Under Iowa law, which of the following BEST describes a 'transactional broker' or 'facilitator' role in an Iowa real estate transaction?
Correct Answer
B) A licensee who assists both the buyer and seller with the transaction without representing either party as a fiduciary agent
A transactional broker (also called a facilitator or non-agent) in Iowa is a licensee who assists both parties in completing the transaction without establishing an agency relationship with either party. The facilitator does not owe traditional fiduciary duties such as loyalty or confidentiality to either the buyer or seller. Iowa Administrative Code 193E and Iowa Code Chapter 543B recognize this limited role, which must be disclosed to all parties. The facilitator still owes duties of honesty and cannot engage in fraud or misrepresentation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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