Iowa Real Estate Commission Regulations - Prof. Sweeney, Exams of Real Estate Management

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HOSMERIT IOWA REAL ESTATE LICENSE EXAM QUESTIONS WITH 100% CORRECT ANSWERS 2024 The Iowa Real Estate Commission is a regulatory body made up of how many people? - ✔✔ 7 The Iowa Real Estate Commission mission is to protect who? - ✔✔ The public How many of the The Iowa Real Estate Commission members must be licensed in Iowa? - ✔✔ 5 How many years does each of the five members must have as a minimum of real estate experience and the last two of which must have been in iowa? - ✔✔ 5 The other 2 members out of the total 7, must not be real estate licensees but still must be Iowa what? - ✔✔ residents How long is iowa commission members regular terms? - ✔✔ 3 How many total years can each iowa real estate commission member serve? - ✔✔ 9 How much is the Iowa real estate state exam fee for a salesperson license? - ✔✔$125 How much is the Iowa real estate state exam fee for a broker's license? - ✔✔ $170 Iowa requirements for salesperson and broker applicants must be how old? - ✔✔18 In iowa, do you have to be a US citizen or resident to get your license? - ✔✔ No The applicant must be a person whose application has not been rejected for licensure in Iowa OR any other state within 12 months prior to the date of application AND whose real estate license has not been revoked in Iowa or any other state within 2 years prior to date of application. TRUE OR FALSE - ✔✔ TRUE An applicant may be denied a license if he or she has: Been convicted of any crime involving moral turpitude, in a court of competent jurisdiction. TRUE OR FALSE - ✔✔ TRUE An applicant may be denied a license if he or she has: Had his or her real estate license revoked. A salesperson must be assigned to a licensed what? (and cannot conduct business independently.) - ✔✔broker If the salesperson is terminated, or terminates the employment or association, the license must be returned to the Commission. As soon as the license is transferred, however, the salesperson is permitted to immediately begin working for the new broker. TRUE OR FALSE? - ✔✔TRUE First-time salespeople who are renewing their licenses to maintain active status must complete 36 Commission-approved classroom hours by December 31 of the third year of licensure. TRUE OR FALSE? - ✔✔TRUE For all subsequent license renewals, both brokers and salespersons must complete 56 hours of courses approved by the Commission. TRUE OR FALSE If false, how many hours? - ✔✔36 Any salesperson that does not reinstate an expired license by December 31 of the third year following expiration will be treated as if he or she was never licensed in Iowa. TRUE OR FALSE - ✔✔TRUE Who responsibility is it to renew the license? The commission or the licensee? - ✔✔licensee LEARN: A real estate salesperson who fails to renew or fails to file a complete renewal application form by midnight January 30 of the first year following expiration may reinstate the license within three years of expiration by submitting a complete and sufficient application accompanied by the regular renewal fee and an additional reinstatement fee of $25 for each partial or full month following expiration. TYPE OK TO CONTINUE - ✔✔OK LEARN: Each salesperson who wishes to renew his or her license in "active status" must successfully complete 36 hours of continuing education. The licensee must complete this continuing education during the 3 calendar years of his license term. Continuing education credits CANNOT be carried over to another license term. OK TO CONTINUE - ✔✔OK The state agency that handles fair housing issues in Iowa is the Iowa Rights Commission. Any complaint filed with this Commission must be filed within 300 days of the alleged discriminatory incident. - ✔✔Civil The Iowa Civil Rights Act of 1965 is nearly identical to the Federal Fair Housing Act, except that it has ten protected classes. These are race, color, creed, religion, sex, national origin, disability, familial status, sexual orientation and gender . The Act covers discrimination in employment, housing, public accommodations, credit and education. - ✔✔identity The 36 hour Continuing Education hours consist of: (list the names) - ✔✔Law update, ethics, approved electives STUDY UNIT 10 REVIEW #202-204 (Continuing Education) OK TO CONTINUE - ✔✔OK If a licensee changes his or her principal business location, he or she must give notice to the Commission in writing within five working days. The Commission will then issue a new license with the change of address. This license is valid for the remainder of the unexpired period of the license period. There is a fee to cover the cost of this license. TRUE OR FALSE? - ✔✔TRUE Within how many working days shall you inform the commission of a change of residence address? - ✔✔5 LEARN: If a licensee terminates or changes his or her employment, that salesperson's broker must immediately deliver the salesperson's license to the Iowa Real Estate Commission. On the reverse side of the license, the employing broker must write the date and cause of termination of employment. OK TO CONTINUE - ✔✔OK LEARN: Some of the duties allowed for support personnel include, but are not limited to, the following: Answering the telephone, providing information about a listing to other licensees and forwarding calls from the public to a licensee. To host open houses attended by licensed salespersons and brokers only. Scheduling appointments with the seller or the seller's agent in order for a licensee to show a listed property. TRUE OR FALSE - ✔✔TRUE personal assistants may not: Perform any activities that require a license. Represent themselves as licensees or as affiliated with a particular firm. Print their name on the real estate firm's company business cards or perform similar acts that would deceive the public. - ✔✔Unlicensed Which of the following agreements is not required to be in writing? Exclusive right to sell Multiple listing dual agency exclusive agency - ✔✔Multiple listing Susan is renewing her license for the third time. She must complete 12 hours of core requirements which consists of - ✔✔8 Hours of Law and 4 hours of Ethics Scarcity Transferability Situs - ✔✔Utility A personal property item that has been converted to real property by attachment to real estate is called a . Typical examples are: chandeliers, toilets, water pumps, septic tanks, and window shutters. - ✔✔fixture Providing information that does not create a need to discuss agency is which of the following? - ✔✔Ministerial acts What five economic characteristics affect the value of land in the marketplace? Demand It is the responsibility of each real estate to maintain a common trust account in a federally insured depository institution for the deposit of all down payments, earnest money deposits or other trust funds received by the broker or the broker's salespersons as directed by the principals to a transaction constituting dealing in real estate. - ✔✔broker What is the term of an inactive real estate license? - ✔✔3 years Support personnel who are unlicensed may host open houses collect rent compute commission checks answer questions about structural problems - ✔✔compute commission checks All fees collected for license reinstatements go to the - ✔✔Education fund Licensing regulations exempt certain people from the real estate licensing requirement. Of the following, which one is not exempt? a.Anyone with power of attorney, acting on behalf of the owner b.An auctioneer c.An employee of a licensee who provides information to other licensees concerning sales, exchanges, purchases, rentals lease or advertising of real estate that has been provided to the employee by the employer licensee either verbally or in writing d.A person who represents another person's authority in a transaction in the purchase of property • ✔✔A person who represents another person's authority in a transaction in the purchase of property evidence of compliance with this section within 20 calendar days of the Commission's request. (E & O Insurance). - ✔✔errors LEARN: Failure of a license applicant or licensee to carry the errors and omissions insurance, or to timely submit proof of coverage upon Commission request, is considered grounds for the denial of an application for licensure, the denial of an application to renew a license, or the suspension or revocation of a license. OK TO CONTINUE - ✔✔OK While a licensee MAY obtain independent E & O coverage, a licensee may SELF- INSURE. - ✔✔NOT Review 215/216 - ✔✔OK A broker's compensation is NOT set forth in an agency disclosure. Compensation is addressed in a AGREEMENT! - ✔✔BROKERAGE a contract between a buyer or seller and an agent of a real estate company / a type of contract wherein one party agrees to act as a sales agent of another, who is called the principal. - ✔✔brokerage agreement any communication beyond casual conversation that would divulge confidential information, and this includes information that is either elicited by the licensee or accepted by the licensee. This confidential information includes information about the person's motivation, finances, or other needs. - ✔✔Specific assistance LEARN: A consumer or customer is NOT the same as a client in that they are not represented by the licensee. OK TO CONTINUE - ✔✔OK LEARN: A client, on the other hand, is a person with whom the licensee works in an agency relationship. OK TO CONTINUE - ✔✔OK a person who wants to buy real estate but is not represented by an agent. He does not establish any kind of agency relationship with the real estate agent. - ✔✔customer as a contractual relationship with an agent, and an agent represents a in a legal transaction. Also, a needs to sign an agreement with the agent allowing him to act as his representative. - ✔✔client TO CUSTOMERS AND CLIENTS: The licensee is also obligated to disclose any adverse material facts that the licensee knows about, except those facts that have already been set forth. OK TO CONTINUE - ✔✔OK In a agency, the agent only represents one party in any single transaction. The agent owes only that one party any fiduciary duties. - ✔✔single is a situation in which the licensee represents more than one party to a transaction. In the state of Iowa, most offices have a policy that permits dual agency with informed, written consent. - ✔✔dual agency Iowa law mandates that the possibility of agency must be discussed and agreed on before the seller signs a listing agreement or before the licensee provides specific assistance to the buyer. If the consumer agrees to the possibility of agency and creates an agency agreement with the agent, then a second disclosure IS REQUIRED UNDER LAW at the time the agent becomes a dual agent. - ✔✔dual agency is utilized in a situation in which there could be a potential dual agency within the firm, and the broker wishes to avoid the potential conflict of interests inherent to dual agency. - ✔✔Appointed An agent is a person who is authorized by the broker to act at the agent of a specific principal in a transaction (either the seller or buyer). Once this authorization has been given, that agent is the ONLY licensee within that company who has agency, or fiduciary, responsibilities toward that principal. - ✔✔appointed REVIEW 222. Brokerage agreement TYPES. Must review OK TO CONTINUE - ✔✔OK (FORMS) Upon written request of a buyer or seller, a licensee may select, prepare and complete form documents for the use in residential real estate transactions of units or less. This would be limited to: Purchase Agreements Ground Water Hazard Forms Declaration of Value Forms The preparation of documents beyond those authorized may constitute the unauthorized practice of law. - ✔✔four must not handle closings, except under the direct supervision or with the consent of the employing broker. - ✔✔Salespersons When an offer to purchase is withdrawn or the acceptance is revoked without liability, any earnest money deposit shall be promptly to the buyer without delay. - ✔✔returned Every must retain all business books and records for at least 5 years. - ✔✔broker ( Property Seller Disclosure Statement): The intent of this disclosure is to forewarn prospective buyers of the condition of the property prior to that prospective buyer writing an offer. The disclosure statement should include information about the following: -The property's plumbing, electrical, and heating systems -Any significant structural defects -The presence of pests -Zoning classification -Whether the property is in a "real estate improvement district" - ✔✔Residential Hazard Statement: is required in the transfer of ANY real property in Iowa. This statement requires the transferor (or his agent) to indicate as "unknown" or "known and located" information about each of the following items: Wells - whether active or not Solid-waste disposal system Storage of hazardous wastes Underground storage tanks Private burials sites containing human remains Non-compliance with this law will result in the transfer not being recorded in the courthouse records. - ✔✔Groundwater The Iowa Real Estate Commission has the authority to administer the Code and related Rules, for the protection and well-being of those persons who may rely upon licensed individuals for the performance of real estate services within or for clients in Iowa. The IREC has the authority to review and investigate alleged acts or omissions of licensees, determine whether disciplinary proceedings are warranted, initiate and prosecute disciplinary proceedings, establish standards of professional conduct, and impose discipline. The IREC may investigate the actions of any licensee for its own reason, or upon the receipt of a verified written complaint. - ✔✔iowa REVIEW 236 - ✔✔ (Disciplinary Actions) The Commission has authority to impose, alone or in combination, the following disciplinary sanctions. (This list is not all-inclusive.) -Revoke a . -Suspend a license for a period of time or indefinitely. -Prohibit renewal of a license. -Prohibit permanently, until further order of the Commission or for a specified period of time, the engagement in specified procedures, methods or acts. -Order probation etc. - ✔✔license