Free Iowa Real Estate Salesperson Practice Exam 2025

It is incorrect to claim that listing agreements need no signatures or commission terms—Iowa law requires both for the agreement to be valid.

A broker may be disciplined for failing to properly supervise licensees, especially if those licensees commit violations or unlicensed acts.

A net listing allows the broker to keep any amount above a seller’s target price—this practice is illegal in Iowa due to conflict of interest.

Beginning July 1, 2025, 'gender identity' will no longer be a protected class under the Iowa Civil Rights Act as amended by SF418.

Iowa allows appointed agency, where the broker assigns separate licensees to represent each party in a transaction. Disclosure must be made to all parties.

Commingling occurs when a licensee deposits client funds into personal or business accounts, which is a serious violation of trust laws.

Brokers in Iowa may only receive compensation when there is a written agreement signed by the client. Oral agreements are not enforceable.

The 2025 Iowa Title Standards require clear historical documentation of ownership transfers to strengthen legal certainty in transactions.

Iowa law requires that suspected unlicensed activity be reported in writing to the Real Estate Commission for investigation.

Confidential information—like seller motivation, bottom-line price, or timing—must remain private unless the seller provides written consent.

A licensed salesperson in Iowa may legally list or sell property anywhere in the state, not just within their local area. Licensure is state-wide.

Starting July 1, 2025, only registered, licensed home inspectors will be authorized to perform independent inspections under SF460.

Unlicensed assistants are forbidden from soliciting clients, negotiating terms, or making promotional calls. They may perform administrative support only.

Iowa’s HF2394 mandates that wholesalers must be licensed or work through a licensed broker to legally engage in real estate wholesale transactions.

Federal fair housing laws do not require disclosure of a previous tenant’s HIV/AIDS status. This is classified as a disability and protected under privacy laws.

The Governor of Iowa appoints members to the Iowa Real Estate Commission. These individuals regulate licensing, enforcement, and policy implementation.

After a license is revoked in Iowa, the licensee must wait five years before applying for a new license, unless otherwise specified by the Commission.

Agency disclosure must be provided at or before signing a listing agreement to ensure the client understands the representation relationship.

Performing real estate services without a license may result in penalties up to $25,000 or 25% of the transaction amount, whichever is greater.

Errors and omissions insurance is mandatory in Iowa to protect licensees from liability due to mistakes or negligence during real estate services.

Licensees must respond to official communication within 24 hours, unless an exception is made by the Commission. This ensures prompt accountability.

Iowa law prohibits net listings because they incentivize agents to prioritize their compensation over the seller’s best interests.

Brokers in Iowa must deposit earnest money within three banking days of receiving it. Timely deposits maintain client trust and legal compliance.

Earnest money is typically held in trust by the listing broker for the benefit of the seller until closing or other disposition. It must not be used until authorized.

Under Iowa law, acting for a client without a written brokerage agreement can result in administrative fines. Agreements must be signed before any representation begins.

Only licensed brokers in Iowa may independently receive fees for real estate transactions. Salespersons must operate under the supervision of a broker.

Iowa law requires the brokerage name to be visible in all online ads. The licensee’s number is not required, though some firms may include it as a best practice.

If a licensee commits misrepresentation, penalties can include license revocation, monetary fines, and mandatory education. All may be applied based on severity.

Most trust accounts in Iowa must be non-interest-bearing, unless the interest is directed to a designated legal aid fund. This avoids conflicts of interest and misallocation.

Unlicensed assistants in Iowa may not independently host open houses or engage in any activity involving direct client interaction or property promotion. These are considered licensed functions.