If you're considering a career in real estate in Iowa, understanding the state's licensing requirements is essential. The Iowa Real Estate Commission (IREC) oversees the licensing process, ensuring that all agents meet specific educational and ethical standards. Here's a comprehensive guide to help you navigate the steps to become a licensed real estate salesperson in Iowa.
How to Get Your Iowa Real Estate License
Meet Basic Eligibility Requirements
Before starting your real estate journey, ensure you meet the following criteria:
- Be at least 18 years old
- Hold a high school diploma or equivalent
- Be a U.S. citizen or lawfully admitted alien
Complete 60 Hours of Pre-Licensing Education
Enroll in a state-approved 60-hour pre-licensing course, which covers essential topics such as real estate principles, practices, and Iowa-specific laws. These courses are available both online and in-person through various providers, including the Iowa Association of REALTORS® and Iowa Real Estate School.
Complete Additional 36 Hours of Required Courses
In addition to the 60-hour course, you must complete the following three 12-hour courses:
- Buying Practices
- Listing Practices
- Developing Professionalism and Ethical Practices
These courses must be taken in person or via live virtual instruction and completed within 12 months prior to your license application
Pass the Iowa Real Estate Salesperson Examination
Schedule and pass the Iowa Real Estate Salesperson Exam, administered by PSI. The exam consists of two parts: national and state-specific sections, each requiring a minimum score of 70% to pass. The exam fee is $95
Submit Fingerprints and Background Check
Undergo a criminal history and background investigation. This process includes checks through the Iowa Division of Criminal Investigation (DCI), the Federal Bureau of Investigation (FBI), and Iowa Courts Online. The background check is valid for 210 calendar days.
Obtain Errors and Omissions Insurance
To activate your license, you must obtain errors and omissions insurance. This insurance protects real estate businesses from mistakes made during professional service. Proof of coverage must be provided with your license application.
Apply for Licensure
Submit your application through the Iowa Professional Licensing Bureau's "My Iowa PLB" portal. You'll need to provide proof of completed education, exam score reports, background check results, errors and omissions insurance, and the application fee of $125. You must apply for your license within six months of passing the exam.
Select a Sponsoring Broker
To activate your license, you must affiliate with an Iowa-licensed real estate broker. Your broker will guide you through the application process and provide mentorship as you begin your career.
Post-Licensing and Continuing Education
Post-Licensing Education
New licensees must complete 36 hours of post-licensing education within the first year of licensure. This includes the three 12-hour courses mentioned earlier if not completed prior to licensure.
Continuing Education
To maintain your license, Iowa requires 36 hours of continuing education every three years, including 8 hours of mandatory courses and 28 hours of elective courses.
Estimated Costs
Here's a breakdown of the typical costs associated with obtaining your Iowa real estate license:
- Pre-Licensing Course: $425 – $485
- Additional 36 Hours of Courses: $300 – $400
- Application Fee: $125
- Background Check: $51
- Exam Fee: $95
- Errors and Omissions Insurance: $200 – $300 per year
Total Estimated Cost: Approximately $1,200 – $1,500
Reciprocity Agreements
Iowa offers reciprocity to licensed agents from certain states. To obtain a reciprocal license, applicants must hold an active license in good standing from their home state and meet specific requirements set by the Iowa Real Estate Commission.
Embarking on a real estate career in Iowa involves a structured process, from education to examination and ongoing learning. By understanding and following these requirements, you can establish a successful career in Iowa's dynamic real estate market. Global Real Estate School is here to help guide you.