Iowa Real Estate Practice Exam

Which activity requires a personal assistant to have a real estate license in Iowa?

1. Marketing a property

2. Explaining simple contract documents to prospective buyers

3. Setting up property showings

4. Posting listings online

The correct answer is: Explaining simple contract documents to prospective buyers

In Iowa, explaining simple contract documents to prospective buyers is an activity that requires a personal assistant to have a real estate license. This is because explaining contract documents involves interpreting and conveying the implications of legal agreements, which falls under the scope of activities that licensed real estate professionals are trained to perform. The requirement for a license is rooted in the need for consumers to receive professional guidance in understanding their rights and obligations under real estate contracts, ensuring compliance with legal standards and protections. This activity can have significant repercussions for the parties involved, making it important that only licensed individuals undertake such responsibilities. In contrast, tasks like marketing a property, setting up property showings, and posting listings online are generally considered administrative or clerical in nature and can typically be performed by unlicensed assistants. These activities do not involve providing counsel or closely interacting with the legal documents related to real estate transactions, which is why they don't necessitate a real estate license.