Free Iowa State Portion — Broker Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Iowa State Portion — Broker practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Iowa salesperson has been actively licensed for 18 months and has completed the required broker education. What experience requirement remains before the person may qualify for an Iowa broker license by examination?

   1. A. 6 additional months of active salesperson experience
   2. B. 12 additional months of active salesperson experience
   3. C. 18 additional months of active salesperson experience
   4. D. 24 additional months of active salesperson experience

   Answer: A

   Explanation: Rule 481—2003.1 requires the qualifying salesperson to have been “actively licensed for not less than 24 months.” Eighteen months therefore leaves six months.

   Reference: Iowa Administrative Code — Chapter 481.2003 — §2003.1(2)

2. 2On what date do Iowa real estate licenses normally expire in their scheduled renewal year?

   1. A. June 30
   2. B. September 30
   3. C. November 30
   4. D. December 31

   Answer: D

   Explanation: Rule 481—2003.3(2) states, “Licenses expire on December 31 of the third year of the license term.” December 31 is correct.

   Reference: Iowa Administrative Code — Chapter 481.2003 — §2003.3

3. 3What is the maximum civil penalty the Iowa commission may impose for each separate license-law violation?

   1. A. $1,000
   2. B. $2,500
   3. C. $5,000
   4. D. $10,000

   Answer: B

   Explanation: Rule 481—2018.14 authorizes civil penalties but says the amount “does not exceed $2,500 per violation.” The maximum is $2,500.

   Reference: Iowa Administrative Code — Chapter 481.2018 — §2018.14

4. 4Unless the contract directs otherwise, within how many banking days after final acceptance must an Iowa broker deposit trust funds?

   1. A. Two banking days
   2. B. Three banking days
   3. C. Five banking days
   4. D. Seven banking days

   Answer: C

   Explanation: Rule 481—2013.1 requires that “All trust funds are deposited into the trust account no later than five banking days” after the last signature of acceptance. Five banking days is correct.

   Reference: Iowa Administrative Code — Chapter 481.2013 — §2013.1

5. 5What is the maximum term of an Iowa brokerage agreement for residential property?

   1. A. Six months
   2. B. One calendar year
   3. C. Eighteen months
   4. D. Two calendar years

   Answer: B

   Explanation: Rule 481—2011.1 requires “a definite expiration date not to exceed one calendar year in length from the effective date, for residential properties.” One calendar year is the maximum.

   Reference: Iowa Administrative Code — Chapter 481.2011 — §2011.1

6. 6When must an Iowa licensee make the initial verbal disclosure of the brokerage relationship?

   1. A. Before providing specific assistance
   2. B. After the first written offer
   3. C. At closing
   4. D. After possession transfers

   Answer: A

   Explanation: Rule 481—2012.2(2) says the verbal disclosure is made “prior to the licensee’s providing specific assistance to the client or nonrepresented customer.” Option A is correct.

   Reference: Iowa Administrative Code — Chapter 481.2012 — §2012.2

7. 7For which Iowa residential transfer does the statutory seller disclosure generally apply?

   1. A. A property containing one to four dwelling units
   2. B. A property containing five to eight dwelling units
   3. C. Only unimproved agricultural land
   4. D. Only an office tower

   Answer: A

   Explanation: Iowa Code §558A.1 defines a covered transfer to include property that “includes at least one but not more than four dwelling units.” Option A is correct, subject to the section's listed exclusions.

   Reference: 558 a — §558A.1

8. 8May an unlicensed assistant in an Iowa brokerage independently show property for sale to a prospective buyer?

   1. A. No, independently showing sale property is barred
   2. B. Yes, after 24 hours' notice
   3. C. Yes, for vacant property only
   4. D. Yes, if no price is discussed

   Answer: A

   Explanation: Rule 481—2007.13(4) lists “Showing property for sale independently” among barred activities. Option A is correct.

   Reference: Iowa Administrative Code — Chapter 481.2007 — §2007.13

9. 9An Iowa licensee acquires an ownership interest in property involved in a transaction. What must the licensee do?

   1. A. Disclose the interest in writing to all parties
   2. B. Disclose only after recording the deed
   3. C. Report only to the county assessor
   4. D. Place the interest in the trust account

   Answer: A

   Explanation: Rule 481—2007.8 requires that “the licensee provides written disclosure of that interest to all parties to the transaction.” Option A is correct.

   Reference: Iowa Administrative Code — Chapter 481.2007 — §2007.8

10. 10What authority must an Iowa broker hold before managing real property for an owner?

    1. A. A current written property-management agreement or other written owner authorization
    2. B. An oral agreement witnessed by a tenant
    3. C. A county assessor's authorization
    4. D. A lender's servicing agreement

    Answer: A

    Explanation: Rule 481—2015.1 bars the listed management activities unless “the licensee’s broker holds a current written property management agreement or other written authorization signed by the owner.” Option A is correct.

    Reference: Iowa Administrative Code — Chapter 481.2015 — §2015.1