Iowa Real Estate Practice Exam

When should a broker discuss agency during a listing presentation?

1. After the listing agreement is signed

2. At the time of specific assistance

3. During the preparation of marketing materials

4. At the first open house

The correct answer is: At the time of specific assistance

Discussing agency at the time of specific assistance is essential because it establishes the relationship and obligations between the broker and the client. During specific assistance, the broker is actively providing help and advice about the property, which is the ideal opportunity to clarify how the agency relationship works, including the duties owed to the client. This timing ensures that the client understands the broker's role, what to expect from the relationship, and the responsibilities the broker has, thus fostering trust and transparency. It also aligns with legal requirements to disclose agency relationships before significant assistance is provided, ensuring that the client is fully informed from the very beginning of the professional relationship. In contrast, discussing agency after the listing agreement is signed does not offer the client the opportunity to understand their relationship with the broker or the implications of the agency before they are committed to the agreement. Discussing it during the preparation of marketing materials or at an open house may not provide adequate context or details about the agency relationship, potentially leading to misunderstandings about the broker's role and the services being provided.