Need of a License: A real estate salesperson must be licensed by the state of Iowa to represent clients in the sale or purchase of real estate that is located in Iowa.
Who Grants a License: Licenses are granted by the Iowa Professional Licensing Bureau (“IPLB”).
Qualifications to receive a License: A candidate must complete 60 clock hours of study at an IPLB-approved real estate school (search schools here), pass a school-administered final exam, and (within 12 months of education) pass a state exam. All candidates must submit a full set of fingerprints, prove legal presence and pass a criminal history and background check. All candidates must be at least 18 years of age. All applicants must show proof of Errors and Omissions insurance, and broker sponsorship. (The Iowa Real Estate Commission does not issue inactive original licenses.) For more information about qualifications, see the Salesperson Licensing Requirements by Exam page of the Iowa Professional Licensing website.
Applying for the Exams: The testing company for the Iowa real estate exam is PSI. Candidates should apply to take the state exam through the PSI website scheduling page. For more information, see the State of Iowa Real Estate Commission Licensing Bulletin.
Test Content: The Iowa state real estate licensing exam is comprised of two separate tests: the national test and the state-specific test. Each test includes (in addition to the scored questions) five to ten questions that are considered "experimental" questions and are not scored. The national test consists of 80 questions; and the state-specific test consists of 40 questions. The test taker must correctly answer 56 out of 80 questions to pass the national portion, and 28 out of 40 questions to pass the state-specific portion. Both portions are comprised of multiple choice questions with four answer choices provided for each question. Test takers are allotted 120 minutes to complete the national portion, and 60 minutes to complete the state portion. The exam is presented in a computer-based format, but accommodations for paper-based tests and/or oral testing can be provided with special arrangements.
The national portion of the exam tests the candidate's knowledge of general real estate concepts, including the following subject areas:
Property Ownership
Land Use Controls and Regulations
Valuation and Market Analysis
Financing
Laws of Agency
Mandated Disclosures
Contracts
Transfer of Title
Practice of Real Estate
Real Estate Calculations
Specialty Areas
The state-specific portion of the exam tests the candidate's knowledge of the state-specific concepts, including the following subject areas:
Licensing Requirements
License Maintenance
Disciplinary Actions – Suspension, Revocation and Voluntary Compliance
Real Estate Education
Trust Accounts
Contracts
Agency
Prop Disclosure Requirements
Iowa Civil Rights Act of 1965
Unlicensed Assistants
Broker Responsibilities
Property Management
How to Apply for the License: The license application is issued by the testing company upon passing both portions of the licensing exam. The list of required documents is subject to change, but is on the license application. In the interest of candidate preparation, the following documents will likely be on the list: (1) completed application and application fee; (2) original Iowa state real estate licensing exam score report(s); (3) certificate issued by an IPLB-approved school for completion of the 60-hour salesperson pre-licensure curriculum. All of the required documents must be submitted within six months of passing the state exam to:
Iowa Real Estate Commission
200 E Grand, Ste 350
Des Moines, IA 50309
For further information, contact the Iowa Real Estate Commission by telephone at (515) 725-9028.
Fees: The IPLB charges a license application fee, which is subject to change, but is $125 at the time of this writing.
Who administers the test: The IPLB and PSI.
License Renewal Requirements: An Iowa real estate licensee must take 36 credit hours of continuing education (either online or in the classroom) from IPLB-approved provider every three years.
Applicable Regulations: Real estate licensees in Iowa are regulated under the Iowa Statutes, Chapter 543B, and Iowa Administrative Code, Chapter 4.
