How to Get a Broker License in Iowa

Obtaining an Iowa Real Estate Broker License is crucial if you’re looking to advance your real estate career. Despite the streamlined online application process, many aspiring real estate brokers find the requirements and procedures complex and challenging.

This How to Get a Broker License in Iowa article will guide you through each step of the process, ensuring you have a clear understanding of what it takes to achieve this license and elevate your real estate career as quickly as possible.

Iowa Real Estate Broker License

In order to get your Iowa real estate broker license and take your career to the next level, there are several key steps you’ll need to complete, including:

1. Ensuring You Meet the Eligibility and Experience Requirements
2. Completing the Mandatory Pre-Licensing Education
3. Passing the Iowa Broker Licensing Exam
4. Passing a Background Check
5. Obtaining Errors and Omissions Insurance
6. Submitting a License Application

In the sections below, we’ve explored each of these steps in more detail. 

Note: If you’re just starting out, you’ll need to check out our Iowa Real Estate License guide instead.

Step 1: Meet the Iowa Eligibility and Experience Requirements

Before proceeding with the application process for your Iowa real estate broker license, you’ll need to first make sure that you meet the general prerequisites outlined under the Iowa Code § 543B.15:

• Must be 18 years of age or older
• Cannot have had any real estate license applications rejected in any state in the 12 months prior to applying for an Iowa broker license
• Cannot have had any real estate licenses revoked in any state in the two years prior to your application

It’s also worth being aware that, if you’ve been convicted by one of the following types of offenses, you’ll have to wait until the stipulated time period has passed before you can apply for a broker license:

• Any felony, arson, theft, and any offense involving a criminal breach of fiduciary responsibility, such as forgery or embezzlement (5 years)
• Any offense involving moral turpitude (1 year)

In addition to the general eligibility requirements outlined above, you’ll also be expected to have gained at least 24 months of active experience as an Iowa real estate agent, former broker, or manager of real estate according to Iowa Code § 543B.15(7).

Please note that for the purpose of the above experience requirement, the statute also permits experience that it considers to be “substantially equal to that which a licensed real estate salesperson would ordinarily receive” during the above period to be satisfactory.

Step 2: Complete the Mandatory Pre-Licensing Education

Beyond the general requirements mentioned earlier, you must also fulfill specific educational prerequisites under Iowa Code § 543B.15(7) to be able to apply for an Iowa real estate broker license.

In particular, this will involve completing a total of 60 hours of pre-licensing education that’s broken down according to Iowa Administrative Code 193E—16.3(543B) as follows:

• Contract Law and Contract Writing (6 hours)
• Ethics and Safety Issues for Brokers (6 hours)
• Federal and State Laws Affecting Iowa Practice (6 hours)
• Iowa Real Estate Trust Accounts (6 hours)
• Principles of Appraising and Market Analysis (6 hours)
• Real Estate Finance (6 hours)
• Real Estate Law and Agency Law (6 hours)
• Real Estate Office Organization, Administration & Human Resources (12 hours)
• Real Estate Technology and Data Security (6 hours)

Under 193E—16.3(2), you’ll need to pass an exam administered by your course provider that sufficiently tests you on all aspects of your pre-licensing broker education. Additionally, the designated time for this exam can be included as part of your minimum required number of hours of instruction.

After satisfying all of your course’s requirements and passing this exam, you should be handed a Pre-license Education Completion Certificate. Make sure to hold onto this as you’ll need to bring a paper copy of it with you in order to sit your broker exam (see Step 3).

Keep in mind that this certificate will expire after a period of 24 months, so you’ll need to sit and pass the broker examination within this time to avoid having to re-complete these pre-licensing education requirements.

Step 3: Pass the Broker Licensing Exam

In Iowa, the real estate broker exam is three hours long, administered by PSI, and contains 115 questions that are worth 120 points.

These questions are divided across two sections: a National portion made up of 75 questions and a State-Specific portion composed of 40 questions.

In order to schedule your real estate broker exam, you’ll need to make an online reservation using the PSI website. Note that you’ll need to create an account for this service if this is your first time using it, after which you’ll be shown step-by-step instructions on how to complete your reservation.

Keep in mind that you’ll be required to pay a $95 fee at the time of reservation, as this cannot be paid at the exam center. Examination registrations will only be valid for 90 days — if you wait any longer than this, you’ll need to re-register to take the exam.

To pass, you’ll need to obtain a score of 60 on the National portion and 30 on the State-Specific portion (i.e., an overall score of 90). You’ll see your score on-screen immediately after finishing and should shortly receive a copy of your score report via email later.

If successful, you’ll receive a real estate license application form alongside your score report, in addition to instructions on how to complete it.

Note: You’ll need to complete and submit your application by the last business day of the six month following the date you passed the broker licensing exam.

Step 4: Pass the Background Check

With the above steps out of the way, you’ll be ready to move on to kickstarting your national criminal history check through the FBI, in accordance with Iowa Code § 543B.15(9).

To do this, you’ll need to sign up for My Iowa PLB (which is also known as DataPro), and then electronically request a fingerprinting packet using the “RE – Background Request” packet. Finally, you’ll need to pay a $51 fee in order to submit this application, plus a completed fingerprint card and waiver.

Make sure that you don’t submit any part of your application directly to the FBI (e.g., your application or fingerprint card) — all of it must be filed with the Iowa Real Estate Commission. We recommend checking out the IREC Application Instructions for more detailed guidance on how to complete this step.

It’s also important to be aware that the Commission typically takes between five and six weeks to process this request after they receive your completed background application and fingerprint card.

Note: You can read more about the sorts of offenses that may disqualify you in the Iowa Department of Inspections, Appeals, and Licensing’s (DIALS) List of Criminal Offenses Directly Relating to the Real Estate Profession.

Step 5: Obtain E&O Insurance

The final step you’ll need to complete before you can submit your broker license application is to obtain Errors and Omissions (E&O) insurance. In Iowa, this requirement for insurance coverage is imposed on all active real estate licensees, including both salespersons and brokers.

In Iowa, the Commission recommends real estate licensees opt for a group policy through Rice Insurance Services Center (RISC) as the best way to satisfy this E&O requirement. That being said, you’re under no obligation to use this specific provider, and can choose any other qualifying insurance carrier.

Should you opt for an alternative, you’ll need to make sure that it meets the state’s criteria for other coverage options listed under Iowa Administrative Code 193E—19.3(543B).

Note: This is not just a one-off requirement you’ll need to satisfy in order to obtain your broker license — you’ll need to continuously hold this coverage as long as you’re active. The Commission even carries out random E&O audits in order to check this.

Step 6: Submit a License Application

After receiving a passing score on the broker examination and ensuring that you satisfy all other licensing requirements, you’ll be ready to move on to submitting your license application.

You must submit your application through the online licensing portal My Iowa PLB of the Iowa Professional Licensing Bureau, alongside a $170 license fee and all of the following:

• A passing score report from PSI
• A Pre-license Education Completion Certificate (dated within 24 months prior to examination)
• Your Iowa salesperson license
• Proof of E&O insurance coverage

If your place of residence is based outside the state of Iowa, you’ll also be expected to complete the “Nonresident Consent” section of the application.

Finally, you’ll be required to finish your application off by signing the form and having the signature notarized.

Note: If your Iowa salesperson license is inactive — or you don’t have one — you’ll be required to provide an explanation of why this is the case alongside your application.

Step 7: Application Review

If you’ve managed to get this far, congratulations!

After submitting your application, it will generally take the Commission’s staff up to 14 business days to complete the processing of your application. You can log in to your My Iowa PLB account at any time to check its progress.

Be sure to take some time to celebrate your accomplishment. You’ve put in a lot of work and effort and deserve a celebration!

Note: If you’re not sure what’s happening with your license and it’s been longer than expected, we recommend reaching out to IREC directly, either by phone or email.

Iowa Real Estate License Renewal

In order to keep your real estate broker license valid, you’ll need to renew it every three years. In Iowa, this needs to be done electronically through the My Iowa PLB platform by December 31 of the final year of each renewal period.

For you to be able to renew, you’ll need to satisfy the following continuing education (CE) requirements during each three-year period:

• Ethics (4 hours)
• Law Update (8 hours)
• Commission-Approved Elective Courses (24 hours)

It’s important to be aware that a minimum of 12 hours of your total CE requirement have to be taken “via live instruction” (i.e., in an in-person, classroom setting), though it’s up to you which courses you decide to take in this way.

We always encourage our readers to think of the post licensing course they take as an investment in their future career — higher quality, more reliable course content is a central part of ensuring you continue to grow professionally.

Iowa Department of Inspections, Appeals & Licensing

Mailing Address:
Iowa Real Estate Commission
6200 Park Ave, Suite 100
Des Moines, IA 50321

Phone: (515) 725-9022

Email: RealEstateCommission@iowa.gov 

Website: https://dial.iowa.gov/boards/real-estate