Iowa Real Estate Exam Practice Questions and 100% Correct 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 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 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? 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 A How soon must the broker deposit the earnest money into the broker's trust account after an offer to purchase has been made? Within five banking days of acceptance of offer 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 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 Give all the earnest money to the seller, then bill the seller for commission