An introductory 80-minute lesson for Iowa real estate licensing candidates covering IREC fundamentals, property classifications, physical/economic land characteristics, the legal boundary between real and personal property (chattel vs. fixtures), and Iowa agency relationships.
Situs is the dominant determinant of residential real estate values in Iowa cities.
Iowa Agency Law & Disclosures
05 / 06
Client
A principal represented by an agent via a written agreement. Owed exclusive OLDCAR fiduciary duties.
Agent works FOR them
Customer
An unrepresented party. Owed honesty, fair dealing, and accurate property disclosures.
Agent works WITH them
Dual Agency
Representing both sides in Iowa. Strictly illegal unless there is prior, written informed consent from both parties.
Consensual Dual Agency
Iowa Law: Agency disclosures must be signed BEFORE signing any transactional contract.
Fiduciary Duty Quick Drill
06 / 06
Iowa Exam Prep Scenario
"An Iowa seller's agent is told by their seller that the basement floods during heavy spring rains. The seller says, 'Keep that to yourself so we don't scare buyers.'"
Does obedience to the seller require the agent to stay silent about the flooding?
No! Disclosure of material property defects overrides the fiduciary duty of obedience.
IREC rule: Material adverse facts must be disclosed to customers even if the seller requests silence.
2. Broker Sarah represents both the seller and buyer in a Dubuque single-family sale. What is required in Iowa for this transaction to be legal?
[ ] Single Agency
[ ] Dual Agency
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Part 5: Iowa Licensing Exam Practice Items
1. An Iowa tenant farmer rents 160 acres of farmland. Before harvesting their corn, the land is sold to a new owner. What are the tenant's legal rights regarding the unharvested corn under the doctrine of emblements?
A The corn becomes the property of the new buyer as real property attached to the land. B The tenant farmer retains the personal property right to cultivate, harvest, and remove the crop. C The crop is immediately destroyed and split equally as a permanent agricultural easement. D The crop is classified as an appurtenance, requiring a new real property deed transfer.
2. Under Iowa licensing guidelines, when is a licensee representing a seller permitted to act as a dual agent?
A At any point, provided the agent informs the buyer verbally at the first open house showing. B Only when both buyer and seller provide prior, written informed consent to dual representation. C Immediately if the seller's property has been listed on the regional MLS for over 180 days. D Never, as dual agency is strictly outlawed by the Iowa Real Estate Commission (IREC).
3. Which of the following items on an Iowa homestead is most likely to be legally classified as personal property?
A A window air-conditioning unit plugged into an electrical outlet. B A custom mahogany deck built and attached to the back of the house. C Copper plumbing pipes run through the walls and flooring. D A newly planted perennial rose garden bordering the driveway.
