IRES - Iowa Real Estate Salesperson

Question 1: Under the integrated disclosure rules, a lender must deliver a Loan Estimate soon after application and must ensure the borrower receives the Closing Disclosure a set number of business days before the closing itself. Which timing BEST states both required TRID deadlines?

Seven days after; seven before closing

One day after; one before closing

Ten days after; three before closing

Three days after; three before closing

Question 2: A borrower chooses a mortgage whose rate periodically resets to a published economic indicator plus a fixed percentage the lender adds as its cost of doing business. Which component, added to the index, BEST identifies that fixed percentage in the reset?

The margin

The index

The rate cap

The adjustment period

Question 3: A landowner holds a first lien from a seller who financed the purchase, and a construction lender will fund improvements only if its new loan takes first position. Which written instrument BEST accomplishes moving the seller's existing lien below the construction loan?

Partial release agreement

Novation agreement

Assignment of mortgage

Subordination agreement

Question 4: A homeowner refinances the mortgage on a principal residence and, under Regulation Z, may cancel the transaction within three business days after signing the papers. To which kind of consumer credit transaction does this three-day right of rescission actually apply?

Purchase-money first mortgages

Commercial property loans

Refinances and home equity loans

Agricultural land loans

Question 5: A brokerage's advertisement states a specific down payment amount and monthly payment figure for a financed home, so Regulation Z requires additional disclosures such as the annual percentage rate and total payments. Which category of advertised specifics prompts that requirement?

General terms

Finance charges

Trigger leads

Triggering terms

Question 6: A real estate broker is offered a cash payment from a title company simply for steering buyers to that company, with no service actually performed in return. Which federal law's prohibition on kickbacks and unearned referral fees does this violate?

RESPA

Truth in Lending Act

Equal Credit Opportunity Act

Fair Credit Reporting Act

Question 7: A first-time buyer wants to purchase a run-down Cedar Rapids farmhouse and finance the repairs within a single loan, combining the purchase price and renovation costs so both are covered by one mortgage. Which type of financing is designed for this?

Bridge loan

Reverse mortgage

Rehabilitation loan

Blanket loan

Question 8: A move-up buyer in Des Moines has not yet sold the current home but needs cash for a down payment on the next one, so a lender offers short-term financing to cover the gap until the old house sells. Which loan is this?

Construction loan

Reverse mortgage

Wraparound mortgage

Bridge loan

Question 9: A builder financing a new house draws funds in stages as work is completed and inspected, paying interest only on money actually disbursed, and expects to replace this short-term financing with permanent financing at completion. Which loan type is this?

Construction loan

Bridge loan

Package loan

Open-end loan

Question 10: A homeowner who has paid down the first mortgage wants to borrow against accumulated equity through a revolving credit line, drawing funds as needed, while the original purchase loan stays in place ahead of this new debt. Which financing is this?

Reverse mortgage

Wraparound mortgage

Home equity line of credit

Blanket loan

Question 11: A seller of an acreage near Sioux City finances the buyer directly, keeping legal title while the buyer takes possession and makes installment payments, and delivering a deed only after the entire balance is finally paid. Which financing arrangement does this describe?

Wraparound mortgage

Purchase-money mortgage

Lease with option to buy

Land contract

Question 12: A buyer purchasing a farmhouse in a small Iowa town with fewer than ten thousand residents seeks a government-backed loan, administered by an agency of the Department of Agriculture, aimed at helping moderate-income families buy homes in rural areas. Which program fits?

FHA-insured loan

USDA rural housing loan

VA-guaranteed loan

Conventional conforming loan

Question 13: Two Cedar Rapids tenants each sign a lease tied to a future purchase. One is bound to buy at the term's end; the other merely holds the choice to buy. Which statement BEST captures the key difference between these two arrangements?

Both compel the tenant to buy

Only lease-option fixes a price

Lease-purchase obligates; lease-option does not

Neither applies rent to price

Question 14: A commercial tenant in West Des Moines transfers only part of the remaining lease term to a new occupant, staying responsible to the landlord for the rent and any damage. Which arrangement describes transferring less than the entire leasehold interest?

A sublease

An assignment

A novation

An assignment of rents

Question 15: During negotiations on a Cedar Rapids rental property, a buyer counters the seller's counteroffer, then changes his mind and withdraws that counter before the seller signs it. May the buyer pull back a counteroffer that has not yet been accepted?

No, counteroffers are irrevocable

Yes, before it is accepted

No, the seller must consent

Only after the seller counters again

Question 16: A West Des Moines seller receives three competing offers on the same condo in one afternoon. Wanting the strongest terms, the seller signs a counteroffer to only one buyer while setting the others aside. Regarding the other two original offers, what has the seller effectively done?

Automatically rejected both offers

Accepted all three offers

Formed contracts with all buyers

Neither accepted nor rejected them

Question 17: A purchase contract specifies that if the buyer defaults, the seller may keep the earnest money deposit as the seller's sole remedy. When the buyer walks away without good reason, what does this clause allow the seller to do?

Keep the deposit as liquidated damages

Keep it and also sue further

Demand specific performance from buyer

Recover triple the deposit amount

Question 18: An investor in Council Bluffs leases a vacant parcel for ninety-nine years and agrees to construct an office building on it, paying rent plus taxes, insurance, and upkeep on the land. Which lease describes renting unimproved land for the tenant to develop?

A gross lease

A percentage lease

A ground lease

A sale-and-leaseback

Question 19: A purchase contract expressly states that time is of the essence and sets firm dates by which each party's obligations must be performed. A buyer who misses a required deadline under such a clause faces what consequence regarding the contract?

Liability for breach of contract

An automatic deadline extension

Conversion of the contract to voidable

No consequence if nearly complete

Question 20: A business leasing an entire commercial building in Cedar Rapids pays the base rent and also directly covers the real estate taxes, hazard insurance, and common area maintenance charges. Which lease type leaves the landlord with net rental income after those costs?

A gross lease

A net lease

A percentage lease

An index lease

IRES Iowa Real Estate Salesperson - Set 4 - Part 1

Question 1: Under the integrated disclosure rules, a lender must deliver a Loan Estimate soon after application and must ensure the borrower receives the Closing Disclosure a set number of business days before the closing itself. Which timing BEST states both required TRID deadlines?

Question 2: A borrower chooses a mortgage whose rate periodically resets to a published economic indicator plus a fixed percentage the lender adds as its cost of doing business. Which component, added to the index, BEST identifies that fixed percentage in the reset?

Question 3: A landowner holds a first lien from a seller who financed the purchase, and a construction lender will fund improvements only if its new loan takes first position. Which written instrument BEST accomplishes moving the seller's existing lien below the construction loan?

Question 4: A homeowner refinances the mortgage on a principal residence and, under Regulation Z, may cancel the transaction within three business days after signing the papers. To which kind of consumer credit transaction does this three-day right of rescission actually apply?

Question 5: A brokerage's advertisement states a specific down payment amount and monthly payment figure for a financed home, so Regulation Z requires additional disclosures such as the annual percentage rate and total payments. Which category of advertised specifics prompts that requirement?

Question 6: A real estate broker is offered a cash payment from a title company simply for steering buyers to that company, with no service actually performed in return. Which federal law's prohibition on kickbacks and unearned referral fees does this violate?

Question 7: A first-time buyer wants to purchase a run-down Cedar Rapids farmhouse and finance the repairs within a single loan, combining the purchase price and renovation costs so both are covered by one mortgage. Which type of financing is designed for this?

Question 8: A move-up buyer in Des Moines has not yet sold the current home but needs cash for a down payment on the next one, so a lender offers short-term financing to cover the gap until the old house sells. Which loan is this?

Question 9: A builder financing a new house draws funds in stages as work is completed and inspected, paying interest only on money actually disbursed, and expects to replace this short-term financing with permanent financing at completion. Which loan type is this?

Question 10: A homeowner who has paid down the first mortgage wants to borrow against accumulated equity through a revolving credit line, drawing funds as needed, while the original purchase loan stays in place ahead of this new debt. Which financing is this?

Question 11: A seller of an acreage near Sioux City finances the buyer directly, keeping legal title while the buyer takes possession and makes installment payments, and delivering a deed only after the entire balance is finally paid. Which financing arrangement does this describe?

Question 12: A buyer purchasing a farmhouse in a small Iowa town with fewer than ten thousand residents seeks a government-backed loan, administered by an agency of the Department of Agriculture, aimed at helping moderate-income families buy homes in rural areas. Which program fits?

Question 13: Two Cedar Rapids tenants each sign a lease tied to a future purchase. One is bound to buy at the term's end; the other merely holds the choice to buy. Which statement BEST captures the key difference between these two arrangements?

Question 14: A commercial tenant in West Des Moines transfers only part of the remaining lease term to a new occupant, staying responsible to the landlord for the rent and any damage. Which arrangement describes transferring less than the entire leasehold interest?

Question 15: During negotiations on a Cedar Rapids rental property, a buyer counters the seller's counteroffer, then changes his mind and withdraws that counter before the seller signs it. May the buyer pull back a counteroffer that has not yet been accepted?

Question 16: A West Des Moines seller receives three competing offers on the same condo in one afternoon. Wanting the strongest terms, the seller signs a counteroffer to only one buyer while setting the others aside. Regarding the other two original offers, what has the seller effectively done?

Question 17: A purchase contract specifies that if the buyer defaults, the seller may keep the earnest money deposit as the seller's sole remedy. When the buyer walks away without good reason, what does this clause allow the seller to do?

Question 18: An investor in Council Bluffs leases a vacant parcel for ninety-nine years and agrees to construct an office building on it, paying rent plus taxes, insurance, and upkeep on the land. Which lease describes renting unimproved land for the tenant to develop?

Question 19: A purchase contract expressly states that time is of the essence and sets firm dates by which each party's obligations must be performed. A buyer who misses a required deadline under such a clause faces what consequence regarding the contract?

Question 20: A business leasing an entire commercial building in Cedar Rapids pays the base rent and also directly covers the real estate taxes, hazard insurance, and common area maintenance charges. Which lease type leaves the landlord with net rental income after those costs?

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