In order to kickstart your real estate career in Iowa, it’s essential to obtain an Iowa Real Estate License. However, despite the fact that the application process is mainly completed online nowadays, many applicants can still find it quite confusing and complicated.
For this reason, this How to Get a Real Estate License in Iowa article will break down the main steps involved in the licensing process, covering everything from educational requirements to exam preparation and having your fingerprints taken.
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Iowa Real Estate License
In order to get your Iowa real estate license and start working in the real estate industry, there are several key steps you’ll need to complete, including:
- Ensuring You Meet the Licensing Eligibility Requirements
- Completing the Mandatory Pre-Licensing Education
- Passing the Iowa Real Estate Exam
- Finding a Sponsoring Broker
- Obtaining E&O Insurance
- Passing a Background Check
- Submitting Your License Application
In the sections below, we’ve explored each of these steps in more detail.
Step 1: Meet the Iowa Real Estate License Requirements
Before continuing ahead with your application for an Iowa real estate license, you’ll first need to confirm that you’re actually eligible for it by ensuring you meet the following prerequisites:
- You must be at least 18 years old at the time you submit your application for a license; although you can sit for the exam before this
- You must not have been denied licensure in Iowa or any other state within the twelve months prior to your application
- You must not have had a real estate license revoked in any state within two years prior to your application date
Note: There are no residency or citizenship requirements for obtaining an Iowa real estate license, meaning that applicants will not be disqualified based on citizenship, sex, race, religion, marital status, or national origin, though the application may still request some citizenship information.
Step 2: Complete the Mandatory Pre-Licensing Education
In addition to the general requirements outlined above, there are certain educational prerequisites you’ll be expected to meet in order to be able to apply for an Iowa real estate license.
In particular, you’ll be expected to complete a 60-hour pre-license course on real estate principles and practices, which can be undertaken through live instruction or online learning.
Additionally, you will need to complete the following three courses, each offered exclusively through live instruction:
- 12 hours of Buying Practices
- 12 hours of Listing Practices
- 12 hours of Developing Professionalism and Ethical Practices
In total, you will need to complete 96 hours of coursework, all of which should be finished no more than a year before you submit your application to the commission.
Important
Even though completing the courses is mandatory, it would be a mistake to think of this step as just “checking a box”. This is because your pre-licensing education is what will prepare you to both pass your exam and become a better real estate agent.
For this reason, we always encourage our readers to invest in high-quality and reliable courses, as their study materials (like real estate practice tests and flashcards) can be invaluable during the exam prep stage.
On top of this, some of the top courses also offer money-back guarantees in the event that you do not pass your exam on your first attempt after taking their course.
Recommended Course
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Step 3: Pass the Iowa Real Estate Exam
The next step you’ll need to complete is to pass the Iowa Real Estate exam, which is administered by PSI and is structured into two main sections: a national portion and a state-specific portion.
- National Section: This part of the exam consists of 80 questions and must be completed in 120 minutes. It covers a broad range of topics including, but not limited to, real estate principles, property management, real estate finance, contracts, agency relationships, and federal real estate laws
- State Section: This section of the exam consists of 40 questions and must be completed within 60 minutes. It focuses on real estate laws and regulations specific to the state of Iowa, including real estate brokerage operations and property rights
Keep in mind that you will need to achieve at least 70% in both the national and state-specific sections in order to pass the Iowa Real Estate exam.
In order to schedule your real estate exam, you’ll need to head over to the PSI website and make an online reservation. If this is your first time using the platform, you’ll be required to create an account, after which you’ll be shown step-by-step instructions on how to complete the reservation. Alternatively, you can schedule your examination by calling PSI directly at (855) 898-0712.
In either case, you will need to pay a non-refundable, non-transferable examination fee of $95 at the time of scheduling in order to secure your spot.
Note: Keep in mind that exams are valid until the last working day of the sixth month following your exam pass date — meaning that you will have to submit your license application by then or your exam results will expire.
Step 4: Find a Sponsoring Broker
The state of Iowa does not allow licenses to be issued as “inactive”.
This means that you will need to affiliate with a broker proactively and have them sign the certification section of your license application before it’s filed.
Because this can take some time and your exam results are only valid for a limited period, we recommend starting as early as possible in order to make sure you don’t miss the deadline for submitting your license application.
Step 5: Obtain E&O Insurance
In Iowa, all active real estate licensees are required to obtain Errors and Omissions insurance coverage.
You will need to provide proof of this coverage when submitting your license application, as well as during any random E&O audits conducted by the Iowa Real Estate Commission (if applicable).
While the Commission endorses a group policy through Rice Insurance Services Center (RISC), you are free to choose any qualifying provider you want.
Having said that, should you opt for an alternative, you will need to consult Chapter 19 of the Iowa Administrative Code in order to ensure that the alternative coverage you choose meets all state requirements.
Step 6: Passing a Background Check
Before submitting your application for a real estate license in Iowa, you are required to undergo a national criminal history check through the FBI, as mandated by Iowa Code section 543B.15(9).
Given that this process will take at least four weeks, it is advisable to start as early in the application process as you can; remember, the results will only remain valid for 210 calendar days from the date the background check is conducted.
To initiate the background check, applicants will need to:
- Access the DataPro website, referred to as My Iowa PLB, and create an account
- Request a fingerprint packet by using the “RE – Background Request” application
- Pay a fee of $51 to complete the fingerprint request submission
Keep in mind that as of June 2024, the average processing time for real estate licensing background checks in Iowa is five to six weeks from the time the commission receives your completed application, fingerprint card, and processing fee.
Step 7: Submit Your License Application
After passing the state real estate exam and satisfying all other licensing requirements, you’ll be ready to move onto submitting your license application.
This can be done online through your My Iowa PLB account on the Iowa Department of Inspections, Appeals, and Licensing website.
Once you have logged in, you will need to attach all required documents and complete the submission process by paying a licensing fee of $125.
Step 8: Application Review
If you’ve managed to get this far, congratulations! With your application submitted and all the other licensing requirements satisfied, in most cases you should receive a letter from the Iowa Real Estate Commission containing a license document within 10 business days, as long as everything in your application is in order.
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: At any time during the application process, you can log into your My Iowa PLB account to check the status of your application.
Iowa Real Estate License Renewal
In order to keep your license valid and continue working as a real estate sales agent, you’ll need to renew your license every three years.
Your license will expire on December 31 in the final year of your renewal cycle, and you will be notified by the Iowa Real Estate Commission at least 60 days prior to this date.
Your license can be renewed online at the ‘My Iowa PLB’ website; to be eligible for renewal, you must have stayed up-to-date with your continuing education (CE) requirements during the three-year period prior to your license renewal. These requirements include:
- 8 hours of Law Update
- 4 hours of Ethics
- 24 hours of Commission-Approved Electives
It should be noted that at least 12 hours of your continuing education will have to be completed via live instruction, while the rest can be completed through distance learning.
You should also keep in mind that a $125 renewal fee will need to be paid for this.
Note: Nonresident brokers licensed in states with similar licensing requirements may be exempt from taking the examination, thanks to reciprocal agreements.
If your state recognizes Iowa’s licenses similarly, you might qualify for this exemption. For detailed guidance and application procedures, please reach out to the Iowa Real Estate Commission.
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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/about/boards/real-estate
Iowa Real Estate License FAQ
How long does it take to become a real estate agent in Iowa?
The time it will take you to become a real estate agent in Iowa depends on how fast you complete the necessary steps, which include a 96-hour pre-licensing course, passing the state real estate exam, finding a sponsoring broker, obtaining E&O insurance, and fulfilling the required background check conducted by the FBI.
Having said that, even at the fastest pace, most candidates will need at least 3 months from start to finish in order to obtain their license.
How much does it cost to get a real estate license in Iowa?
To get a real estate license in Iowa, you will need to pay $95 for the exam fee, $51 for the background check fee, and $125 for the license application fee.
Additionally, you will need to cover the costs for the required pre-licensing education and E&O insurance, which vary by provider.
Keep in mind that many providers offer online courses, which can be more cost-effective and flexible compared to traditional classroom settings.
Is the Iowa real estate exam hard?
The Iowa real estate exam can be considered challenging as it covers a wide range of topics, including real estate principles, practices, and state-specific laws.
Having said that, with dedicated study and a good understanding of the material, candidates who allocate sufficient time for preparation often find success on their first attempt.
Interested in finding out more? You can have a look at our state specific How to Get a Real Estate License guide.
How do I get my real estate license in Iowa?
To get your real estate license in Iowa, you must complete the required pre-licensing education, pass the licensing exam, find a sponsoring broker, obtain E&O insurance, and pass a background check conducted by the FBI.
Once you have completed all these steps, you will have to submit your license application through the ‘My Iowa PLB’ website.
For more information on this topic, you can check out our How to Get a Real Estate License in Iowa guide.
How do I become a real estate broker in Iowa?
To become a real estate broker in Iowa, you will first need to meet the eligibility requirements, which include completing the required pre-licensing education and gaining experience as a licensed salesperson.
Next, you will have to pass the Iowa broker exam. Once you have passed the exam, you need to fill out the broker’s license application form and submit it online through the ‘My Iowa PLB’ website.