Iowa Real Estate Practice Exam

What is the obligation of a broker or licensed salesperson when obtaining a listing?

1. Provide a copy of the listing agreement to the buyer

2. Give the seller a legible copy of the written listing agreement

3. Keep the agreement confidential

4. Ensure verbal agreement with the seller

The correct answer is: Give the seller a legible copy of the written listing agreement

The correct answer emphasizes that a broker or licensed salesperson is legally required to provide the seller with a legible copy of the written listing agreement. This requirement ensures transparency and helps maintain trust between the broker and the seller. By providing a copy, the seller has a clear understanding of the terms and conditions outlined in the agreement, including the duration of the listing, the broker's obligations, and the commission structure. This practice not only protects the seller's interests but also ensures compliance with real estate laws and regulations. In contrast, the other options do not fulfill the necessary obligations of a broker or salesperson. For instance, while confidentiality is important in real estate transactions, it does not supersede the requirement to provide the seller with a copy of the agreement. Similarly, while a verbal agreement can be a preliminary step, it lacks the formality and security of a written document, which is critical when dealing with real estate listings. Lastly, providing a copy of the agreement to a buyer is not an obligation of the broker concerning the listing agreement, as the buyer is not a party to that agreement. The focus should always be on ensuring that the seller receives a thorough documentation of their agreement with the broker.