Iowa Real Estate Practice Exam

A person offered to help a neighbor sell her house before completing real estate pre-licensing. Can they sue for a commission if the sale occurred during their class?

1. Yes, if there’s a written agreement

2. No, unless they were licensed at the time

3. No, because they didn’t finish the class

4. Yes, as long as the commission is reasonable

The correct answer is: No, unless they were licensed at the time

The correct response hinges on the requirement that a person must be properly licensed to engage in real estate transactions, including earning commissions from sales. Real estate laws in Iowa, as in many states, dictate that anyone who facilitates the sale of real estate for compensation must possess an active real estate license at the time of the transaction. In this scenario, if the individual has not yet completed the pre-licensing course and has not obtained their license, they do not have the legal right to broker a sale or earn a commission from that transaction. Therefore, if the sale occurred while they were still in training and without the necessary licensing, they would not have a valid legal claim to sue for a commission. The other options do not apply because a written agreement does not override the requirement for a license, completion of the course alone does not grant the ability to earn commissions, and the reasonableness of the commission is irrelevant if the individual is not licensed at the time of the sale.