Iowa Real Estate Broker Exam — All Questions
4 questions
Which body licenses and regulates real estate brokers in Iowa?
- a.The Iowa Association of Realtors
- b.The Iowa Attorney General's real estate division
- c.The Iowa Real Estate Commission, within the Professional Licensing Bureau✓
- d.The county assessor's office
Real estate licensing in Iowa is administered by the Iowa Real Estate Commission, part of the Professional Licensing Bureau, under Iowa Code Chapter 543B and the rules in IAC Chapter 193E. A trade association is a private membership group with no licensing power, and assessors and the Attorney General do not license brokers.
In Iowa, the licensee responsible for a brokerage firm's licensed activity and trust account is the:
- a.Designated broker for the firm✓
- b.Most senior salesperson
- c.Firm's outside accountant
- d.Listing coordinator
Iowa requires each brokerage to have a broker responsible for supervising the firm's licensed activity and for the proper handling of the trust account and records. This designated/responsible broker is accountable to the Iowa Real Estate Commission for the firm's compliance. Salespersons and non-licensed staff cannot hold that responsibility.
An Iowa salesperson may lawfully accept a real estate commission:
- a.Directly from any buyer who is satisfied
- b.From the seller at the closing table in cash
- c.From another brokerage without the broker's knowledge
- d.Only from the employing broker, not directly from a client✓
Under Iowa license law, a salesperson performs licensed activity only for the employing broker, and compensation for that activity must flow through the broker. A salesperson may not accept a commission directly from a buyer or seller. This channeling of payment reinforces the broker's supervisory responsibility.
Which of the following is a common ground for the Iowa Real Estate Commission to discipline a broker?
- a.Belonging to a local board of Realtors
- b.Charging a negotiated commission agreed with the client
- c.Commingling trust funds or failing to supervise affiliated licensees✓
- d.Completing more than the minimum continuing education
The Iowa Real Estate Commission may discipline a broker for violations such as commingling or converting trust funds, failing to supervise affiliated licensees, misrepresentation, and other conduct prohibited by Chapter 543B and IAC 193E. Belonging to a trade association, negotiating a commission, and exceeding CE minimums are lawful and not grounds for discipline.