B) A company procures tenants for landlords for a fee.
162
During each three-year licensing period, a licensee may
A) anytime within the three years take and pass the appropriate real estate exam in lieu of continuing education.
B) repeat a course if the course numbers and instructors are different.
C) take 24 hours of mandatory and 12 hours of approved, elective continuing education.
D) take 36 hours of continuing education by correspondence.
B) repeat a course if the course numbers and instructors are different.
163
A broker can extend all of the following through the MLS EXCEPT
A) subagency
B) cooperation.
C) referrals.
D) compensation.
A) subagency
164
Which of the following rises to the level of specific assistance?
A) Establishing a listing price range with a seller
B) Responding to telephone inquiries from a consumer concerning the price or location of property
C) Attending an open house and responding to customer questions
D) Responding to telephone inquiries by consumers as to the pricing of brokerage services
A) Establishing a listing price range with a seller
165
Which of the following is TRUE regarding informal discussions conducted by the commission?
A) It is held in an open session.
B) Legal council is not permitted to be present.
C) Attendance is mandatory.
D) A licensee's employing broker is always invited.
D) A licensee's employing broker is always invited.
166
In order for a broker to receive compensation in a real estate transaction, the broker must have
A) a signed brokerage agreement.
B) an agency agreement.
C) at least one salesperson.
D) an office in a commercially-zoned area.
A) a signed brokerage agreement.
167
A broker going out of business wants to sell his listings to another company and is
A) not eligible to do so because the listings belong to the listing agent.
B) eligible to sell them only to his agents.
C) eligible to do so with the written consent of all parties to the listing agreement.
D) not eligible to do so because all listings must expire.
C) eligible to do so with the written consent of all parties to the listing agreement.
168
A salesperson's license was revoked for representing two parties in a single transaction without the knowledge of both. If the employing broker clearly instructed all agents regarding the company's written duel agency policy's and did not have any guilty knowledge and did not conspire to cover up the incident, the commission will
A) revoke the employing broker's license.
B) neither suspend nor revoke the broker's license.
C) suspend the employing broker's license.
D) fine the broker for failure to supervise.
B) neither suspend nor revoke the broker's license.
169
If requested, and after the acceptance of an offer, a broker is required to furnish a detailed progress report to the buyer and/or the seller at
A) reasonable intervals.
B) 60-day intervals.
C) 45-day intervals.
D) 15-day intervals.
A) reasonable intervals.
170
The transfer tax levied by the state on the property owner is based on the
A) seller's equity position.
B) assessed value.
C) appraised value.
D) selling price.
D) selling price.
171
Real estate brokerage firms that allow affiliated licensees to hire personal assistants must
A) accept primary responsibility for supervising the personal assistants.
B) allow licensed personal assistants to work for other salespeople from other brokerage firms, too.
C) obtain workers' compensation insurance for all unlicensed personal assistants.
D) implement a written policy authorizing the practice and identifying the duties the assistants can perform.
D) implement a written policy authorizing the practice and identifying the duties the assistants can perform
172
If a broker establishes a trust account in an FDIC or NCUA institution to hold money belonging to others, which of the following is TRUE?
A) Accounts may be labeled either "trust" or "escrow."
B) All checks, deposit slips, and bank statements must include the word "trust" as part of the account name.
C) The account cannot be in the same bank as the broker's personal checking account.
D) The account is non-interest-bearing.
B) All checks, deposit slips, and bank statements must include the word "trust" as part of the account name.
