Iowa Real Estate Practice Exam

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Study for the Iowa Real Estate Exam. Utilize flashcards and multiple-choice questions, complete with hints and explanations for each query. Prepare effectively for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which action is not considered a breach of ethical practice in real estate?

Representing both parties without disclosure
Failing to inform the broker of significant activities
Honest communication regarding commissions
Soliciting business from other agents

The correct answer is: Honest communication regarding commissions

Honest communication regarding commissions is not considered a breach of ethical practice in real estate because transparency and honesty are fundamental principles in real estate transactions. Ethical practices in the industry emphasize the importance of clear and truthful communication with all parties involved, which includes accurately representing commission structures. When an agent communicates openly about commissions, they help foster trust and cooperation among clients, brokers, and other agents. In this context, the other actions listed—representing both parties without disclosure, failing to inform the broker of significant activities, and soliciting business from other agents—typically violate ethical standards. These actions might involve conflicts of interest, lack of transparency, or inadequate communication, all of which can undermine the integrity of real estate practices and potentially harm clients and the profession as a whole.