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 of the following actions can lead to disciplinary action against a broker?

Providing referrals to other agencies
Failing to supervise salespersons adequately
Participating in charity events
Offering educational seminars

The correct answer is: Failing to supervise salespersons adequately

Failing to supervise salespersons adequately can lead to disciplinary action against a broker because it is a fundamental responsibility of a broker to ensure that their agents are operating within the law and adhering to ethical standards. Proper supervision ensures that salespersons are compliant with real estate regulations, follow ethical practices, and provide accurate information to clients. If a broker neglects this responsibility, it can result in illegal practices, misrepresentation, or unethical behavior by the salespersons, which could harm clients and damage the integrity of the real estate profession as a whole. Regulatory bodies expect brokers to maintain oversight to protect consumers and uphold industry standards, and a failure to do so may result in disciplinary measures, including fines or license suspension. Engaging in actions such as providing referrals to other agencies, participating in charity events, or offering educational seminars are generally acceptable practices that do not inherently lead to disciplinary action, as long as they comply with legal parameters and ethical standards.