Iowa Real Estate Practice Exam

Which type of dispute will the Iowa Real Estate Commission NOT adjudicate?

1. Disputes over contract terms

2. Commissions between cooperating real estate firms

3. Disputes over property boundaries

4. Negotiation tactics

The correct answer is: Commissions between cooperating real estate firms

The Iowa Real Estate Commission primarily handles issues related to real estate licensing, disciplinary actions against real estate professionals, and matters directly involving real estate law and regulations. When it comes to disputes between cooperating real estate firms regarding commission splits, these are generally considered to be contractual disagreements. Such disputes fall under the category of business-to-business relationships and typically require arbitration or mediation between the firms involved, rather than intervention by a regulatory body like the Iowa Real Estate Commission. Disputes over contract terms can involve the interpretation and enforcement of real estate contracts, which the commission may adjudicate as they pertain to real estate transactions and professional conduct. Similarly, disputes over property boundaries require the assessment of property law and may involve legal actions that the commission recognizes. Negotiation tactics can involve issues of ethics and conduct in real estate transactions, which also could be within the commission’s purview if they relate to proper real estate practices. Thus, while the commission addresses various disputes in real estate, commission-related disagreements between firms are outside its scope.