Iowa Real Estate Salesperson Exam — All Questions
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Which body issues and regulates real estate salesperson and broker licenses in Iowa?
- a.The Iowa Association of Realtors
- b.The Iowa Real Estate Commission✓
- c.The Iowa Department of Revenue
- d.The county recorder where the licensee lives
Real estate licensing in Iowa is administered by the Iowa Real Estate Commission under Iowa Code Chapter 543B. The Commission issues, renews, and disciplines licenses and adopts the administrative rules that govern practice. A trade association such as the Iowa Association of Realtors is a private membership group with no licensing authority.
In Iowa, a licensed salesperson may lawfully perform real estate brokerage activity only when the salesperson is:
- a.Employed by and acting for a licensed Iowa broker✓
- b.Operating independently under the salesperson's own license
- c.Approved by the Commission for each individual sale
- d.A member of a local Realtor board
Under Iowa Code Chapter 543B, a salesperson's license is valid only while the salesperson is associated with and acting on behalf of a licensed broker. The broker supervises the salesperson and is responsible for trust funds. A salesperson may not accept compensation directly from a client; commissions are paid through the employing broker.
The Iowa Real Estate Commission may discipline a licensee for which of the following?
- a.Belonging to more than one professional association
- b.Advertising a listed property with the seller's consent
- c.Commingling client trust funds with the broker's personal or business funds✓
- d.Referring a client to a licensed home inspector
Commingling or converting client trust money is a serious violation of Iowa license law and a common basis for discipline, along with fraud, misrepresentation, and dishonest dealing. The Commission may reprimand, fine, suspend, or revoke a license after due process. Lawful advertising with consent and ordinary referrals are not violations.