Iowa License Law
The Iowa Real Estate Commission may conduct an unannounced audit of a broker's trust account. The purpose of this audit is to:
ADetermine the broker's income for tax purposes
BVerify that client funds are properly maintained and not commingled✓ Correct
CSet the broker's commission rates
DAssess advertising compliance
Explanation
IREC audits of broker trust accounts verify that client funds (earnest money, security deposits, etc.) are properly maintained in separate accounts and not commingled with business funds.
Related Iowa Iowa License Law Questions
- Iowa's pre-license education requirement for a salesperson applicant is:
- An Iowa broker who receives earnest money must deposit it into the trust account within:
- Iowa's real estate pre-license broker education requirement is:
- Iowa prohibits a real estate licensee from engaging in which of the following practices regarding property inspections?
- Which of the following persons is NOT required to hold an Iowa real estate license?
- In Iowa, a real estate salesperson license applicant must complete how many hours of pre-license education?
- Iowa law defines 'real estate brokerage' as the business of:
- Under Iowa law, when a broker closes their brokerage, what must happen to current listings?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →