Iowa Real Estate Broker Exam — All Questions

Iowa's Groundwater Hazard Statement is generally required to be completed and submitted:

• a.Only when a well is present and the buyer requests it
• b.In connection with the transfer of certain real property, filed with the deed at recording✓
• c.Only for commercial properties over one acre
• d.Only if the property is in a floodplain

Iowa's time-of-transfer rules require a Groundwater Hazard Statement disclosing conditions such as wells, solid-waste disposal, hazardous materials, underground storage tanks, and private sewage systems on the property. It is generally submitted with the deed when the transfer is recorded. Brokers should ensure the statement is completed so recording is not delayed.

Iowa requires the seller of most residential property (one to four units) to give the buyer a:

• a.Guarantee that the home has no defects
• b.Copy of the seller's original purchase contract
• c.Waiver of all inspection rights
• d.Written residential property condition disclosure statement before the buyer is bound✓

Iowa law requires sellers of most one-to-four-unit residential property to deliver a written property condition disclosure statement to the buyer, generally before the buyer makes a binding offer or before acceptance. It discloses known conditions affecting the property. It is a disclosure of known facts, not a warranty that the property is defect-free.

Under Iowa law, a licensee who wishes to act as a disclosed dual agent representing both buyer and seller must:

• a.Obtain approval from the county recorder
• b.Represent only the seller's interests despite the arrangement
• c.Obtain the written consent of both parties to the dual agency✓
• d.Charge a reduced commission set by the Commission

Iowa permits dual agency only when both the buyer and the seller give written consent after disclosure. Because a dual agent cannot fully advocate for either party, the licensee must keep each party's confidential information private. Consent is documented and the arrangement disclosed; no county approval or state-set commission is involved.

A supervising Iowa broker discovers that a licensee failed to deliver the required property condition disclosure to a buyer. The broker should:

• a.Ensure the disclosure is provided as required and address the licensee's compliance✓
• b.Do nothing because disclosures are solely the seller's concern
• c.Cancel the transaction and keep the earnest money
• d.Wait until after closing to raise the issue

Because the broker is responsible for supervising affiliated licensees, the broker must ensure the required disclosure is delivered and correct the licensee's compliance failure. Iowa's disclosure duties protect the buyer, and ignoring the omission could expose both the licensee and the broker to liability and discipline.