Iowa License Law

Iowa prohibits a real estate licensee from engaging in which of the following practices regarding property inspections?

ARecommending licensed home inspectors to clients
BAccepting undisclosed compensation from an inspector in exchange for referrals✓ Correct
CAttending an inspection with the buyer
DProviding the inspector with access to the listed property

Explanation

Accepting undisclosed referral fees or kickbacks from service providers (inspectors, lenders, title companies) is a violation of Iowa license law, RESPA, and ethical standards. All referral compensation arrangements must be disclosed to the client.

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