The Iowa Real Estate Commission receives a complaint that broker Linda has been operating without maintaining a required trust account for earnest money deposits. During its investigation, the IREC finds probable cause to believe a violation has occurred. Which of the following actions may the IREC take at this stage, prior to a formal hearing?
Correct Answer
B) The IREC may issue a temporary cease and desist order and schedule a formal hearing to determine whether disciplinary action is warranted
Under Iowa Code Chapter 543B and Iowa Administrative Code 193E, the IREC has authority to issue temporary cease and desist orders when there is probable cause of a violation, while simultaneously scheduling a formal hearing to adjudicate the matter. This protects consumers during the investigative process without bypassing due process requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
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