IRES - Iowa Real Estate Salesperson

Question 21: After a buyer and seller both sign and accept a sales contract, but before closing, the buyer acquires a recognized interest in the property even though legal title has not yet transferred. Which interest does the buyer hold during this period?

Legal title

A leasehold estate

Equitable title

A lien on the property

Question 22: A broker wants every client to sign disclosures and agreements electronically instead of on paper. Before those electronic records and signatures will carry full legal effect under the Uniform Electronic Transactions Act, what fundamental condition regarding the parties must generally be satisfied first?

The state must pre-approve each form

A notary must witness signing

Ink signatures must follow later

The parties must agree to electronic dealing

Question 23: A tenant in Council Bluffs wants a home now but cannot yet obtain financing, so the parties agree at lease signing on binding sale terms, applying part of the rent toward the eventual price. Which arrangement obligates the tenant to buy once able?

A lease-option

A lease-purchase

A right of first refusal

A sale-and-leaseback

Question 24: At the closing table all terms have been fully performed: the seller has delivered the deed and received the price, and nothing remains for either party to do. Which term describes a contract that has reached this completed condition?

An executory contract

A voidable contract

An executed contract

An implied contract

Question 25: A Cedar Rapids tenant signs a lease that also grants the right, but not the duty, to buy the rented condo at a set price during the term, paying a fee for that privilege. Which arrangement gives the tenant this optional right to purchase?

A lease-option

A lease-purchase

A right of first refusal

A land contract

Question 26: In a signed option to purchase, the owner is bound to sell at the agreed price if the holder decides to buy, but the holder is under no duty to purchase at all. Regarding who may enforce it, an option is best characterized how?

Enforceable by the optionor only

Enforceable by both parties equally

Not a binding contract

Enforceable by the optionee only

Question 27: A listing broker offers through the multiple listing service to share compensation with any cooperating broker who produces a ready buyer. No cooperating broker is obligated to act, but one who performs earns the promised share. Which classification fits this arrangement?

A unilateral contract

A bilateral contract

An executed contract

A novation

Question 28: An inspection contingency in a Cedar Rapids contract gives the buyer ten days to inspect and object. The buyer completes inspections, raises no objections, and lets the period lapse. Once the deadline passes with no notice, what generally happens to that contingency?

The contract becomes void

It is deemed satisfied

The deposit is refunded

The offer is revoked

Question 29: A family bidding on a larger West Des Moines house must first sell their current home to fund the purchase and avoid owning two properties at once. Which contingency conditions their obligation to buy on successfully selling their existing residence?

An appraisal contingency

A financing contingency

An inspection contingency

A sale-of-home contingency

Question 30: A seventeen-year-old signs a purchase agreement for a Victorian home, meeting every requirement on the document's face, yet the law lets that young party disaffirm the deal because of age. Considering contract classifications, this agreement is BEST described as which of the following?

Void

Unenforceable

Voidable

Fully valid

Question 31: When a contract is terminated by a remedy that returns both parties to the positions they held before the agreement, so any money or property already exchanged must be given back, which of the following describes that particular remedy?

Rescission

Assignment

Novation

Cancellation

Question 32: A seller who has signed a valid sales contract refuses to convey the property to a ready, willing buyer. The buyer does not want money; the buyer wants the court to force the seller to transfer the property. Which remedy is the buyer seeking?

Liquidated damages

Specific performance

Rescission of the contract

Compensatory money damages

Question 33: A shoe retailer in a West Des Moines shopping center pays a minimum base rent plus an agreed portion of its monthly gross sales to the landlord. Which lease type ties part of the rent to the tenant's business income?

A gross lease

A ground lease

A graduated lease

A percentage lease

Question 34: A tenant renting an apartment in a West Des Moines building pays a fixed monthly amount, while the landlord covers the property taxes, insurance, and maintenance out of that rent. Which type of lease places the ownership expenses on the landlord like this?

A net lease

A percentage lease

A gross lease

A ground lease

Question 35: Two parties negotiate and complete a real estate purchase agreement entirely online, signing it with electronic signatures rather than pen and ink. Under widely adopted federal and state law governing electronic transactions, how are such electronic signatures generally treated?

As always invalid for realty

As valid only for leases

As requiring later ink signatures

As valid as handwritten signatures

Question 36: Before working closely with consumers, a real estate professional must tell each party which side he represents, so buyers and sellers can decide whether to seek their own representation. Which requirement compels the agent to make this known to the parties?

Property condition disclosure

Agency disclosure

Confidentiality agreement

Antitrust compliance

Question 37: A property owner traveling abroad signs a written instrument authorizing a trusted relative to sign the closing documents and act in the owner's legal affairs to complete the sale. The relative acting under this granted authority is known by which term?

Attorney-in-fact

Special agent

Subagent

Designated agent

Question 38: Two people attend the same showing: one has signed a buyer representation agreement with the agent, and the other has signed nothing. The represented party receives advice, counsel, and confidentiality. Which term identifies the person who signed nothing and receives only fair treatment?

Client

Principal

Customer

Fiduciary

Question 39: A licensee helps both a buyer and a seller complete the paperwork and formalities of a residential sale, treating each side honestly and competently but representing neither party and advocating for no one. Which term best identifies this non-agency role?

Dual agent

Transaction broker