LEGISLATURE AND THE RULES BY THE REAL ESTATE

Iowa Licensing Overview Flashcards How are the Code of Iowa and Administrative Rules changed?A) The Code and the rules can be changed by either the Legislature or the Real Estate Commission.B) The Code and the rules can be changed only by the Real Estate Commission.C) The Code can be changed by the Legislature and the rules by the Real Estate Commission.D) The rules can be changed by either the Legislature or the Real Estate Commission, but the Code can be changed only by the Legislature.The answer is THE CODE CAN BE CHANGED BY THE

LEGISLATURE AND THE RULES BY THE REAL ESTATE

COMMISSION. The Code of Iowa can only be changed by a vote of the Legislature, signed by the governor. On the other hand, from time to time, the Commission may change the rules. The Commission is a policy-making body with authority to promulgate rules for the regulation of the real estate industry consistent with all applicable statutes.If an agent changing real estate firms requests that their license be returned by mail immediately to the IREC, the releasing broker must make every reasonable effort to ensure that the Commission receives the license withinA) 24 hours of the termination date.B) no time limit.C) 1 week of the termination date.D) 48 hours of the termination date.The answer is 48 HOURS OF THE TERMINATION DATE.When the licensee is discharged, the broker must deliver or mail the discharged person's license to the Commission within 72 hours of the discharge date. However, if an agent requests that the license be returned by mail immediately to the IREC, the releasing broker must make every reasonable effort to ensure that the Commission receives the license within 48 hours of the termination date How many years does a commissioner serve during a term on the Iowa Real Estate Commission (IREC)?A) Three yearsB) Six yearsC) One yearD) Two years The answer is THREE. Commissioners are appointed by the governor for three years and may serve no more than three consecutive terms.Bob, an active salesperson who desires to renew his license, is required to submit with his renewal application all of the following EXCEPTA) an agreement to initiate a criminal background check.B) a certifying statement that all required continuing education has been obtained.C) the appropriate renewal fee.D) proof of errors and omissions insurance coverage.The answer is AN AGREEMENT TO INITIATE A CRIMINAL BACKGROUND CHECK. Proof of errors and omissions insurance coverage, certification that all required continuing education has been obtained, and payment of the renewal fee are all required. A criminal check is not required for license renewal.What is the ratio of the seven-member Real Estate Commission?A) Five licensed and two unlicensedB) Three licensed and four unlicensedC) Six licensed and one unlicensedD) Four licensed and three unlicensed The answer is FIVE LICENSED AND TWO UNLICENSED.The Real Estate Commission is made up of a seven-member body, with five licensed and two unlicensed members.Under which of the following circumstances is it legal for licensees to buy and/or sell property for their own benefit?A) When the licensee is acting on behalf of the licensee's immediate family as either the listing agent or a buyers' agent without a written disclosureB) If acting in a dual capacity of both agent and an undisclosed principalC) If disclosure is made after the licensee's solicitation of confidential informationD) If proper written disclosures are given to all parties of any ownership or interest The answer is IF PROPER WRITTEN DISCLOSURES

ARE GIVEN TO ALL PARTIES OF ANY OWNERSHIP OR

INTEREST. With proper disclosure, it is legal for licensees to buy and/or sell property for their own benefit. However, licensees are not allowed to act in a dual capacity of both an agent and an undisclosed principal in any transaction.Licensees should make the disclosure at the time of or prior to their solicitation of confidential information, and a written disclosure is required when licensees are either the listing agent or a buyers' agent acting on behalf of their

immediate family.

How many members comprise the Iowa Real Estate Commission (IREC)?A) SevenB) FiveC) ThreeD)Nine The answer is SEVEN. The Real Estate Commission consists of a seven-member body, with five licensed and two unlicensed members.Under which of the following circumstances are licensees allowed by Commission rule to sell their own property "by owner"?A) Earnest money given directly to the owner/licenseeB) Licensee performs only minor functions as a licensee during the transactionC) Participation by the licensee's brokerD) Brokerage fees to be paid to the licensee's broker The answer is EARNEST MONEY GIVEN DIRECTLY TO THE OWNER/LICENSEE. Licensees who choose to sell their real property as a "by owner" may pay any involved earnest money directly to the owner/licensee. However, in this case, it would be advisable for the seller's or the buyer's attorney to hold the earnest money until the transaction closes.Commissioners are appointed by the governor for three years and allowed to serve no more than how many consecutive terms?A) ThreeB) No limitC) TwoD) One The answer is THREE. Commissioners are appointed by the governor for three years and may serve no more than three consecutive terms.How many hours of continuing education is a renewing agent allowed to take by correspondence/home study?A)

12B) 36C) 18D) 24

The answer is 24. The rule requires licensees to return to the classroom for an exchange of new ideas and knowledge.The mission of the Iowa Real Estate Commission (IREC) is toA) protect the public.B) ensure that there are enough real estate licensees in Iowa to serve consumers.C) protect the real estate industry in Iowa.D) raise funds for the state through licensing fees.The answer is PROTECT THE PUBLIC. According to state law, the mission of the IREC is to protect the public through the examination, licensing, and regulation of real estate brokers, salespersons, and firms.If a real estate broker agrees to provide brokerage services at an auction but fails to be present during the auction, what civil penalty might the broker face for not showing up?A) $2,500B) $1,000C) $3,500D) $500 The answer is $2,500. If a real estate broker agrees to provide brokerage services at an auction but fails to be present during the auction, a civil penalty of $2,500 can be charged against the absent broker.Licensure agreements that exist between Iowa and other states that have licensing requirements similar to Iowa's and where similar recognitions and courtesies are extended to each other are called reciprocity agreements.To become eligible for such a license, an out-of-state licensee is NOT required toA) sign an affidavit indicating familiarity with Iowa's license law.B) sign an irrevocable consent that lawsuits may be brought against the licensee in the proper court of any Iowa county.C) post a surety bond.D) notify the Commission if the nonresident's license is either revoked or suspended in the licensee's home state.This answer is POST A SURETY BOND. An out-of-state licensee does not have to post a surety bond but must sign both an affidavit indicating familiarity with Iowa's license law and an irrevocable consent that lawsuits may be brought against the licensee in the proper court of any Iowa county. In addition, nonresident licensees must notify the Commission if their license is revoked or suspended in their home state.Which statement is TRUE of files, records, and other required documents stored in electronic format?A) Required records may be retained as electronic records only if the recording storage medium can be easily accessed.B) The scanning or electronic generation of a record need not be monitored to ensure that the copy is clear, legible, and true before the original is shredded.C) After an original record is transferred to an electronic

storage medium, the record must also be retained in its original medium.D) The records do not have to transferred to a legible printed form as long as they can be viewed on a computer terminal upon request.The answer is REQUIRED RECORDS MAY BE

RETAINED AS ELECTRONIC RECORDS ONLY IF THE

RECORDING STORAGE MEDIUM CAN BE EASILY

ACCESSED. Required records may be retained as an electronic record only if the record storage medium can be easily accessed and the records can be readily retrieved and transferred to a legible printed form upon request.