Iowa Real Estate Salesperson Exam — All Questions

When an Iowa salesperson receives an earnest-money deposit from a buyer, the funds must be:

• a.Delivered promptly to the broker to be held in the broker's trust account✓
• b.Deposited in the salesperson's personal account until closing
• c.Kept as cash by the salesperson until the seller accepts
• d.Sent directly to the Iowa Real Estate Commission

Earnest money and other client funds must be handled through the employing broker's trust (escrow) account. A salesperson who receives such funds must deliver them promptly to the broker, who must keep trust money separate from business and personal accounts. Mishandling trust funds is a serious Iowa license-law violation.

In a typical Iowa residential sale, which document must the seller provide to disclose environmental information about the property at the time of transfer?

• a.A federal flood certificate
• b.A homeowners association resale packet
• c.A Groundwater Hazard Statement✓
• d.A mechanic's lien waiver

Iowa law requires a Groundwater Hazard Statement to be submitted when many real estate transfers are recorded, disclosing wells, solid waste, hazardous conditions, underground storage tanks, and private sewage information on the property. This state-specific disclosure is separate from the general residential property condition disclosure and helps ensure the transfer can be recorded properly.