Iowa Real Estate Practice Exam

What is a responsibility of a selling broker when handling the closing?

1. Appraise the property

2. Collect earnest money only

3. Ensure that all documents are signed and accounted for

4. Perform a final walkthrough

The correct answer is: Ensure that all documents are signed and accounted for

A selling broker has a crucial role during the closing process, primarily ensuring that the transaction proceeds smoothly. One of their key responsibilities is to ensure all documents are signed and accounted for. This includes collecting necessary paperwork such as the purchase agreement, disclosures, and any additional documents required to finalize the sale. This responsibility is essential because missing or unsigned documents can lead to complications, delays, or even the failure of the transaction. By taking charge of this aspect, the selling broker facilitates a successful closing, protecting their clients' interests and ensuring compliance with legal requirements. While other tasks like conducting an appraisal, collecting earnest money, and performing a final walkthrough can be part of the broader real estate process, they do not carry the same level of legal responsibility or necessity at the closing stage as ensuring all documents are properly executed and recorded.