Iowa License Law
What is the purpose of Iowa's real estate trust account requirements?
ATo allow brokers to earn interest on client funds
BTo safeguard earnest money and client funds separate from the broker's operating accounts✓ Correct
CTo consolidate all company revenue
DTo satisfy tax obligations for commissions
Explanation
Iowa law requires brokers to maintain separate trust (escrow) accounts for client funds such as earnest money deposits. Commingling these funds with operating funds is a serious violation subject to IREC discipline.
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