IA LAW ADMIN Flashcards
Required to engage in real estate services. Sales associates achieve “this status” by finding and employer and filing with the IREC
Active license
In addition to the completed application form, the application package to the IREC must include:
- 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
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.
The last working day of the sixth calendar month following the qualifying examination
Where a licensee receives letters and so forth through the US Postal Service.
Current mailing address
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.
210 calendar days
All individual licenses expire on
December 31 of the third year of licensure.
First-time license applicants are not allowed to file for an
“inactive” license (The applicant must first receive an active license that may be placed on inactive status at a later date)
Individuals whose licenses are on inactive status with the IREC are not required to carry ( A ? ), but they are required to ( B ? )
A. Errors and omissions insurance;
B. Renew their license every three years.
Invalid, without force, no longer effective.
Void
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.
Inactive (Voluntary)
The mission of the ( ? ) is to protect the public through the examination, licensing, and regulation of real estate brokers, salespersons, and firms…
IREC (Iowa Real Estate Commision)
Commisioner appointments are for
a. two years.
b. three years.
c. five years.
d. seven years.
B
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. 7
B. Governor
C. Iowa State Senate
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.
E&O Insurance (Errors and Omissions)
Of the 7 IREC members, ( A? ) members are Iowa real estate licensees and ( B ?) are nonlicensees who represent the public.
A.5
B.2
To conduct business, a majority of Commission members constitues a:
Quorum
No IREC member is allowed to serve more than ( _A? )_consecutive terms, or ( B? ) years, total.
A. 3
B. 9
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
Iowa Administrative Code Chapter 193E
Promote or make widely known (an idea or cause) ; put (a law or decree) into effect by official proclamation.
Promulgate
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
Real Estate License
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.210
B. 210
True of False: In Iowa, there are no residency requirements or any U.S. citizenship requirement
True
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.
2
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 ( ? )
At least five years
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,
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.
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
If denied a license, the applicant has ( ? ) to request a discovery hearing
30 Days
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
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
Each actively licensed broker associate and salesperson must be licensed under a ( ? )
Designated broker
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
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)
A Broker candidate must be actively licensed as a salesperson for at least ( ? )
24 months
Qualified applicants for a broker’s license must complete a Commission-approved course of at least
72 classroom hours
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.)
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
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
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.
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
How much is the transfer tax in Iowa?
No tax on first $500 of sale price; $80 per $500 after that.
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
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
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
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)
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
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
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
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
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
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
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
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
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
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
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
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
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
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
IREC’s Mission is
To protect the public
How long does a brokerage agreement last?
Until closing
The list of people to be ‘protected’ in a protection clause must be given to
The seller, before the listing agreement ends
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
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
A licensee moved from one Iowa town to another. How soon must he inform the commission?
Within 5 days
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
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
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
