Iowa Real Estate Practice Exam

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Study for the Iowa Real Estate Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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If a salesperson's license is revoked for misconduct, what action will the commission take towards the employing broker if they were unaware of the issue?

They will revoke the broker's license
They will give a warning to the broker
They will neither suspend nor revoke the broker's license
The broker will face penalties

The correct answer is: They will neither suspend nor revoke the broker's license

The commission recognizes that a salesperson's misconduct does not automatically implicate the employing broker, especially when the broker had no knowledge of the issues leading to the revocation of the salesperson's license. The intent behind this is to ensure that brokers are not penalized for actions beyond their control. By neither suspending nor revoking the broker's license, the commission maintains a fair and justifiable approach. It acknowledges that brokers should not bear the consequences of bad behavior by their salespeople if they were unaware of such behavior. This policy encourages brokers to continue conducting business without the fear of losing their licenses due to the unintended actions of their employees, as long as they are diligent in their oversight and management responsibilities.