Real Estate Quiz Flashcards

Question

An inactive licensee must: a. maintain errors and omissions (E&O) insurance. b. conduct one transaction per year. c. renew every three years. d. take 36 hours of continuing education every three years.

Answer 1

c. renew every three years. The inactive licensee must renew the inactive license every three years. The inactive licensee is not required to maintain E&O insurance, take continuing education courses, and may not conduct any real estate transactions.

Answer 2

d. December 31, 2016. Iowa real estate licenses are issued for a full three years, counting the remaining portion of the year issued as a full year.

Answer 3

a. December 31 of the third year of licensure Regardless of the date of issuance, all licenses are issued for three-year terms, counting the remaining portion of the year issued as a full year. All individual licenses expire after three years.

Answer 4

c. of those whose licenses have been suspended or revoked within the last year. The commission, at least annually, prepares a list of the names and addresses of all licensees and all persons whose licenses have been suspended or revoked within the last year and provides it to any person in Iowa upon request.

Answer 5

a. The answer is the commission must be notified, in writing, of a change of residence or mailing address. The Iowa Real Estate Commission requires written notification in order to keep the licensee informed of any and all legal changes via the commission’s newsletter but will not issue a new license because of the salesperson’s change of address. The Iowa Real Estate Commission has the power to fine a licensee $2,500 for failure to notify it of a personal change of address . Failure to notify the Iowa Real Estate Commission is prima facie evidence of a violation of the Iowa Code.

Answer 6

a. The answer is none of these. After a license expires on December 31, there is no time limit in which to renew without penalty. Iowa law allows a licensee to reinstate within the first 30 days but assesses a $25 penalty on top of the normal renewal fee. On January 31, the penalty becomes $50. Iowa law allows a licensee whose license has expired up to three years to reinstate without starting over with prelicensing. However , in addition to paying the normal renewal fee, the licensee must either pass a new examination or pay a reinstatement penalty of $25 per month for each month of expiration up to $900.

Answer 7

d. on or before December 31 of every third year. | Real estate licenses must be renewed on or before December 31 every three years.

Answer 8

a. renew the license every three years. To renew on inactive status, the only requirement is to just renew your license. Education is only required to renew on active status.

Answer 9

a. Iowa Real Estate Commission By legislative rule, the Iowa Real Estate Commission administers real estate license law. The attorney general’s office handles the sale of out of-state subdivided land but does not administer license law. The Iowa Association of REALTORS® is a trade association whose members must have a real estate license, but not all licensees are REALTORS®. HUD is a federal government agency supervising housing issues but not real estate licensees.

Answer 10

d. governor, subject to senate approval. The governor makes the appointments subject to confirmation by the state senate. The Iowa Association of REALTORS® is a trade association that could recommend names to the governor’s office, but the governor’s office is not bound by its recommendations. Neither the public nor the attorney general’s office has the authority to appoint members to the commission.

Answer 11

d. make and enforce the rules by which all real estate licensees must abide. The Iowa legislature enacts the law under 5438 of the Iowa Code, whereas the Iowa Real Estate Commission is authorized by state law to write rules and regulations that have the force of law. The exam questions are written by an independent testing service and reviewed by the real estate commission. The testing service administers the exams.

Answer 12

a. five licensed and two unlicensed. The correct mix is five licensed and two unlicensed. The unlicensed members represent the public and give balance to the commission. At least one of the five licensed members must be a salesperson. This mix helps to ensure fair representation for both real estate agents and the public. The members must live in seven different Iowa counties.

Answer 13

a. three years. Iowa Code establishes appointments and reappointments as three-year terms. The member may serve three full terms (nine years) or two full terms after completing a partial term.

Answer 14

c. may complete her term as a salesperson but will lose eligibility for reappointment as a salesperson if she is the only salesperson member. At least one of the licensed members of the commission is required to be a licensed salesperson. Should a salesperson become a licensed broker during a term in office, she may complete the term but is eligible for reappointment on the commission as a licensed broker if there are other salespersons serving as members. The salesperson is not required to resign the position. The state does not allow any automatic reappointments.

Answer 15

b. Members are not allowed to hold any other elective or appointed state or federal office simultaneously. Members of the commission are prohibited from holding any elective or appointed state or federal office that would create a conflict of interest. Instead of one commissioner, the commission in Iowa consists of five licensed members and two unlicensed members to protect the public. They are appointed by the governor, are confirmed by the state senate, and serve three-year terms that can be repeated three times.

Answer 16

c. actual expenses plus a stipend for each day of service. Members of the real estate commission are to be reimbursed for their actual expenses and are eligible to receive a daily stipend for service. There is no annual salary or medical benefits.

Answer 17

a. the real estate commission’s proceedings and copies of papers used in court. The real estate commission seal is used to authenticate its proceedings. All copies of paper documents thus duly certified and authenticated can be received in evidence in all courts and are considered equal to the original.

Answer 18

c. do nothing. The real estate commission is not authorized to hold hearings involving disputes over commissions between brokers or salespeople.

Answer 19

a. Agreeing with a seller to accept more than the normal brokerage commission rate. Commission rates are always negotiable between the seller and the broker. The Iowa Real Estate Commission may revoke a broker’s license if the licensee has been convicted of a felony or found guilty of false advertising. Depositing earnest money into a personal checking account, rather than the required brokerage trust account, is prohibited.

Answer 20

a. complete 36 hours of commission-approved continuing education within the last three years. To renew a license to active status in Iowa, licensees must take 36 hours of continuing education within the preceding three years. The renewal fee is $125, and 18 hours is the maximum (of the 36 hours) permitted for correspondence/home study education.

Answer 21

d. a phone complaint from the public. There must be some valid reason to undertake an investigation. Such a motivation can include the commission’s own initiative, a motion from the commission, or a written complaint from a consumer. Random selection can be done for errors and omissions (E&O) insurance and claimed education credits.

Answer 22

c. statement of the possible punishments. The commission does not forward a statement about the possible punishments. However, it does reference the fact that any party to a commission hearing has the right to have legal counsel present, the statutes and rules involved, and a statement of its legal authority to conduct the hearing.

Answer 23

d. professional competency. The commission would not investigate a licensee for professional competency. However, they would investigate for professional incompetence as well as the use of untruthful statements in advertising. The commission can investigate a licensee upon its own motion or written complaints.

Answer 24

a. Revocation of any professional license Revocation of any professional license held by a licensee in this state or any jurisdiction is grounds for a hearing. Lack of clarity on an issue, triviality of the complaint, insufficient evidence, an effort to resolve the problem on a local level, and lack of jurisdiction are all reasons for refusing to set a hearing by the real estate commission.

Answer 25

a. real estate commission. The Iowa Real Estate Commission has the power to execute and sign the necessary subpoenas for attendance and testimony of any witness and the producing of any paper or books.

Answer 26

c. considered contempt of court. | Any failure to obey such an order may be punished as contempt of court.

Answer 27

a. commissions between cooperating real estate firms. The rules specifically indicate that the Iowa Real Estate Commission will not get involved with disputes regarding commissions between cooperating real estate firms. The commission can get involved when an offer has not been presented or someone else’s listing has been solicited, and over the timely return of a salesperson’s license to the commission.

Answer 28

d. 20 days A written notice of hearing, together with a statement of the charges, must be mailed to the last known business address of the licensee by certified mail at least 20 days before the hearing.

Answer 29

c. 1O days. | The licensee must respond to the written notice of a hearing within 10 days after receipt of the notice.

Answer 30

a. must contain a concise statement of the facts. Complaints are made in writing and signed by the complainant with a concise statement of the facts. It may be personally delivered or delivered by regular mail to the executive secretary of the commission at the commission office. Sworn statements are made at the hearing.

Answer 31

d. A licensee’s employing broker is always invited. The disciplinary committee conducts informal, fact-finding discussions and requests the presence of both licensee and employing broker. The licensee and employing broker are not required to attend or participate, but if they elect to do so, legal council may represent them. All informal discussions are held in closed sessions.

Answer 32

d. authorized penalties that the commission may impose. The notice does not contain any information pertaining to the authorized penalties that the commission could impose. The notice of the hearing will contain the date, time, and place of the hearing; a statement requiring the respondent to acknowledge receipt of the notice; a statement requiring the respondent to furnish place of the hearing; a statement requiring the respondent to acknowledge receipt of the notice; and a statement requiring the respondent to furnish the commission with a list of potential witnesses.

Answer 33

a. The relative seriousness of the violation as it relates to other real estate agents In determining the nature and severity of disciplinary sanctions imposed against a licensee, the commission does not consider the relative seriousness of the violation as it relates to other real estate agents. The commission’s purpose is to protect the public. They are concerned about the relative seriousness of the violation as it relates to assuring citizens that licensees maintain professional competency

Answer 34

a. $2,500. | The civil penalty for engaging in activities requiring a license when a license is inactive is $2,500.

Answer 35

c. 30 days in jail The real estate commission has a number of penalties available, including suspension, revocation, additional education, probation, and fines up to $2,500. Jail time is not an option.

Answer 36

a. returned to the commission and placed on inactive status. If the real estate company’s license is suspended or revoked, all the salespeople’s and associate brokers’ licenses are returned to the real estate commission and placed on inactive status until they are “hired” by a new broker.

Answer 37

d. Soliciting agents from other real estate agencies Soliciting agents from other real estate agencies is an ethical, not a legal, issue. The broker can get his or her license suspended or revoked for improbable advertising , habitual intoxication, and not complying with the real estate commission errors and omissions insurance requirements.

Answer 38

d. $2,500. | The maximum civil penalty in Iowa for failing to keep a broker informed is $2,500.

Answer 39

a. 10 calendar days. The broker is required to ensure the accuracy of information and upon becoming aware of a material error must promptly take corrective measures within 1O calendar days.

Answer 40

a. repeat a course if the course numbers and instructors are different. Courses can be repeated if the course numbers and instructors are different. Licensing law only allows 18 hours of continuing education be taken by correspondence/home study. To remain an active licensee , 12 hours of mandatory and 24 hours of approved, elective continuing education are renewal requirements. In addition , the law allows a salesperson or broker to renew by passing the real estate exam within six months of renewal.

Answer 41

c. full-time attendance throughout the course. Successful completion of continuing education requires full-time attendance. Students who arrive late, leave during the class, or leave early may not receive certificates of completion . Continuing education courses may not require the passing of an examination or the signing of an attendance sheet.

Answer 42

a. collect a commission on acts performed and which commission was earned prior to the license being placed on inactive status. The inactive licensee is allowed to collect a commission on acts performed prior to his or her license being placed on inactive status. Inactive licensees are precluded from engaging in any acts of real estate while their license is on file with the real estate commission.

Answer 43

a. protect the public. The mission of the Commission is to protect the public through examination, licensing, and regulation of real estate brokers, salespersons, and firms.

Answer 44

d. being a U.S. citizen. | An applicant is not ineligible because of their citizenship, sex, race, religion, marital status, or national origin.

Answer 45

a. hold the hearing and the broker will be bound by the results. In the event a licensee fails to appear in person at the hearing, the Commission may proceed to conduct the hearing and the licensee shall be bound by the results of such hearing to the same extent as if the licensee were present.

Answer 46

d. Three years after renewal Iowa does not require proof of education when you renew your license, but they may do a random audit at any time within the three-year license term and the licensee must prove completion of all education requirements at that time.

Answer 47

a. 8 hours of law update and 4 hours of ethics Mandatory classes include eight hours of law update and four hours of ethics. The additional 24 hours of continuing education may include any commission-approved course. Twelve hours of professional development and ethics is mandatory for first renewal licensees but not for subsequent renewals. Fair housing is elective continuing education and is not mandatory.

Answer 48

c. Retaking and passing the licensing exam within six months of renewal In Iowa, a licensee may retake and pass the appropriate license exam within six months of renewal in lieu of classroom continuing education requirements. Otherwise, the licensee must take 36 hours of continuing education to renew to active status. Twelve of the 36 required continuing education hours are on mandatory subject matter, and the remaining 24 are elective. Therefore, while the business law course may satisfy the elective requirements for renewal, it fails the test for mandatory classes.

Answer 49

d. place the license on inactive status. The commission will place the license on inactive status. Subsequent to this action, the commission could later conduct a hearing, suspend the licensee’s real estate activity, or fine a licensee up to $2,500.

Answer 50

a. is renewed on inactive status. The Iowa Real Estate Commission allows a license to be renewed without the required continuing education, but it can only be renewed to an inactive status.

Answer 51

b. 12 months. A candidate for a license as a real estate salesperson must pass the state exam within 12 months after completi ng the prelicensing education.

Answer 52

a. 72 hours of broker education. An applicant for a broker license must complete 72 hours of broker education within 24 months of taking the exam.

Answer 53

d. Three years after renewal | All education documentation shall be retained for a period of three years after the date of renewal.

Answer 54

d. 24 hours | A maximum of 24 hours of continuing education may be taken by correspondence (online or home study).

Answer 55

d. Deposit cash from a buyer-client into the selling broker’s trust account and converting it into an earnest money check to give to a cooperating listing broker. Depositing cash from a buyer- client into the selling firm’s trust account and then converting it into an earnest money check is required by Iowa code. This leaves a paper trail and protects both parties. A broker cannot legally place a client’s money into his or her personal checking account. The broker can commingle up to $800 for the maintenance of the trust account, but not $1,200. Displaying a For Sale sign without the owner’s consent is a violation of commission rules.

Answer 56

d. maintain trust account records for five years after the closing. State law requires that brokers keep trust account and transaction records for at least five years. There is no requirement that brokers display company name signage or that they employ a single salesperson. There are many one- person broker offices. Fair housing signage is required.

Answer 57

d. deposits a tenant’s rental check in his or her own bank account and then writes a personal check to the landlord. Depositing a tenant’s rental check into a salesperson’s personal bank account is the unlawful commingling of personal and client’s funds. Unless permission is obtained in advance, a salesperson may represent only one broker. Buyers may be represented in today’s marketplace, and most real estate brokers prefer an exclusive right-to-sell listing agreement.

Answer 58

a. may deposit any earnest money into her personal checking account. The transaction must be totally “by owner,” with no commission being paid. The agent cannot function as a licensee in any capacity and cannot use her broker’s phone number. Only when acting in the capacity of an agent during the sale of a personal residence or property are agents required to deposit earnest money into the broker’s trust account.

Answer 59

d. banking days after receiving all signatures. Other people’s money, such as earnest money and security deposits, must be deposited within five banking days after the final signature is obtained. Prior to obtaining the last signature, earnest money checks are normally held in the agent’s transaction file. If the offer is not accepted, the earnest money check is simply returned. It is imperative that the date of acceptance accompany the last signature.

Answer 60

c. deposit the money into an interest-bearing trust account that accrues interest to the state of Iowa. Brokers are required by state law to deposit earnest money into interest-bearing trust accounts that accrue interest to the state of Iowa. A broker, with written authorization from both parties, may open a separate interest bearing trust account and pay the interest to either the buyer or the seller. The broker should never deposit earnest money into his or her business checking account; this type of commingling is illegal. It is also illegal to hold the earnest money deposit until the transaction closes

Answer 61

c. should have deposited the money in an interest-bearing trust account where the interest is transferred quarterly to the state treasurer. In Iowa, real estate trust accounts must be interest bearing, and all interest earned is transferred quarterly to the treasurer of state. The state does allow the existence of a non-interest-bearing account for receipts from property management and/or rental transactions provided the account is separately maintained from the mandated interest-bearing trust account. A broker could never legally cash someone else’s check and place the money into his or her personal or business account. Additionally, it is illegal for a broker to be paid interest on monies held in trust for others.

Answer 62

a. All checks, deposit slips, and bank statements must include the word “trust” as part of the account name. According to state law, no other word is allowed. There is no rule preventing a broker from using the same financial institution for personal banking and business banking. Other than a property management trust account, the state of Iowa requires real estate trust accounts to be interest bearing.

Answer 63

c. The broker’s action was appropriate as long as the individual ledgers properly reflect the broker’s actions. The broker is allowed to transfer funds from the same owner’s individual accounts but is not allowed to cover excess repair costs with any of the general funds belonging to others. The reason for individual ledgers is to reconcile balances between them and the general ledger. In addition, it alerts a broker when funds are insufficient to cover the seller’s expenses.

Answer 64

a. deposit the funds in the trust account. Never commingle funds that belong to others into a business account. It is against state law to hold funds that belong to others; they must be deposited into the broker’s trust account within five banking days of the last signature.

Answer 65

d. Individual ledger The individual ledger identifies every nickel in the account and readily identifies the problem of writing checks on limited funded accounts. The general ledger includes all accounts and allows the broker to reconcile the books by comparing the general ledger balance with the total of the individual ledger accounts.

Answer 66

c. state of Iowa. Unless there is a written agreement to the contrary, the interest earned on the trust account is transferred on a calendar-quarter basis to the state of Iowa. The broker may have the depository remit the interest directly, and the amount remitted will be the amount of interest earned less any service charges for the maintenance of the account.

Answer 67

a. in an FDIC or NCUA financial institution located in Iowa. All trust accounts must be located in Iowa. A Swiss bank account or an offshore account would be an illegal place for a trust account. The account must be identified as a “trust” account, and funds must be deposited within five banking days after acceptance.

Answer 68

b. business operating account. The broker is not allowed to use the trust account as a business operating account or for personal uses. Commissions, salaries, related items, and normal business expenses are not to be disbursed directly from the trust account.

Answer 69

a. A broker withholds a portion of the earnest money after a transaction fails to close to cover the commission that has been earned. Under no circumstances is the broker entitled to withhold any portion of the earnest money when a transaction fails to consummate, even if a commission is earned. The broker must sue the appropriate party for any commission owed.

Answer 70

c. deposit it in the broker’s trust account within five banking days after the final acceptance signature. The law is clear: other people’s money must be deposited into a trust account within five banking days after the offer is accepted.

Answer 71

a. must promptly withdraw the $1,000 and transfer it to the broker’s business account. The broker must promptly withdraw money held in the trust account that becomes due and payable to the broker. This situation does occur, and this procedure is a legal process.

Answer 72

c. Title Guaranty. The state of Iowa created a substitute for title insurance and markets it though the Iowa Finance Authority under the name Title Guaranty Division. Title insurance origination is not authorized in Iowa. However, in order to sell mortgages on the secondary market, most investors require title insurance to protect their investments from a quiet title action.

Answer 73

d. Under the direct supervision or with permission of the listing broker Salespeople are not allowed to handle closings except under the direct supervision or consent of the employing broker.

Answer 74

c. Listing broker The listing broker is accountable for the closing even though another licensee may complete the closing. If an unlicensed escrow agent handles the closing and the escrow agent renders a closing statement, the listing broker must ensure that all funds are accounted for properly.

Answer 75

a. Immediately | In the event that an offer is terminated for any reason, the earnest money must be returned immediately.

Answer 76

c. Up to $1,000 A broker shall not commingle personal funds in a trust account; except, up to $1,000 which may be used by the broker to pay expenses directly related to maintaining the trust account.

Answer 77

c. Until closing | In Iowa, a listing lasts until closing of the transaction, mutual agreement of seller and broker, or expiration.

Answer 78

c. illegal. Commission proposals cannot be included in an offer to purchase. A real estate licensee is not allowed to induce another to seek to alter, modify, or change another brokers listing without that licensee’s prior written consent. Regardless of an agency agreement or the seller’s acceptance, it is unlawful to request a change in commission without the listing agent’s authorization to do so. Without a warning of some kind, it might seem like extortion to an unsuspecting seller’s agent.

Answer 79

a. unlawful because the agent is not allowed to take listings with them. Upon the termination of employment with a broker, agents are not allowed to take written listing agreements secured during previous employment. Said listings remain the property of the previous broker and may only be canceled by the broker and the seller.

Answer 80

c. Placing a For Sale sign in front of a house after receiving written permission in the listing contract A broker must always have permission before erecting a sign. A broker may not encourage or agree to a negative decision on religious grounds. A broker must make full disclosures of all conditions of a promotion, and except for those who hold inactive licenses, Iowa code requires that E&O policies be renewed on an annual basis.

Answer 81

a. must be in writing to be enforceable. The buyer-brokerage contract is an employment contract and must be in writing to be enforceable. Buyer-brokerage contracts are lawful and regulated, just as listing agreements are

Answer 82

c. both parties give prior written consent to such multiple payments. Both parties must give their informed written consent to dual compensation.

Answer 83

b. obtain the consent of the property owner. After obtaining permission from the owner, the salesperson may erect a For Sale sign on the owner’s property. Permission to put up a For Sale sign can be written into any listing contract, but written permission isn’t a prerequisite under Iowa law. The local municipality may remove signs from municipal easements that create visual obstructions, but permission is not required from the municipality for sign placement. The broker gives her sales personnel implied consent to put up For Sale signs, but only after permission is received from the owner to do so.

Answer 84

a. call the owner and explain that two offers will be presented rather than just one. All offers must be presented promptly.

Answer 85

c. No, state law prohibits any lawsuit to collect a commission, unless the injured party was a duly licensed broker at the time of the alleged cause of action. Only a broker can sue and collect commission. A broker may not allow unlicensed persons solicit listings. The agent cannot sue because he did not have an active broker’s license at the time the agreement was reached and because the arrangement is illegal. The statute of frauds requires written contracts for the transfer of real estate but does not deal specifically with employment contracts.

Answer 86

c. selling of chances. Lotteries and schemes involving the selling of chances are illegal in Iowa. Holding open houses, using the internet, and telephone usage are all legal ways to market real estate.

Answer 87

b. Parking a car all day in a person’s yard to attend the state fair Parking a car in someone’s yard is considered a license and, as such, becomes a revocable privilege and does not rise to the level of a right. The definition of real estate includes rights, not privileges. A percentage-lease agreement acknowledges the rights of both landlord and tenant, and an easement gives the right to a utility company to enter the property for maintenance or replacement. A tenant has rights even during a legal action for eviction.

Answer 88

d. cannot disclose to the buyer offers received on the seller’s property while it was listed with that agent. The original listing agent is now free to represent the buyer because the original agent no longer has an agency relationship with the seller. However, confidential information must remain confidential forever. Agents must always disclose information about the physical condition of the property.

Answer 89

d. can sue the seller for a commission. The listing broker earned a commission because the broker did what he was hired to do: locate a ready, willing, and able buyer. The broker could legally sue the seller for payment. The buyer, not the broker, could legally sue the seller for performance. The earnest money must be returned to the buyer and may not be retained by the broker as commission earned.

Answer 90

a. must state the exact fee or percentage the broker will earn. The listing agreement must state the exact fee the broker will earn (either a flat fee or a percentage). Additionally, the listing agreement must be in writing and have a definite expiration date. The listing does not have to be accompanied by a qualified expert’s report of the property condition. The seller must receive a copy of the listing agreement as soon as reasonably practical after the signature of the owner is obtained.

Answer 91

c. illegal in Iowa regardless of agreement. Net listings are illegal in Iowa because of the potential breach of agency to the seller-client. A conflict of interest exists any time an agent stops working in the best interest of his client. In the case of a net listing, an appearance of impropriety always exists because of the uncertainty of the selling price.

Answer 92

c. illegal in Iowa because of the automatic renewal clause. Listings must contain a definite termination date in Iowa. Automatic renewal periods of any duration are illegal in Iowa. Both parties can agree to the contract, but the described contract is void because it lacks legality of object

Answer 93

c. Not including a broker’s protection clause State law does not address the issue of whether or not a broker should include a protection clause. All listings in Iowa must specify a rate of commission and have a definite termination date. According to state law, the seller must be given a copy of the listing as soon as practical.

Answer 94

c. give the seller a legible copy of the written listing agreement. According to Iowa law, a licensee is obligated to give the seller a legible copy of the listing as soon as practical. There is no obligation to hold an open house or place a listing on the internet, although both of these are very good marketing ideas. Any company can extend an invitation to cooperate; however, nothing requires a competitor to accept such an overture.

Answer 95

c. A multiple listing Multiple listing is not a type of listing. An exclusive-right-to sell, exclusive-right-to-buy, and open listing must be in writing, indicating termination date and commission rate. A multiple listing clause must be in writing in an exclusive listing.

Answer 96

d. define the protection period in the original listing agreement. The listing agreement and Iowa license law require a definite protection period spelled out in the original listing agreement. In order to enforce a protective clause, a list of the protected names and addresses must be given to the seller prior to the expiration or withdrawal of the listing. There is no 72-hour grace period to do so.

Answer 97

d. listing broker. The protective clause in a listing agreement protects the listing broker from the consumers who “wait out” the listing period to avoid paying a commission. The protective clause must be included in the original listing, so that the seller is aware of owing a commission if he sells to a buyer introduced during the listing.

Answer 98

c. reasonable intervals. On demand by either party, the broker is required to furnish a detailed current statement at reasonable intervals until the transaction is closed.

Answer 99

b. two accepted offers by the same buyer on the same property to deceive a lender as to the true sales price. Dual contracts are illegal in Iowa. Dual contracts refer to two or more written or oral contracts for purposes of sale concerning the same parcel of real estate. One of the contracts is not made known to the prospective lender, so that the purchaser can obtain a larger loan than the true sale price would allow or so that the purchaser can qualify for a loan that she otherwise could not obtain.

Answer 100

c. eligible to do so with the written consent of all parties to the listing agreement. A listing agreement may not be assigned, sold, or otherwise transferred to another broker without the express written consent of all parties to the original agreement.

Answer 101

c. buyer’s agent may not include any commission proposals in an offer to purchase. Once the parties to the listing agreement agree on a flat fee, no other licensee, other than the listing agent, is allowed to attempt to alter, modify, or change the flat-fee arrangement. The commission amount in the “listing agreement” may be modified with the written permission of all parties to the agreement. A commission split between brokers should be a separate agreement between brokers and not include in an offer to purchase.

Answer 102

a. Immediately upon closing A licensee shall make every reasonable effort to remove signs from a property after the transaction is closed unless permission of the new owner is obtained.

Answer 103

a. refuse to share his commission with other companies. A listing broker is not required to share commission with other companies, but cannot refuse to let other companies show their listings. A broker must promptly present all written offers.

Answer 104

c. before the listing expires. To enforce a protective clause, the broker must deliver the names and contact information of buyers to the seller before the listing expires via personal delivery or registered/certified mail (return receipt requested).

Answer 105

c. is illegal in Iowa. | Net listings are illegal in Iowa.

Answer 106

a. try to enter into a listing agreement that starts after the expiration of the seller’s current listing. If the owner initiates the discussion, the licensee may negotiate and enter into a listing or brokerage agreement that will take effect after the expiration of the current listing.

Answer 107

c. must allow the buyer’s agent to be present when the offer is presented to the seller. A listing agent must allow a buyer’s agent to be present when an offer is presented unless the seller provides written instruction otherwise.

Answer 108

b. a signed brokerage agreement. In order to collect compensation, a broker must have a signed brokerage with a buyer, seller, landlord, or tenant. An agency agreement does not obligate a party to pay compensation.

Answer 109

b. returned to the buyer after the seller and buyer sign an earnest money release form. Earnest money must be kept in the trust account until all parties agree in writing to its disbursement.

Answer 110

b. The broker’s disclosure violated the statutory fiduciary duties owed to the tenant. The licensee’s disclosure violated the confidentiality owed to a tenant. Delegated authority and consent to act determines representation, not who pays the commission. Payment of compensation under license law is not construed to determine or establish an agency relationship. In addition, under Iowa code it is unlawful to extend an offer of subagency through the MLS.

Answer 111

d. Yes, if both the buyer and seller give their written consent to dual agency. If both parties agree in writing, then the agent can represent both sides of the transaction as a consensual dual agent. Consensual dual agency is allowed in Iowa. Note that even though appointed agency agreements have been signed by both parties, in order to be legal, both must also sign a consensual dual agency agreement.

Answer 112

c. buyer as an agent. A salesperson who takes a buyer to see another company’s listing is typically working as a buyer’s agent. The possibility exists that the buyer is a nonclient, but in this scenario, there is no information to suggest this arrangement.

Answer 113

c. subagency. Cooperation, compensation, and referrals are readily extended by brokers in most MLS communities. Subagency cannot be offered through an MLS service.

Answer 114

c. neither suspend nor revoke the broker’s license. Any unlawful act by a broker’s agent is not cause for the revocation of the broker’s license, unless the commission finds that the broker had guilty knowledge of the unlawful act or violation or was not properly supervising the agents.

Answer 115

b. permitted as long as the broker discloses the accepted fee to the seller in writing. In providing brokerage services, a licensee is not allowed to accept referral fees unless the licensee provides written notice to their client of the transaction that compensation will be accepted by the licensee from such person.

Answer 116

c. salesperson does not ask any questions of a confidential nature. No discussion of agency is required until questions of a confidential nature are entertained. Neither buyer agency nor consensual dual agency is necessary because a buyer does not have to be represented.

Answer 117

c. inform the buyers that the real estate company represents the seller’s interest. Informing the buyers about the company’s relationship with the seller must be made so that the buyers understand that they are not being represented. Buyers do not have to be represented, nor do they have to agree to dual agency relationships.

Answer 118

c. at the time of specific assistance. Agency must be discussed with the seller prior to the listing presentation . Regardless of the time spent with a seller during a listing presentation, an agent must discuss agency during the time of specific assistance. Specific assistance means eliciting or accepting from the seller the motivation for wanting to sell his or her equity position in the house. Ministerial acts do not require a discussion of agency.

Answer 119

c. prior to entering into a listing agreement. The brokerage’s written, appointed agency relationship with a seller must be determined and all necessary agreements executed prior to taking a listing agreement. A written form is also required prior to an offer being made or accepted by any party to the transaction.

Answer 120

d. has not acted in the best interest of the public, and receiving the fee constitutes a violation of Iowa code. Regardless of whether the broker is aware of the practice or not, a salesperson in Iowa cannot legally receive referral fees from a lender. This practice is a violation of a salesperson’s fiduciary duty to a buyer-client. This practice also drives up the cost of loans, and the higher costs are often passed on to the consumer. The maximum real estate fine is $2,500.

Answer 121

d. an appointed agent. An appointed agent is appointed by a designated broker to act solely for a client to the exclusion of the other affiliated licensees of that brokerage agency. A consensual dual agent by definition would represent two people, while under subagency a subagent could be an agent to any number of sellers.

Answer 122

a. Providing brokerage services honestly and in good faith Honesty and working in good faith, as well as reasonable skill and care, are required of licensees in all transactions. The licensee is not obligated to disclose all facts, but disclosing all material facts except those that are already known or could have been discovered through a reasonable inspection is also required. Providing investment opportunities is not a duty owed to all parties in a real estate transaction.

Answer 123

b. provide comparable market data about the seller’s property to the buyer. Under consensual dual agency, the salesperson may provide comparable market data to the buyer. However, a consensual dual agent may not disclose the buyer’s financial qualifications to the seller or disclose to the buyer the seller’s motivation for selling. A consensual dual agent may not disclose to the seller that a buyer would pay more than the offering price as well.

Answer 124

c. If the appointed listing salesperson and the appointed selling salesperson are two different people, no additional disclosure is required. As long as the appointed buyer’s agent isn’t the listing agent, consensual dual agency isn’t an issue. Under designated (appointed) brokerage, the broker appoints agents within the sales office to represent sellers or buyers singularly to the exclusion of every other salesperson in the firm. State law permits consensual dual agency and working with a buyer as a nonclient; therefore, referring a buyer to another brokerage firm isn’t necessary or practical.

Answer 125

b. Establishing a listing price range with a seller Establishing a listing price range requires communication beyond casual conversations and should be considered specific assistance. Responding to telephone inquiries concerning brokerage prices, locations, and prices of properties, as well as responding to customer questions at an open house, are all ministerial acts.

Answer 126

a. Responding to general questions about the price and location of specific property Generally, reciting published information, such as price and location of a specific property, is considered ministerial and may be performed without any discussion of agency. However, agency disclosure is required before working directly with buyers, helping them determine their buying power, and negotiating and assisting in the closing process. These are examples of providing specific assistance and require a discussion of agency before the licensee solicits or obtains confidential information.

Answer 127

d. No because acceptance of a fee from a lender would be in violation of Iowa code. It is not in the best interest of the public and is a violation of Iowa code to accept a referral fee from a lender. In addition, salespeople can only receive compensation from their employing brokers.

Answer 128

a. not yet properly disclosed his agency relationship with the buyer. Agency representation is not about the property, but rather the duties and obligations to a client and a customer. The buyer does not know what her relationship is with the brokerage firm until the salesperson explains it to her. The salesperson has a legal obligation to discuss agency with the buyer prior to providing specific assistance or writing an offer. Although the creation of an undisclosed dual agency relationship is a possibility, nothing in the question suggests that “delegated authority or consent to act” has taken place between the salesperson and the buyer.

Answer 129

c. specific assistance. Specific assistance is defined as eliciting or accepting confidential information about a party’s real estate needs, motivation, or financial qualifications.

Answer 130

c. Describing the benefits you could provide as an agent. Specific assistance is any communication beyond casual conservation, such as price range, motives, and financial information. Company agency policy disclosure is required before providing specific assistance.

Answer 131

d. prequalify the buyer for a mortgage. A salesperson is prohibited from asking questions of a confidential nature without first entering into a buyer agency agreement. Prequalifying the buyer for a mortgage requires asking questions of a confidential nature, and the agent cannot work to obtain this information without first disclosing the company’s agency policy. A salesperson working with a buyer can provide ministerial acts, such as providing information about other properties, mortgage rates, and explanations of the various agency relationships.

Answer 132

b. Inform the owner verbally that the salesperson is a licensee before providing specific assistance and in writing before making an offer. The salesperson must inform the owner verbally that the salesperson is a licensee before providing specific assistance and in writing before making an offer. The salesperson does not have to resign, use a third party, or require the seller to enter into a dual agency agreement. Dual agency must be consensual; it may not be required.

Answer 133

d. before any offers to purchase or lease are prepared or presented. Commission rule requires agency relationships be discussed at the time of specific assistance (asking questions of a confidential nature). However, written agency agreements are not required until the time prior to an offer being made or accepted by any party to the transaction and acknowledged by separate signatures of all the parties.

Answer 134

a. protect a person’s equity in her home. | The purpose of homestead is to protect a person’s equity (up to $4,850) in her home.

Answer 135

c. should disclose the agent’s ownership and financial interest in the cleaning company. This practice is alright as long as the agent has disclosed their relationship to the company to which they are referring their client.

Answer 136

a. have procedures in place that prohibit agents from sharing a client’s confidential information with other agents in their office. A broker who has an appointed agency policy must implement procedures intended to prevent mishandling of confidential information within their office.

Answer 137

b. private burial sites. In addition to those items included in the question, transferors are required to include any known private burial sites (one or more graves containing human remains) on the property. Radon and asbestos are environmental issues, but neither requires disclosure on Iowa’s Groundwater Hazard Statement. It’s a poor practice, but agents are allowed to sign the form for the transferor; however, when they do so, the agents represent the information to be correct.

Answer 138

d. any known or discovered environmental hazards. Environmental disclosures are not part of Iowa’s Department of Revenue and Finance Declaration of Value Report. However, in Iowa there is a state-mandated Groundwater Hazard Statement where such reporting is required. The report requires either the buyer or the seller of residential property to declare the total purchase price, the financial details of individual contract sales, and from a checklist, all of the sales conditions that apply to the real estate transfer.

Answer 139

b. must inform potential buyers of any known structural problems. The owner has to comply with the Seller’s Property Condition Disclosure Act and obviously would be required to inform a buyer about known structural problems. Property owners who rent, sell, or buy property for themselves are exempt from licensing requirements. There is no requirement.

Answer 140

b. Seller’s agent | Although not a good practice, the agent may sign for the transferor (seller).

Answer 141

b. Seller’s agent | Although not a good practice, the agent may sign for the transferor (seller).

Answer 142

a. When the seller is selling the property as for sale by owner The disclosure is required by for sale by owners. The Residential Property Seiter Disclosure Statement is required in the transfer ofone- to four-unit dwellings. Exceptions to the disclosure include foreclosure, transfer by quitclaim, and between joint tenants or tenants in common.

Answer 143

a. Prior to the seller accepting an offer The seller’s Property Disclosures Statement must be delivered to the buyer prior to the seller accepting the buyer’s offer. Commission rules require that the listing agent deliver the disclosure and attempt to obtain the buyer’s signature prior to the seller accepting the offer.

Answer 144

d. The seller The seller is required to complete and sign the document. The form should not be used as a warranty of any kind, nor is it intended as a substitute for an inspection or buyer’s home warranty.

Answer 145

c. the seller’s property disclosure statement is required by Iowa code. In Iowa, the property disclosure statement must be made in the sale of all one-to-four family dwelling units, whether or not a real estate agent is used. The agent should encourage the seller to be honest and disclose known problems.

Answer 146

d. can still sue the broker for nondisclosure of a material fact. The buyer can sue the broker for nondisclosure of material facts as required by license law. The broker is required to disclose any fact that would materially affect the buyer’s decision to make an offer. The fact that the buyer did not ask is not relevant. The buyer could also sue the seller for fraud. By law, the buyer has to be treated honestly and in good faith, believing that all known material adverse facts have been disclosed regardless of an inspection.

Answer 147

d. An owner selling a three-unit residential property The Seller’s Property Disclosure Act applies to the transfer of all one-to-four family dwelling units. It does not apply to the administration of a decedent’s estate, a transfer between family members, or a conveyance from one former spouse to another under a divorce settlement agreement.

Answer 148

d. seller accepting a written offer to buy. License law requires a licensee representing a seller to deliver an executed property disclosure statement to a potential buyer prior to the seller’s accepting a written offer to buy. The seller’s agent will not have any knowledge about a buyer’s loan application, and there is no reference in this question to a dual agency relationship. The law does not require that a buyer touring the seller’s property be given the disclosure statement.

Answer 149

c. Knowledge of a suicide in the garage of a house Disclosure of a suicide (a stigma, a psychological fact) in the garage of a house is an ethical issue and may be considered a material adverse fact in Iowa. Material adverse facts relate to conditions or occurrences that are generally recognized as affecting the value of the property significantly and adversely. The case of the property’s proximity to a hog lot is an example of this. It also includes significant health risks to occupants of the property, including a higher-than-allowed EPA level of radon exposure.

Answer 150

d. Sale of a home using a quit claim deed Exempt properties include foreclosures, bankruptcies, eminent domain, transfer to a co-owner, spouse, or heir, or transfer by quit claim deed.

Answer 151

a. a state of Iowa Radon Fact Sheet. | Seller must provide a Radon Fact Sheet to the buyers before they accept an offer.

Answer 152

a. 300 days. Under Iowa law, a complaint must be filed within 300 days of the alleged discriminatory incident. A housing complaint must be filed with HUD within one year, and a district court complaint must be filed within two years of the alleged discriminatory incident.

Answer 153

d. pontoon boat. | Iowa’s fair housing laws cover real property only. A pontoon boat is personal property.

Answer 154

a. age. In addition to the seven protected categories under Federal Fair Housing Laws, Iowa protects against discrimination based on gender identity, sexual orientation, and creed.

Answer 155

a. compute commission checks. Unlicensed personal assistants may compute commission checks. They are not allowed to make cold calls to solicit listings or independently host open houses. They may accompany an agent to an open house and greet prospects, hand out promotional material, and accompany prospects through the home for security purposes only. Unlicensed support personnel may receive, record, and even deposit money, but they cannot collect it.

Answer 156

c. have not allowed the assistant to negotiate the transaction and cannot legally pay a commission for such negotiations. Under these circumstances, both the broker and the assistant have violated the rules of conduct regarding unlicensed assistants. Unlicensed assistants are not permitted to discuss legal matters with the negotiating parties.

Answer 157

c. Explaining simple contract documents to prospective buyers. Only a licensed person may explain simple contract documents to prospective buyers. An unlicensed person may answer the phone and forward calls from the public to a licensee and is allowed to assemble legal documents for closing. Under supervision, the unlicensed assistant may prepare and distribute flyers as well as promotional materials.

Answer 158

b. exempt from real estate licensing requirements. The office manager is not performing real estate activities and, therefore, is exempt from licensing requirements. On the other hand , a branch office sales manager is required to have a broker’s license and is called the broker-in charge.

Answer 159

c. a violation of Iowa license law. An unlicensed personal assistant may not show property independently. They may only accompany a licensee to an open house or a showing

Answer 160

b. make cold calls to try to get listings for the company. | Unlicensed personal assistants are prohibited from making cold calls for the purpose of securing prospects for listings.

Answer 161

a. all individual states in which the salesperson holds a real estate license. State commission rules require that a salesperson’s personal website include the salesperson’s name, registered firm name, city and state in which the salesperson’s license is located, and all states in which the salesperson holds a real estate license. There is no requirement in Iowa to include a salesperson’s real estate license number or phone number.

Answer 162

c. pocket card ID number. All of the responses except the pocket card ID number are required on either the first or the last page of the email used for advertising or marketing.

Answer 163

c. Accepting the bonus money by a salesperson is a violation of Iowa law. The salesperson acted improperly by accepting the bonus money. A salesperson is not allowed to accept a fee from any person for the performance of any real estate acts except from his broker. The broker may accept the bonus and transfer all or part of it to the agent. The fact that the agent was licensed or appointed is not relevant. In addition, telling the broker does not excuse the violation.

Answer 164

b. It is illegal for the broker to pay the pilot for the lead. A broker may pay a referral fee only to someone who holds a real estate broker’s license. The exception is referral payments to a charity. The broker would be able to pay a fee to a charity of the pilot’s choice.

Answer 165

b. broker-in-charge. The broker-in-charge is the broker or broker associate designated as the person responsible for supervision of a main office or branch office.

Answer 166

d. maintain individual fax machines. There is no requirement to maintain separate fax machines. The commission rules state that each broker must maintain individual records and individual trust accounts, and each must operate under an individual business name.

Answer 167

a. broker-associate-in-charge of the branch office. Every branch office is required to display two branch office licenses: one in the name of the real estate firm and the other in the name of the broker-associate-in-charge of the branch office. Every branch office must be directly supervised by a broker or broker associate assigned to that location as the broker-in-charge. No broker or broker associate is allowed to be the broker-in-charge of more than one location.

Answer 168

a. broker. | A salesperson’s license must be delivered to and kept in the custody of the broker, who must display the license

Answer 169

c. the employing broker. | Salespeople may collect compensation only from their employing brokers.

Answer 170

c. salespeople and broker associates who are employed or otherwise associated with the broker as a representative of the broker. An employing broker is responsible for providing supervision of any salesperson or broker associate employed by or otherwise associated with the broker as a representative of the broker. The existence of an independent contractor or employee relationship is not relevant to this rule. Whenever a licensee affiliated with a broker engages support personnel to assist the affiliated licensee, both the broker and the affiliated licensee are responsible for supervision. However, the affiliated licensee has the primary responsibility for supervision, not the employing broker, if the broker has a written policy allow the use of support personnel describing the duties they may or may not perform.

Answer 171

d. implement a written policy authorizing the practice and identifying the duties the assistants can perform. Any brokerage firm that allows licensees to hire personal assistants must implement a written policy authorizing the practice and identifying the duties the assistants can perform. While the broker is responsible for the supervision of all personnel, an affiliated licensee employing a personal assistant is primarily responsible for the supervision of that personal assistant. Workers’ compensation insurance is not a requirement , and Iowa code prohibits individuals actively licensed with one firm as a personal assistant from performing the same role at another firm.

Answer 172

a. files an irrevocable consent agreement that suits may be brought against them in Iowa with the Iowa Real Estate Commission. The out-of-state broker must file an irrevocable consent agreement to suit with the Iowa Real Estate Commission. He does not have to employ even one Iowa licensee . Additionally, the out-of-state broker must maintain an office in Illinois and maintain an active Illinois broker’s license.

Answer 173

c. sends the license to the salesperson’s employing broker. Agents are sent pocket cards by the commission, but their licenses are delivered to employing brokers and kept in their custody and control.

Answer 174

a. forward the license to the real estate commission and note on it the cause for termination. When a salesperson terminates employment or is discharged by a broker, the broker has 72 hours to deliver the license or send it by certified mail to the commission. On the reverse side of the license, the broker is required to identify the date and reason for termination. A license is always in the custody and control of the employing broker and is never returned to the salesperson. In addition, the broker is required to send a letter to the last known mailing address of the salesperson notifying him or her that the license has been returned to the commission. A copy of that same letter must be forwarded with the license to the commission.

Answer 175

c. No, the manager of a branch office must be a broker associate. Approval for the branch office will not be given. Each office must be under the direction of a licensed real estate broker, not a salesperson. While brokers can have branch offices, state law does not allow the broker-in charge to be in charge at two locations at the same time. The law does not require a branch office sales manager to be an officer of the real estate organization.

Answer 176

d. Her existing license must be sent to the commission within 72 hours, and then a new request form must be signed by the new broker and sent to the commission with the proper fee. The original broker must return the old license to the commission within 72 hours. The new broker, along with proper fee and application form, requests a new license for the same remaining period as the original license.

Answer 177

a. illegal because the broker is not allowed to advertise without including the regular business name of the brokerage. A broker is not allowed to advertise in a manner indicating that a private party is offering the property. A post office box number or phone number alone can be misleading, and an advertisement containing only this information is called a blind ad. Every broker must use the regular business name and unmistakably indicate that the party is a real estate broker and not a private party.

Answer 178

b. The name of the brokerage, address of the home office, and the states in which the brokerage holds a license Each screen must include the name of the brokerage, the home office address, and the states where the brokerage holds licenses. There is no requirement for naming all of the active licensees working under the broker’s supervision.

Answer 179

a. Licensee’s name, the broker’s name, the individual’s office location, and the states in which the licensee holds a real estate license. Each page or screen of the individual’s website must include the salesperson’s name, the brokerage name, and the location of the salesperson’s office. In addition, each screen must include a list of states where the salesperson is licensed.

Answer 180

d. tying. This arrangement is called tying, and it is deemed “unethical conduct” and a “practice harmful or detrimental to the public.”

Answer 181

a. selling price. The transfer tax is based on the selling price. It is appraised for lending purposes and assessed for property tax purposes, and the seller’s equity is not relevant.

Answer 182

d. exempt from the licensing requirements because he lives in site. The fact that the on- site manager is an employee specifically exempts him from the licensing requirement. The manager must comply with fair housing laws.

Answer 183

c. Receipts from property management and rental accounts may be deposited in a trust account separate from the mandated interest-bearing one. Property management trust accounts may be separate from the mandated interest-bearing account and require individual ledgers for each tenant, identifying the tenant’s rental unit, security deposit, and showing all receipts and disbursements together with check number and date. Property management trust accounts may be opened pursuant to a written property management agreement and may be non-interest-bearing.

Answer 184

b. at least once a month. The fees shall be identified by property name and transferred into the broker’s business account, not directly to the broker.

Answer 185

a. within five banking days of receipt. The broker shall deposit all funds received on behalf of the owner by no later than five banking days after receipt of the funds into a trust account.

Answer 186

a. the names of any agents assigned to manage the property. A management agreement must identify the property, define the authority given to the broker, the amount of fee, accounting of security deposits, and terms for termination of the agreement.

Answer 187

c. 30 days after termination. | All unobligated funds must be returned to the owner within 30 days of termination of the agreement.

Answer 188

* At least one of the owners in a partnership * All active in the business must have a license * In a corporation one of the licensed owners must be on the board of directors.

Answer 189

* Owner or spouse selling property * Full time employee * Acting under a Power of Attorney * Isolated rental transaction * Time share USE * Resident manager of a rental complex * Employee of Federal Government * Employee of a utility company

Answer 190

* Previously rejected within 12 months so must wait 12 months before reapplying * License revoked within 2 years so must wait 2 years before reapplying * Must be at least 18 years of age * In the last 5 years is convicted of serious crimes, such as forgery, embezzlement, theft, extortion * May be denied if applicant: * is behind in child support. * is behind in college loan payments. * has had a professional license of any kind revoked. * makes a false statement on license application. * is guilty of moral turpitude.

Answer 191

1. 60 hours of Pre-license course 2. 12 hours of Developing Professionalism and Ethical Practices 3. 12 hours of Buying Practices 4. 12 hours of Listing Practices 5. Complete and pass FBI background check 6. Pass State Licensing Exam

Answer 192

1. 24 months as an active salesperson licensee 2. Complete 72 hours of Broker Pre-license education 3. Complete and pass FBI background check

Answer 193

* Latest day is the last working day of the sixth calendar month following passage of the examination. * September 30, 2000

Answer 194

* Aimed at agents that have an out of state license. * Not required to have an office within the state of Iowa * Must maintain an active place of business in the state that he/she is licensed.

Answer 195

* Only one in Iowa | * In addition, an agent could work for another Broker(s) in another state(s).

Answer 196

* Make cold calls * Host open houses independently * Prepare promotion materials without review * Show property independently * Answer any questions on title, financing, etc. except was provided in writing by the licensee. * Answer any questions regarding a listing except provided in writing by the licensee. * Discuss or explaining a contract. * Negotiate any commission * Discuss with the owner terms of the real property offered * Collect or holding deposit moneys * Provide owners with any advice. * Hold one’s self out as being licensed

Answer 197

A listing contract is a bi-lateral agreement. Both parties, seller, and broker, to each separate listing, would have to agree. The Broker on his or her own could not sell his ‘inventory’ to another broker. Remember that listing agreements are between the seller and the broker NOT the salesperson.

Answer 198

Option 1 - 36 hours necessary for renewal Mandatory 8 hours Law Update 4 hours Ethics Elective 24 hours The 36 hours must be taken within 3 years prior to the renewal date. Up to 24 hours can be taken by distance learning. At least 12 hours must be taken in a classroom setting. Option 2 - Re-take and pass the real estate test within 6 months prior to the renewal date. Each agent is responsible for maintaining their own records. However could be charged with failure of proper oversight if an agent renews without proof of required continuing education credits.

Answer 199

* Renew to inactive status | * Can re-activate when 36 hours of CE are completed. Hours must be completed within the last 36 months.

Answer 200

* The mission of the Commission is to Protect the Public. | * The commission has no authority to settle monetary disputes between firms

Answer 201

* Seven members total * Five licensed members * Two unlicensed members * At least 1 is a salesperson * All actively licensed for at least 5 years, last 2 years in Iowa * Appointed by the Governor and confirmed by the Senate * Only one member per county * No government, state, or federal elected officials

Answer 202

• The Commission has no authority to settle commission splits between brokers.

Answer 203

* Definite starting and ending date * Legal description * Owner signatures * Name of firm * Commission rate or flat rate * Duties of owner * Duties of agent * Must be in writing

Answer 204

• An agent can not take their listings with them. • A listing is an agreement between the firm, represented by the designated Broker and the Owner. • The Firm and the Owner may elect to release the existing contract, allowing the owner to list with an other firm. However, this is not mandatory.

Answer 205

• Brokers must cooperate with other brokers except if: • such cooperation would harm or disadvantage the seller. • the seller instructs in writing that he/she does NOT wish to extend cooperation to a broker(s). An offer of cooperation does not guarantee an offer of compensation. An agreement on compensation must be worked out separately from an agreement of cooperation.

Answer 206

* A brokerage agreement has a definite starting and ending dates. There is no standard term. * An agreement can be terminated by: * an agreement between the client and broker. * performance. * the property being sold. * the closing date ends the agreement. * breach. * either party failing to perform as promised. * expiration. * the end date of the agreement has arrived.

Answer 207

* Account for all moneys and property | * Keep confidential all information received.

Answer 208

* Listing Broker may share commission with a Cooperating Broker * A Buyer’s Broker may share commission with another Broker * Both Seller and Broker can pay the same agent if the parties have consented in writing.

Answer 209

* No - compensation does not equal Agency | * And - agency does not equal Compensation

Answer 210

• Wait until the listing term is up and schedule an appointment.

Answer 211

• Unless there is a prohibition to placing a “For Sale” sign, the sign can be placed at the beginning of the agreed upon listing term.

Answer 212

• The protective clause is found in the Listing Agreement. • The Listing Agreement is between the Owner and the Brokerage. • The protective clause protects the Listing Firms compensation. Requirements to enforce a protective clause • There is a protective clause provision in the Listing Agreement • OR regular mail and personal delivery with receipt • The notifications will list the person or persons who the protection is sought.

Answer 213

* A net listing specifies a net sale price to be received by the owner. * The excess funds from the sales price is to be received by the Broker as commission. * Compensation to the listing firm must be stated as a flat fee or a percentage of the sales price. * Net listings is not a legal practice.

Answer 214

* You must have a signed property management agreement. * The agreement should include: * proper identification of the property. * that agency is created. * compensation. * terms and conditions of management.

Answer 215

• Tying are illegal arranges requiring a party to pay or use the brokers services in order to receive the service the party wants. Examples include: • Listing Broker requires a contractor to purchase a lot to give the Broker exclusive rights to sale or list the home to be constructed on the lot. • An arrangement where the Broker agrees to sell lots for a developer if the developer requires homebuilders wishing to build homes on the lot to list the newly constructed homes to be listed with the Broker. • An arrangement in connection in the sale of the lot, a requirement to pay the listing broker a commission based on the value of the house to be constructed. • An arrangement for the purchase of a property requiring that the existing property owned by the buyer be listed with the Broker. • An arrangement where a Broker, in connection with the sale of a lot to a consumer, requires the consumer to use a specified homebuilder.

Answer 216

* Must be the Owner * Written notice making it clear to an interested party the licensee’s true position * Examples would be Agent is Owner, or Buyer is an active real estate agent. * Inactive agents are required to give notice also.

Answer 217

• All ads must make it clear that the advertisement is affirmatively and unmistakably by a Real Estate Brokerage. • No real estate advertisement shall show: • only a post office box number. • only a telephone number. • only a street address. • The Designated Broker is responsible for all advertising. • The Broker has 10 days to correct all advertising.

Answer 218

Each website page must include the: • firm name. • city and state of the office location. • states in which the firm is licensed.

Answer 219

* Same information as #31 | * Information only must be on either the first or last page of the communication

Answer 220

* The licensee’s name * Firm name * City and state licensee’s office is located * The states licensee holds license * Information must be included on each page of the website.

Answer 221

* Same as #32 | * Information must be on 1st or last page of communication.

Answer 222

• Must disclose in writing a clear picture of the relationship. An inactive agent must disclose also.

Answer 223

• Licensee must disclose in writing that (s)he is a licensed real estate agent. Inactive agents must disclose also.

Answer 224

• The practice of having two contracts. One stating a lower amount to actually guide the closing and another second agreement that is given to the lender is illegal. • The practice is called duel contracts and is illegal.

Answer 225

* After a contract has been established * Either party may demand at reasonable intervals * Broker must furnish a detailed statement showing the status of the transaction

Answer 226

* All offers must be presented as promptly as possible | * All offers must be presented until closing

Answer 227

* The Seller must complete a property disclosure when required * Must include 20 items required by the Iowa Real Estate Commission * Required for residences, four units or less.

Answer 228

* Five years………. (if you aren’t sure….. 5 years is usually the answer)! * There are exceptions for foreclosures, bankruptcies, guardianships, quitclaim deeds.

Answer 229

• A Broker does not have to have a trust account. • If a Broker is planning to receive funds he/she must have a trust account. • Maintains as many trust accounts as needed Account requirements • Federally insured institution • Must have the name ‘trust’ in the account name Amount of personal funds allowed • Up to $1000

Answer 230

* Must deposit within 5 banking days * Must be in an interest bearing account * Interest on account goes to the state * Interest could be forwarded to another entity if both Principals agree.

Answer 231

* Listing Broker is responsible for closings | * Five years

Answer 232

* Selling agent would deposit cash in his/her company’s trust account * A check is then drafted from this account to the listing firm * The check from the selling agent’s firm is then placed in the listing firm’s trust account.

Answer 233

• Yes • Any earnest deposited other than money must be communicated to and approved by the Seller before accepting offer.

Answer 234

* No * Earnest money is held in a trust account dedicated for the clients funds. * Commission is completely separate from the clients funds held in the trust account.

Answer 235

* Immediately | * Must be obtained to apply for a license

Answer 236

* Responding to phone inquiries on brokerage availability and pricing of brokerage services * Responding to inquiries from consumer property price and location * Meeting at an open house and answering questions on property * Responding to questions asked by a consumer who had walked into the firm’s office * Show a For Sale By Owner’s property

Answer 237

* Price Range * Specific financial qualifications * Motives * Objectives of seller or buyer

Answer 238

1. An agency disclosure can be made orally with a buyer when an incident of ‘specific assistance’ occurs. 2. Agency disclosure in writing before an offer is written.

Answer 239

Conditions or occurrence that is generally recognized by a competent licensee that: • significantly affects the value of the property. • significantly reduces the structural integrity of the real estate. • presents a significant health risk.

Answer 240

• The earnest money is returned to buyer

Answer 241

• Yes, but only as a ministerial act. Signs an agency agreement stating that (s)he is a transactional agent or a ‘non-agent’

Answer 242

* No. * Buyer’s agent should recommend an inspection * No requirement for agent to do their own inspection if Buyer does not

Answer 243

Seller • Before completing the listing agreement Buyer • Orally, at the first instance of Specific Assistance • In Writing, before making an offer

Answer 244

Seller • Before completing the listing agreement Buyer • Orally, at the first instance of Specific Assistance • In Writing, before making an offer

Answer 245

• Disclosed Dual Agency agreed to by all parties

Answer 246

• The Designated (Employee, Managing) Broker determines the agent that will be working with the client. • The agent is the designated agent or the appointed agent • This agent has a fiduciary relationship with the Client and must perform all fiduciary obligations - COLDAC. • All other agents in the firm are in a customer relationship • Duties to a customer are honesty and good faith • All files and information concerning the client must be kept confidential. Information is not available to other agents in the firm. This calls for a secure filing system, and no discussions between agents.

Answer 247

• The designated broker

Answer 248

* Written complaint from the general public or another licensee * Results from an audit of the trust account * Results from random verification of E&O insurance * Results from random verification of Continued Education Units * Notice of revocation of an agent’s real estate license in another state

Answer 249

* 20 days notice | * The hearing will be held

Answer 250

* Suspend license for a specified period * Revoke license * Non-renewal of license * Prohibit the engaging in a specific procedures or methods * Probation * Issue citations, warnings, reprimands * Impose penalties not to exceed $2,500 * Require education

Answer 251

• A suspended or revoked license is returned to the real estate commission. • If a broker’s license is suspended or revoked, the licenses of all salespeople under that broker are put on in-active status.

Answer 252

• This process is illegal.

Answer 253

• Having delinquent child support or college loans may be reasons to deny or revoke a license.

Answer 254

All of the above

Answer 255

Last business day of October 2015

Answer 256

All of the above

Answer 257

Lots and Blocks

Answer 258

Conformity

Answer 259

Life Estate

Answer 260

The tenant paints the interior of the unit without the permission of the landlord/property manager.

Answer 261

Statutory lien

Answer 262

It cannot be refunded without the agreement of the parties

Answer 263

All of the above

Answer 264

Both you and the Broker for company A

Answer 265

Tell the owner she cannot accept the listing with those conditions.

Answer 266

A Land Contract

Answer 267

Leasehold interest

Answer 268

The consent of the legally competent parties

Answer 269

A tax sale certificate

Answer 270

Street Address

Answer 271

Setting the appointment

Answer 272

Address of the property

Answer 273

None of the above

Answer 274

Sexual Orientation

Answer 275

Mortgage Lien

Answer 276

Metes and Bounds

Answer 277

Discussing the motives of the seller.

Answer 278

Quit Claim Deed

Answer 279

The price being asked for a house.

Answer 280

Easement in Gross

Answer 281

The State of Iowa

Answer 282

All of the above

Answer 283

All of the above