Iowa Real Estate Practice Exam

What will the commission do if a salesperson who worked for a broker is not paid for a completed transaction after leaving the company?

1. Investigate the broker

2. Order the broker to pay

3. Do nothing

4. Find the transaction void

The correct answer is: Do nothing

In this scenario, the Real Estate Commission typically does not intervene in wage disputes between a salesperson and a broker regarding payment for completed transactions after the salesperson has left the company. The responsibility for resolving payment issues primarily lies between the salesperson and the broker, as it is an employment matter rather than a regulatory one. When a salesperson departs from a brokerage, any claims they may have regarding payment for commissions earned prior to their departure often require resolution through legal channels or contractual agreements, rather than direct action from the commission. The commission's role is generally to regulate licenses and ensure compliance with real estate laws, not to act as an arbiter in disputes over commissions or employment contracts. Therefore, in this context, the best understanding is that the commission will do nothing in response to a complaint from a former salesperson about unpaid commissions.