Iowa Real Estate Salesperson Exam — All Questions

Under Iowa's brokerage relationship rules, when must a licensee disclose the party for whom the licensee is acting?

• a.Only after a purchase agreement is signed
• b.Within 30 days after closing
• c.In writing before or at the time the parties enter a binding agreement, and consistent with the licensee's duty to disclose whom the licensee represents✓
• d.Only if the buyer asks who the agent represents

Iowa requires a licensee to disclose in writing the brokerage relationship, including whom the licensee represents, so a consumer is not misled about representation before committing to the transaction. Early written disclosure lets a buyer or seller understand whether the licensee is a client's agent before sharing negotiating information.

An Iowa broker wishes to represent both the seller and the buyer in the same transaction. Under Iowa law this dual agency is permitted only if:

• a.The broker refunds part of the commission
• b.The two parties live in different counties
• c.The transaction price is below a statutory limit
• d.Both parties give written consent after being informed of the dual agency✓

Iowa allows a broker to act as a disclosed dual agent representing both seller and buyer only with the written, informed consent of both parties. Because a dual agent cannot fully advocate for either side, the licensee must not reveal one party's confidential information, such as the most a buyer will pay, to the other.

Iowa's agency disclosure rule requires a licensee to make the disclosure verbally:

• a.at the first showing of any property that the broker has listed
• b.before providing specific assistance to a client or customer✓
• c.at closing, when the settlement statements are finally delivered
• d.within three days after a purchase agreement is signed

Verbal disclosure of which party the licensee represents must be made before the licensee provides specific assistance; a written disclosure, acknowledged by separate signatures, must follow before any offer is made or accepted. Cite: Iowa Admin. Code r. 481—2012.2(2)-(3); Iowa Code § 543B.57(2).

Under Iowa Code § 543B.57, which of these IS “specific assistance” that triggers agency disclosure?

• a.Hosting an open house and greeting visitors at the door
• b.Answering a factual question about an advertised listing
• c.Discussing general price ranges and house styles
• d.Accepting confidential information about a buyer's finances✓

“Specific assistance” means eliciting or accepting confidential information about a party's real estate needs, motivation or financial qualifications, or information involving a proposed or preliminary offer on specific real estate. It expressly excludes an open house showing, preliminary conversations about price range, location and property styles, and answering general factual questions about advertised properties. Cite: Iowa Code § 543B.57(2)“c”.

Every licensed Iowa brokerage, including a sole-proprietor single broker, must maintain:

• a.a resident manager licensed as a broker in two or more other states
• b.a signed subagency agreement filed with the local listing service
• c.a written company policy describing its brokerage relationships✓
• d.a separate trust account for every client that the brokerage serves

Every licensed sole proprietor, firm, partnership, limited liability company, association or corporation must have a written company policy identifying and describing the types of brokerage relationships it offers, whatever those types may be. Cite: Iowa Admin. Code r. 481—2012.1.

An Iowa disclosed dual agency consent agreement must, among other things, tell the clients that:

• a.the commission approved the exact wording used
• b.they are not obligated to consent to dual agency✓
• c.either client may cancel the sale at any time
• d.the broker's compensation is doubled in such a deal

The consent agreement must describe the representation, state the licensee's duties under Iowa Code § 543B.56(1) and (2), warn that representing more than one party may present a conflict of interest, and inform the clients that they are not obligated to consent to dual agency. Cite: Iowa Admin. Code r. 481—2012.5(2)“e”; Iowa Code § 543B.58(1).

An Iowa designated broker appoints one affiliated licensee to the seller and another to the buyer in the same sale. The designated broker is:

• a.not a dual agent solely because of the appointments✓
• b.a disclosed dual agent, solely because of the appointments
• c.barred from the transaction until one client withdraws
• d.required to refer both clients elsewhere

A brokerage and its designated broker are not considered dual agents solely because of an appointment under Iowa Code § 543B.59; only an affiliated licensee who personally represents both sides is a disclosed dual agent. Cite: Iowa Code § 543B.59(2); Iowa Admin. Code r. 481—2012.7(3).

In Iowa, an offer of subagency made through a multiple listing service is:

• a.automatic for every MLS participant
• b.permitted if the listing broker pays
• c.barred; MLS membership creates no subagency✓
• d.required when the seller declines agency

A licensee is not a subagent of another licensee's client solely by reason of membership or affiliation in a multiple listing service or similar information source, and an offer of subagency shall not be made through such a service. Cite: Iowa Code § 543B.63.

Iowa Code § 543B.56A requires a signed brokerage agreement before a broker shows a property to a buyer, EXCEPT for:

• a.a buyer who has already been prequalified by a lender
• b.a buyer who is a past client of the same brokerage
• c.a buyer paying all cash rather than financing the purchase
• d.a buyer attending an open house or an auction✓

The brokerage agreement requirement does not apply to customers attending an open house or auction, to a potential buyer of a property of more than four dwelling units, or to property not intended for human inhabitance. Cite: Iowa Code § 543B.56A(3), as amended by 2025 Iowa Acts ch. 83, § 2.

An exclusive listing on Iowa residential property must state a definite expiration date not to exceed:

• a.six months from the effective date
• b.one calendar year from the effective date✓
• c.two years from the effective date
• d.the date on which the seller's mortgage matures

All Iowa brokerage agreements must be in writing, state the compensation together with a disclosure that compensation is negotiable and not set by law, carry the signatures of all parties, and for residential property state a definite expiration date not exceeding one calendar year from the effective date. Cite: Iowa Admin. Code r. 481—2011.1.

To enforce a protective clause after an Iowa exclusive brokerage agreement expires, the broker must:

• a.record the expired brokerage agreement with the recorder
• b.notify the commission in writing within ten days of the expiration
• c.obtain the buyer's written consent to the protection being claimed
• d.furnish the client a written list of prospects before expiration✓

The agreement must contain a protective clause establishing a definite protection period, and before expiration the broker must furnish in writing the names and available contact information of persons to whom the property was presented, or a list of properties shown, delivered by personal or electronic service with written acknowledgment or by mail postmarked before expiration. Cite: Iowa Admin. Code r. 481—2011.5 (ARC 9477C, effective 9/10/2025).

An Iowa seller refuses to sign the agency disclosure document. The licensee must:

• a.note the date, place, time and others present on the form✓
• b.stop all work on the property until the seller signs it
• c.file a written complaint with the commission
• d.have the refusal witnessed by a notary public in Iowa

If a party refuses to sign or to acknowledge receipt, the licensee notes that fact with the date, place, time and names of others in attendance on a copy of the disclosure, obtains other documentation establishing delivery, and keeps it in the transaction file. Cite: Iowa Admin. Code r. 481—2012.2(10).