Iowa Real Estate Practice Exam

Which of the following individuals must possess a real estate broker's license?

1. A person managing rental properties

2. A person negotiating the sales of entire businesses

3. A person acting as a property maintenance technician

4. A person conducting open houses

The correct answer is: A person negotiating the sales of entire businesses

To understand why the correct answer is that a person negotiating the sales of entire businesses must possess a real estate broker's license, it is important to recognize the distinction between various roles and their requirements within real estate transactions. In Iowa, and generally in many jurisdictions, a real estate broker's license is required when individuals engage in the business of buying, selling, or negotiating real estate transactions for others. This includes not just residential or commercial property but also the sale of entire businesses that include real property as part of their assets. Negotiating the sale of a business often involves the transfer of real estate rights or property, which mandates that the individual has the requisite knowledge, training, and license to comply with legal and ethical standards. On the other hand, managing rental properties typically falls under the functions of property management, which can often be performed by property managers who may not require a broker's license depending on the scale and nature of their activities. Conducting open houses generally doesn’t require a broker's license if done under the supervision of a licensed agent or broker. Similarly, being a property maintenance technician involves hands-on physical work and does not require a real estate broker's license, as it does not engage in the transaction or negotiation of real estate. This context