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.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✓
• c.Within 30 days after closing
• 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 transaction price is below a statutory limit
• b.The two parties live in different counties
• c.The broker refunds part of the commission
• 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.