Agency
An agent who represents a buyer discovers the property has a cracked foundation that is not visible. The agent's duty to disclose this defect to the buyer is:
AOptional — only required if the buyer asks directly
BMandatory — it is a known material defect that must be disclosed✓ Correct
CRequired only if the agent has a written agency agreement
DNot required until the inspection report confirms the defect
Explanation
Known material defects — including hidden or latent defects — must be disclosed by the agent to their buyer client. The duty to disclose is proactive, not reactive.
Related Iowa Agency Questions
- Iowa's exclusive agency listing agreement differs from an exclusive right-to-sell because:
- Under Iowa agency law, a seller's agent owes which duty to the buyer?
- Iowa's NAR Code of Ethics, applicable to REALTORS® in Iowa, requires:
- A buyer's agent in Iowa who discovers a material defect in the property during a showing must:
- Iowa's agency disclosure requirements mandate that a licensee provide the agency disclosure form to a consumer:
- In Iowa, a seller's agent who represents the seller receives an offer from an unrepresented buyer. The agent owes the buyer:
- Under Iowa law, a seller's agent who discovers a material defect not disclosed by the seller has a duty to:
- An Iowa broker learns of a material fact about a property during the listing appointment. The broker's duty to disclose this to a buyer applies:
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →