Iowa Real Estate Practice Exam

In the context of appointed agents, which statement about agency disclosures is TRUE?

1. Additional disclosure is always required when different agents are involved

2. Only one agent needs to sign the disclosure

3. No additional disclosure is required if two appointed agents are involved

4. Disclosure is optional if the buyer is motivated

The correct answer is: No additional disclosure is required if two appointed agents are involved

In the context of appointed agents, the statement that no additional disclosure is required if two appointed agents are involved is accurate. When an agent is appointed to represent a buyer and another agent is appointed to represent a seller within the same brokerage, they are considered to be operating under the same agency relationship. Because both agents are representing different parties within the same brokerage, the initial disclosure made at the beginning of the relationship typically suffices. This ensures that both parties are informed of the agency relationships without the need for repeated disclosures, as the brokerage is already representing the interests of both clients. In this scenario, other statements may imply requirements that are not necessary under established agency law. For example, the notion that additional disclosure is always required when different agents are involved ignores the primary function of appointed agency within a single brokerage. Similarly, the assertion about only one agent needing to sign the disclosure does not reflect the standard practice of requiring all relevant parties to sign once disclosures are made—rather, both agents continue to work under the established relationship that does not necessitate additional disclosures for their engagement. Finally, the idea that disclosure is optional based on a buyer's motivation overlooks the fundamental legal requirements tied to agency disclosures, which are meant to protect all parties involved.