The process of becoming a licensed real estate salesperson in Iowa is governed by the Iowa Real Estate Commission (IREC). Obtaining the license requires meeting educational, ethical, and administrative standards. This career path involves completing extensive coursework, passing a standardized examination, and securing a professional affiliation. This guide details the step-by-step requirements for earning an active real estate license in Iowa.
Initial Licensing Requirements and Prerequisites
Iowa requires all applicants to satisfy foundational criteria before applying for a salesperson license. Applicants must be at least 18 years of age when submitting their final license application.
A mandatory state and federal criminal background check is required for all applicants. This must be initiated through the Iowa Professional Licensing Bureau (PLB) online system by submitting a request for a fingerprint packet and paying a $51 fee. The background check results are valid for 210 calendar days, and the final license application must be submitted before this period expires.
Mandatory Pre-Licensing Education
The Iowa Real Estate Commission mandates that all salesperson applicants successfully complete 96 hours of IREC-approved coursework. This education is broken down into a core curriculum course and three specific topic-based courses. All 96 hours must be completed within 12 months prior to the date the license application is submitted.
60-Hour Principles of Real Estate Course
The foundation of the pre-licensing requirement is the 60-hour course covering the principles and practices of real estate. This course provides an overview of real estate law, finance, appraisal, and property management. Completing this 60-hour course is a prerequisite that must be met before a candidate is eligible to schedule and sit for the state licensing examination.
36 Hours of Required Specific Topics
In addition to the core curriculum, applicants must complete three separate 12-hour courses, totaling 36 hours of instruction. These courses are Buying Practices, Listing Practices, and Developing Professionalism and Ethical Practices, focusing on the practical application of real estate principles. While the 60-hour course may be completed online, these three courses must be taken via live instruction, such as in a classroom or through a live-streamed virtual format.
Passing the Iowa Real Estate Licensing Examination
After completing the 60-hour Principles course, candidates register for the licensing examination administered by PSI. The exam is divided into two sections: a national portion covering general real estate principles and a state-specific portion focusing on Iowa law and regulations. Candidates are allotted 120 minutes for the national section and 60 minutes for the state section.
To pass, candidates must achieve a score of 70% or higher on both portions. If a candidate fails one portion, they only need to retake the failed section, but they must pay the $95 examination fee for each attempt.
Submitting Your Official License Application
Passing the licensing examination triggers a strict deadline for securing the license. The completed application must be submitted to the IREC no later than the last working day of the sixth month following the date the exam was passed. Failing to meet this deadline requires the candidate to retake and pass the entire examination again.
The application is submitted electronically through the My Iowa PLB online portal. Candidates must provide proof of all 96 hours of pre-licensing education, verification of the completed criminal background check, and proof of Errors and Omissions (E&O) insurance. A $125 license fee is required. The application also requires the signature of a licensed Iowa broker who has agreed to sponsor the new licensee.
Finding a Sponsoring Brokerage
A real estate salesperson license is issued in active status only when affiliated with a licensed supervising broker. State regulations prohibit a new salesperson from conducting any business independently until a sponsoring brokerage is secured and the broker’s signature is on the license application. This affiliation ensures the new agent operates under the supervision of an experienced managing broker.
New agents should seek a brokerage that offers a supportive environment, focusing on commission splits, access to the Multiple Listing Service (MLS), and structured training programs. A strong mentorship program is beneficial, providing guidance on contract writing and client management. The sponsoring broker assumes responsibility for the new agent’s real estate activities.
Understanding Post-Licensure Obligations
The license must be actively maintained through continuing education (CE) and timely renewal. All individual real estate licenses in Iowa are issued for a three-year term, expiring on December 31st of the renewal year. Licensees must proactively manage their education to ensure they meet the renewal deadline.
For each three-year renewal cycle, the salesperson must complete a total of 36 hours of approved continuing education. This total must include 8 hours of mandatory Law Update material and 4 hours of Ethics training. The remaining 24 hours are completed through elective courses. A maximum of 24 hours can be completed via distance learning, requiring the remaining 12 hours to be taken via live instruction.
Estimated Costs and Timeline
The financial investment to become a licensed agent in Iowa typically ranges from $1,200 to over $2,000, depending on education providers and retake fees. Key expenses include the $51 background check fee, the $95 PSI examination fee per attempt, and the $125 initial state license application fee. The tuition for the 96 hours of required pre-licensing education is the largest variable cost.
The timeline for the entire process is generally between three and six months, depending on the candidate’s schedule. The mandatory background check can take five to ten weeks to process, which significantly impacts the overall timeline. Once the education and exam are complete, candidates must maintain momentum due to the strict six-month deadline to submit the final application.