Iowa Real Estate Practice Exam 2026 – Full Prep Resource

The correct answer is rooted in the nature of the penalties that a real estate commission can impose on licensees. Regulatory agencies, such as a real estate commission, generally have the authority to enforce rules and standards within their jurisdiction to ensure that all licensed professionals adhere to legal and ethical guidelines. This can include penalties such as suspension, monetary fines, or even allowing for a probationary period where a licensee must meet specific conditions to retain their license.

The option indicating "30 days in jail" does not align with the powers typically held by real estate commissions. Jail time is a criminal penalty imposed by the criminal justice system, not an administrative penalty that a commission can enforce. While certain severe violations of real estate law could lead to criminal charges resulting in incarceration, the commission itself does not have the authority to sentence an individual to jail. Instead, they focus on professional licensure sanctions.