Iowa Real Estate Salesperson
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A licensee is preparing a comparative market analysis for a seller. Which
factor is most critical in determining the fair market value of the property?
A) The original purchase price paid by the seller
B) The assessed value determined by the county assessor
C) Recent sales prices of comparable properties in the same neighborhood
D) The seller's desired net proceeds from the transaction
Answer: Recent sales prices of comparable properties in the same
neighborhood
*Rationale: Comparable sales, or "comps," are the foundation of market
value determination because they reflect actual buyer behavior in the
current market. Original price, assessed value, and seller expectations do
not establish fair market value. *
2. A buyer submits an offer on a property, and the seller counters with a
higher price. The buyer rejects the counteroffer. What is the legal status of
the original offer?
A) It remains active until the buyer withdraws it in writing
B) It is automatically renewed for 72 hours
C) It is terminated and cannot be accepted later
D) It becomes an option contract binding both parties
, Answer: It is terminated and cannot be accepted later
*Rationale: A counteroffer acts as a rejection of the original offer,
terminating it. The original offer cannot be revived without a new offer
from the buyer. *
3. Which of the following is an example of a material fact that must be
disclosed by a seller's agent in Iowa?
A) The seller's financial motivation for selling
B) The property was previously listed at a lower price
C) The presence of a registered sex offender in the neighborhood
D) A leaky roof that has been repaired
Answer: The presence of a registered sex offender in the neighborhood
*Rationale: Iowa law requires disclosure of material facts that could affect
a buyer's decision, including Megan's Law disclosures. Financial
motivation and prior list prices are not material facts, and repaired issues
may not require disclosure if properly fixed. *
4. A licensee is showing a property to a buyer. The buyer asks about the ethnic
composition of the neighborhood. How should the licensee respond?
A) Provide demographic data from the most recent census
B) Refuse to answer and redirect the conversation to property features
C) Answer honestly based on personal knowledge
D) Refer the buyer to online neighborhood data sources
Answer: Refuse to answer and redirect the conversation to property
features
*Rationale: Discussing ethnic composition could be perceived as steering
or discriminatory under fair housing laws. Licensees must avoid any
discussion that could facilitate housing discrimination. *
,5. In an Iowa residential real estate transaction, when is earnest money
typically delivered to the seller or escrow agent?
A) At the time the purchase agreement is signed
B) At the closing of the transaction
C) Within 10 business days after the inspection
D) Only if the buyer obtains financing approval
Answer: At the time the purchase agreement is signed
*Rationale: Earnest money is generally deposited when the purchase
agreement is executed to demonstrate the buyer's good faith and
commitment to the transaction. *
6. A seller receives multiple offers on their property. Which of the following is
legally permissible for the seller's agent to disclose to potential buyers?
A) The exact amount of the highest competing offer
B) The number of offers received
C) The identity of other buyers submitting offers
D) The terms of the lowest offer to encourage higher bids
Answer: The number of offers received
*Rationale: Licensees may disclose that multiple offers have been
received but must maintain confidentiality regarding the specific terms,
amounts, and identities of other buyers unless authorized by those
buyers. *
7. Which agency relationship in Iowa provides the most limited level of
representation to a consumer?
A) Buyer's agency
B) Seller's agency
C) Transaction broker
D) Dual agency
Answer: Transaction broker
*Rationale: A transaction broker facilitates the transaction without
, representing either party in a fiduciary capacity, providing limited duties
of honesty, fairness, and disclosure without the full fiduciary obligations
of a traditional agency. *
8. A buyer's agent discovers a significant foundation issue during a home
inspection. What is the agent's primary duty?
A) Withhold the information to protect the seller's position
B) Immediately disclose the finding to the buyer and advise on further
inspection
C) Recommend the buyer withdraw the offer without explanation
D) Inform the seller's agent but not the buyer to maintain confidentiality
Answer: Immediately disclose the finding to the buyer and advise on
further inspection
*Rationale: The agent has a fiduciary duty to the buyer to disclose
material facts that affect the property's value or safety and should guide
the buyer toward making an informed decision. *
9. In Iowa, what is the maximum commission that can be charged by a real
estate licensee without a written agreement?
A) 6% of the sales price
B) No commission can be charged without a written agreement
C) 10% of the sales price
D) The customary rate in the local market
Answer: No commission can be charged without a written agreement
*Rationale: Iowa law requires a written listing agreement or buyer
representation agreement specifying the commission terms before any
compensation can be earned or collected. *
10.A buyer is purchasing a property with a federally-backed loan. Which of the
following is true regarding the appraisal requirement?
Examination Questions And Correct
Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. A licensee is preparing a comparative market analysis for a seller. Which
factor is most critical in determining the fair market value of the property?
A) The original purchase price paid by the seller
B) The assessed value determined by the county assessor
C) Recent sales prices of comparable properties in the same neighborhood
D) The seller's desired net proceeds from the transaction
Answer: Recent sales prices of comparable properties in the same
neighborhood
*Rationale: Comparable sales, or "comps," are the foundation of market
value determination because they reflect actual buyer behavior in the
current market. Original price, assessed value, and seller expectations do
not establish fair market value. *
2. A buyer submits an offer on a property, and the seller counters with a
higher price. The buyer rejects the counteroffer. What is the legal status of
the original offer?
A) It remains active until the buyer withdraws it in writing
B) It is automatically renewed for 72 hours
C) It is terminated and cannot be accepted later
D) It becomes an option contract binding both parties
, Answer: It is terminated and cannot be accepted later
*Rationale: A counteroffer acts as a rejection of the original offer,
terminating it. The original offer cannot be revived without a new offer
from the buyer. *
3. Which of the following is an example of a material fact that must be
disclosed by a seller's agent in Iowa?
A) The seller's financial motivation for selling
B) The property was previously listed at a lower price
C) The presence of a registered sex offender in the neighborhood
D) A leaky roof that has been repaired
Answer: The presence of a registered sex offender in the neighborhood
*Rationale: Iowa law requires disclosure of material facts that could affect
a buyer's decision, including Megan's Law disclosures. Financial
motivation and prior list prices are not material facts, and repaired issues
may not require disclosure if properly fixed. *
4. A licensee is showing a property to a buyer. The buyer asks about the ethnic
composition of the neighborhood. How should the licensee respond?
A) Provide demographic data from the most recent census
B) Refuse to answer and redirect the conversation to property features
C) Answer honestly based on personal knowledge
D) Refer the buyer to online neighborhood data sources
Answer: Refuse to answer and redirect the conversation to property
features
*Rationale: Discussing ethnic composition could be perceived as steering
or discriminatory under fair housing laws. Licensees must avoid any
discussion that could facilitate housing discrimination. *
,5. In an Iowa residential real estate transaction, when is earnest money
typically delivered to the seller or escrow agent?
A) At the time the purchase agreement is signed
B) At the closing of the transaction
C) Within 10 business days after the inspection
D) Only if the buyer obtains financing approval
Answer: At the time the purchase agreement is signed
*Rationale: Earnest money is generally deposited when the purchase
agreement is executed to demonstrate the buyer's good faith and
commitment to the transaction. *
6. A seller receives multiple offers on their property. Which of the following is
legally permissible for the seller's agent to disclose to potential buyers?
A) The exact amount of the highest competing offer
B) The number of offers received
C) The identity of other buyers submitting offers
D) The terms of the lowest offer to encourage higher bids
Answer: The number of offers received
*Rationale: Licensees may disclose that multiple offers have been
received but must maintain confidentiality regarding the specific terms,
amounts, and identities of other buyers unless authorized by those
buyers. *
7. Which agency relationship in Iowa provides the most limited level of
representation to a consumer?
A) Buyer's agency
B) Seller's agency
C) Transaction broker
D) Dual agency
Answer: Transaction broker
*Rationale: A transaction broker facilitates the transaction without
, representing either party in a fiduciary capacity, providing limited duties
of honesty, fairness, and disclosure without the full fiduciary obligations
of a traditional agency. *
8. A buyer's agent discovers a significant foundation issue during a home
inspection. What is the agent's primary duty?
A) Withhold the information to protect the seller's position
B) Immediately disclose the finding to the buyer and advise on further
inspection
C) Recommend the buyer withdraw the offer without explanation
D) Inform the seller's agent but not the buyer to maintain confidentiality
Answer: Immediately disclose the finding to the buyer and advise on
further inspection
*Rationale: The agent has a fiduciary duty to the buyer to disclose
material facts that affect the property's value or safety and should guide
the buyer toward making an informed decision. *
9. In Iowa, what is the maximum commission that can be charged by a real
estate licensee without a written agreement?
A) 6% of the sales price
B) No commission can be charged without a written agreement
C) 10% of the sales price
D) The customary rate in the local market
Answer: No commission can be charged without a written agreement
*Rationale: Iowa law requires a written listing agreement or buyer
representation agreement specifying the commission terms before any
compensation can be earned or collected. *
10.A buyer is purchasing a property with a federally-backed loan. Which of the
following is true regarding the appraisal requirement?
