Iowa Real Estate EXAM 2025 QUESTIONS
AND ANSWERS
Two individuals form a partnership to open a real estate company. Which of the following is
correct regarding licensing requirements?
A. Both must licensed brokers
B. At least one of them must be a broker
C. If one is a broker, the other must be a sales person
D. They can hire a licensed broker to run the company and neither needs a license - ANS B
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 - ANS Is selling his or her own property
A salesperson living in Des Moines, holds an inactive Iowa salesman's license. Which of the
following acts may she perform? - ANS cannot list or sell homes anywhere in Iowa
A licenses 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 a different commission splits with sales people within the company
D. Establish a commission rate without notifying the local MLS - ANS A
How soon must the broker deposit the earnest money into the broker's trust account after an
offer to purchase has been made? - ANS Within five banking days of acceptance of offer
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, Which of the following events may happen regarding a disciplinary action involving a real estate
licensee?
A. License 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 fraud
D. License may never be suspended without holding a hearing first - ANS D
A buyer backs out of a transaction just before closing and agrees to forfeit the $6,000 of
earnest money. The seller agrees that the broker has earned $2,000 even though the closing
did not take place. To collect the commission, the broker should - ANS Give all the earnest
money to the seller, then bill the seller for commission
Under what circumstances may a salesperson accept an earnest money check from a buyer that
cannot immediately be cashed? - ANS If it is okay with the seller and the fact has been
written in the offer
Two contracts exist between a buyer and 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 know as - ANS Dual contracts and is illegal
The broker has included a protection clause in the listing agreement with the seller. who does
the protection clause protect? - ANS Principal broker representing the buyer
A person has an inactive Iowa real estate salesman's license. Which of the following is required?
- ANS Renewal of inactive license every three years
The principal broker has set a minimum fee. The salesperson must charge this fee or more
whenever a listing is taken. This action is - ANS A legal business practice
The seller's agent would be entitled to compensation from his principal under a(n) -
2
ANS Exclusive right to sell listing agreement
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@COPYRIGHT BRAINBARTER 2025/2026
AND ANSWERS
Two individuals form a partnership to open a real estate company. Which of the following is
correct regarding licensing requirements?
A. Both must licensed brokers
B. At least one of them must be a broker
C. If one is a broker, the other must be a sales person
D. They can hire a licensed broker to run the company and neither needs a license - ANS B
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 - ANS Is selling his or her own property
A salesperson living in Des Moines, holds an inactive Iowa salesman's license. Which of the
following acts may she perform? - ANS cannot list or sell homes anywhere in Iowa
A licenses 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 a different commission splits with sales people within the company
D. Establish a commission rate without notifying the local MLS - ANS A
How soon must the broker deposit the earnest money into the broker's trust account after an
offer to purchase has been made? - ANS Within five banking days of acceptance of offer
1
Page
@COPYRIGHT BRAINBARTER 2025/2026
, Which of the following events may happen regarding a disciplinary action involving a real estate
licensee?
A. License 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 fraud
D. License may never be suspended without holding a hearing first - ANS D
A buyer backs out of a transaction just before closing and agrees to forfeit the $6,000 of
earnest money. The seller agrees that the broker has earned $2,000 even though the closing
did not take place. To collect the commission, the broker should - ANS Give all the earnest
money to the seller, then bill the seller for commission
Under what circumstances may a salesperson accept an earnest money check from a buyer that
cannot immediately be cashed? - ANS If it is okay with the seller and the fact has been
written in the offer
Two contracts exist between a buyer and 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 know as - ANS Dual contracts and is illegal
The broker has included a protection clause in the listing agreement with the seller. who does
the protection clause protect? - ANS Principal broker representing the buyer
A person has an inactive Iowa real estate salesman's license. Which of the following is required?
- ANS Renewal of inactive license every three years
The principal broker has set a minimum fee. The salesperson must charge this fee or more
whenever a listing is taken. This action is - ANS A legal business practice
The seller's agent would be entitled to compensation from his principal under a(n) -
2
ANS Exclusive right to sell listing agreement
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@COPYRIGHT BRAINBARTER 2025/2026
