1.2 Iowa License Requirements

Salesperson Eligibility and Education

The state portion tests the exact thresholds below, so commit the numbers to memory rather than the prose.

Personal eligibility

• Be 18 years of age before you apply (the bulletin notes you may sit for the exam before turning 18, but must be 18 to apply, and apply within six months of passing).
• Have not had a license application rejected, or a license revoked, in any state within the look-back periods stated by the Commission (twelve months / two years respectively).
• Satisfy the FBI/state criminal background check reviewed by IREC for suitability.

Pre-license education (96 hours total)

Applicants must complete a Commission-approved 60-hour pre-license course within the 12 months before taking the salesperson exam, plus 36 hours delivered as live instruction (in-person or live-virtual).

Exam trap: The three 12-hour courses are NOT optional electives. They must be live and completed before licensure. A choice that says "all 96 hours may be taken online" is wrong.

The Salesperson Examination (from the PSI bulletin)

A 70% standard applies to each portion (56/80 and 28/40), and the two portions are scored separately — you must pass both. Worked example: a candidate scoring 60/80 national but 26/40 state has failed because 26 is below the 28-question state cutoff, even though the national score is comfortably above 56.

Broker License Requirements

The broker path stacks experience and education on top of an active salesperson license, and the broker exam is NOT identical to the salesperson exam.

Experience and education

• 24 months of active service as a licensed real estate salesperson immediately preceding application.
• 60 hours of Commission-approved broker pre-license education completed within the 24 months before the broker exam.

Broker examination (note the different national count)

High-value trap: The salesperson national portion has 80 questions but the broker national portion has only 75. National broker items can be scored up to two points because of scenario "best answer" questions, which is why the passing count (60) differs from a simple 70% of 75.

Fees and Deadlines

Application Process (Salesperson)

1. Complete the 96 hours of education at an IREC-approved school.
2. Register and pay the $95 PSI fee (test within 90 days).
3. Bring the original paper completion certificate and matching photo ID to the PSI center.
4. Pass both portions (56 national / 28 state).
5. Submit the license application and fee to IREC by the sixth-month deadline.
6. Affiliate with a sponsoring broker — a salesperson cannot work independently.
7. Activate the license through that broker.

Key point: Passing the exam is not a license. Iowa issues the license only after IREC verifies education, background, E&O insurance, and broker affiliation.

Background Check and Suitability

Every applicant submits to a criminal background check with fingerprints reviewed against both FBI and Iowa state criminal-history records. IREC does not automatically bar applicants with a record; it reviews suitability. Factors that weigh against approval:

• Felonies involving fraud, dishonesty, or breach of trust (directly relevant to handling client money).
• Crimes tied to real estate transactions specifically.
• Recent criminal activity rather than remote, rehabilitated offenses.

Exam trap: A single old, unrelated misdemeanor does not automatically disqualify. The standard is whether the conviction bears on fitness to practice real estate honestly.

Retake and Re-Registration Rules

If a candidate fails one portion, only that portion typically must be retaken, but each attempt requires a new $95 registration and a new 90-day window. Because registration fees are nonrefundable and nontransferable, a no-show forfeits the fee entirely. The candidate must still bring the original paper completion certificate to every attempt.

Salesperson vs. Broker at a Glance

Key point: The broker exam's national portion is shorter (75 vs. 80) but uses multi-point "best answer" scenario items, so the cutoff (60) is not a simple percentage of question count.