The director shall provide each original applicant for an examination with a manual containing a sample list of questions and answers pertaining to real estate law and the operation of the business and may provide the same at cost to any licensee or to other members of the public. The director shall ascertain by written examination, that each applicant, and in case of a corporation, limited liability company, limited liability partnership, or partnership, that each officer, agent, or partner thereof whom it proposes to act as licensee, has:

     (1) Appropriate knowledge of the English language, including reading, writing, spelling, and arithmetic;

     (2) An understanding of the principles of real estate conveyancing, the general purposes and legal effect of deeds, mortgages, land contracts of sale, exchanges, rental and option agreements, and leases;

     (3) An understanding of the principles of land economics and appraisals;

     (4) An understanding of the obligations between principal and agent;

     (5) An understanding of the principles of real estate practice and the canons of business ethics pertaining thereto; and,

     (6) An understanding of the provisions of this chapter.

     The examination for real estate brokers shall be more exacting than that for real estate salespersons.

     All moneys received for the sale of the manual to licensees and members of the public shall be placed in the real estate commission fund to be returned to the current biennium operating budget.

[1997 c 322 § 9; 1972 ex.s. c 139 § 11; 1951 c 222 § 11. Formerly: 1947 c 203 § 2, part; 1945 c 111 § 4, part; 1941 c 252 § 12, part; Rem. Supp. 1947 § 8340-35, part.]