When an Iowa broker closes their brokerage office, the salespersons affiliated with that broker must:
Correct Answer
B) Transfer their license to a new broker or place their license on inactive status
Under Iowa law, salespersons must be affiliated with a licensed broker in order to practice real estate. If their broker closes the brokerage, salespersons must either transfer their license to a new qualifying broker or place their license on inactive status until they find a new broker. They may not practice independently, automatically become brokers, or are not required to retake the exam.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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