In Iowa, how long does a listing agreement last?
a. 3 days after closing
b. 30 days after an offer is accepted
c. Until closing
d. Until mutual agreement between the buyer and seller
c. The answer is until closing. In Iowa, a listing lasts until closing of the transaction, mutual agreement of seller and broker, or expiration.
A buyer's agent showed an outside firm ls listing that offered to pay the selling firm a 3% commission. The buyer's agent then presented an offer on the same property, demanding that the seller pay a 3.5% commission to the selling firm. In this situation,
c. The answer is illegal; commission proposals cannot be include 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. Re
Upon termination of employment with his broker, a salesperson asked a seller to cancel her listing and relist it with the salesperson's new broker. This activity is
a. unlawful because the agent is not allowed to take listings with them.
b. lawful because
a. The answer is 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
Which of the following is considered a legal action and is NOT a violation of law?
a. Advertising that those individuals attending a promotional presentation will receive a prize without mentioning the requirement that they have to take a half-day trip to
c. The answer is 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 g
Buyer-brokerage agreements
a. must be inwriting to be enforceable.
b. must be on commission-specific forms.
c. are not regulated under Iowa license laws.
d. are illegal.
a. The answer is 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.
In a dual agency situation, a broker may collect a commission from both the seller and the buyer if
a. the broker does not disclose material adverse facts.
b. both parties are represented by attorneys.
c. both parties give prior written consent to such mu
c. The answer is both parties give prior written consent to such multiple payments. Both
parties must give their informed written consent to dual compensation.
A salesperson who wishes to place a For Sale sign on a listed property must first
a. obtain an exclusive-right-to-market contract.
b. obtain the consent of the property owner.
c. get permission from the municipality that
owns the parking area between the
b. The answer is 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 wri
A consensual dual agent writes a $200,000 offer on a personally listed home at 1:00 pm. The dual agent then calls the seller to set up an appointment to present the offer at 4:00pm. Around 3:00 pm, an outside buyer's broker drops off an offer on the same
a. The answer is call the owner and explain that two offers will be presented rather than just one.
All offers must be presented promptly.
Three weeks before a person began his real estate pre-licensing education, he offered to help a neighbor sell her house. The neighbor agreed to pay the person a 5% commission. The neighbor accepted an offer while the person was taking the pre-licensing cl
c. The answer is 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 p
Marketing real estate can be done in a variety of ways. However, Iowa prohibits
a. the use of the internet.
b. telephone usage.
c. the selling of chances.
d. holding open houses.
c. The answer is the 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.
In Iowa, which of the following situations does NOT fall under the definition of real estate?
a. A tenant who signed a percentage lease agreement.
b. Parking a car all day in a person ls yard to attend the state fair.
c. Remaining in an apartment during a
b. The answer is 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 estat
The listing agreement with a seller expired and the seller listed with a different brokerage firm. The original listing agent now has a buyer interested in the sellers property. The original listing agent
a. is a dual agent.
b. cannot disclose to the buye
d. The answer is 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
A listing agent procured a ready, willing, and able buyer for his seller-client. The seller accepted the buyer's written offer, and then experienced a change of heart and withdrew her acceptance . In this situation, the listing agent's broker
a. is out of
d. The answer is 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 b
The commission's rules require that listing agreements
a. must state the exact fee or percentage the broker will earn.
b. must be accompanied by a qualified expert's report of the property's condition.
c. Be delivered to a buyer before an offer is written
a. The answer is 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 defini
Listings based on a "net price" to the seller are
a. legal in Iowa as long as the seller contractually agrees.
b. more profitable because no minimum is set on the amount of collectible commission.
c. illegal in Iowa regardless of agreement.
d. permissible
c. The answer is 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
A seller signs a listing agreement with a broker. The agreement contains the following clause: "If the property has not been sold after six months from the date of this signing, this agreement will automatically renew itself for an additional six months.
c. The answer is 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 c
In a listing agreement, which of the following is legal?
a. Not specifying a rate of commission
b. Not giving a copy of the listing to the owner as soon as practical
c. Not including a broker's protection clause
d. Not using a specific termination date
c. The answer is 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.
Upon obtaining a listing, a broker or licensed salesperson is obligated to
a. cooperate with every real estate office wishing to participate in the marketing of the listed property.
b. hold the open house.
c. give the seller a legible copy of the written
c. The answer is 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
Which of the following agreements is not a type of listing?
a. An exclusive-right-to-sell listing
b. An exclusive-right-to-buy agreement
c. A multiple listing
d. An open listing
c. The answer is 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
In order to enforce a protective clause, the broker must
a. provide the commission with a list of the protected names and addressee
b. give protection lists to the seller within 72 hours of the expiration or withdrawal of the listing agreement.
c. review
d. The answer is 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
In a listing agreement, the protective clause protects the
a. buyer.
b. closing agent.
c. seller.
d. listing broker.
d. The answer is 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
If requested, and after the acceptance of an offer, a broker is required to furnish a detailed progress report to the buyer and/or the seller at
a. 15-day intervals.
b. 45-day intervals.
c. reasonable intervals.
d. 60-day intervals.
c. The answer is 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.
Dual contracts for the sale of real property refer to
a. one broker who obtains a listing agreement and then presents a purchase agreement of a buyer he or she has been representing to the seller.
b. two accepted offers by the same buyer on the same prope
b. The answer is 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 t
A broker going out of business wants to sell his listings to another company and is
a. eligible to sell them only to his agents.
b. not eligible to do so because the listings belong to the listing agent.
c. eligible to do so with the written consent of al
c. The answer is 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 origin
A flat-fee broker agreed to list a home for $3,000. The flat-fee broker does not offer compensation to outside brokers. An outside broker is working with a buyer-client who wants to make an offer on the flat-fee broker's listing. The buyer's broker has si
c. The answer is 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 cha
When must a broker remove a "For Sale" sign from a property after a transaction has closed?
a. Immediately upon closing
b. Within 10 calendar days of closing
c. Within 24 hours of closing
d. Upon written request of the new owner
a. The answer is 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 .
A listing broker may
a. refuse to share his commission with other companies.
b. refuse to let other companies show his listings.
c. solicit other companies' listed properties.
d. refuse to present offers from other companies.
a. The answer is 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 offer
In order to enforce a protective clause, the list of buyers to be protected must be given to the seller
a. within 24 hours of expiration.
b. within five calendar days of expiration.
c. before the listing expires.
d. at the time of listing.
c. The answer is 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 re
A broker takes a listing in which the broker gets to keep, as commission, any money in excess of a net amount the seller wants at closing. This type of listing
a. is alright as long as it does not exceed $5,000.
b. can be done verbally.
c. is illegal in I
c. The answer is illegal in Iowa. Net listings are illegal in Iowa.
An owner who has her home listed with one broker contacts an agent of another company to discuss listing her property when her current listing expires. The agent should
a. try to enter into a listing agreement that starts after the expiration of the selle
a. The answer is try to enter into a listing agreement that starts after the expiration of the sellers current listing. If the owner initiates the discussion, the licensee may negotiate and enter into a listing or brokerage agreement that will take effect
A buyer's agent writes an offer on another company's listing. The listing company
a. can refuse to have the buyer's agent present when the offer is presented to the seller.
b. can refuse to present the offer if the buyer does not want to give any earnest
c. The answer is 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.
In order for a broker to receive compensation in a real estate transaction, the broker must have
a. an office in a commercially-zoned area.
b. a signed brokerage agreement.
c. an agency agreement.
d. at least one salesperson.
b. The answer is 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.