543B.1 LICENSE MANDATORY.
A person shall not, directly or indirectly, with the intention or
upon the promise of receiving any valuable consideration, offer,
attempt, agree to perform, or perform any single act as a real estate
broker whether as a part of a transaction or as an entire
transaction, or represent oneself as a real estate broker, broker
associate, or salesperson, without first obtaining a license and
otherwise complying with the requirements of this chapter. Section History: Early Form
[C31, 35, § 1905-c23; C39, § 1905.20; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.1; 81 Acts, ch 54, § 1] Section History: Recent Form
C93, § 543B.1
95 Acts, ch 170, §1
Referred to in § 543B.43, 543B.44, 543B.49
543B.2 INDIVIDUAL LICENSES NECESSARY.
A partnership, association, corporation, professional corporation,
or professional limited liability company shall not be granted a
license, unless every member or officer of the partnership,
association, corporation, professional corporation, or professional
limited liability company who actively participates in the brokerage
business of the partnership, association, corporation, professional
corporation, or professional limited liability company holds a
license as a real estate broker or salesperson, and unless every
employee who acts as a salesperson for the partnership, association,
corporation, professional corporation, or professional limited
liability company holds a license as a real estate broker or
salesperson. At least one member or officer of each partnership,
association, corporation, professional corporation, or professional
limited liability company shall be a real estate broker. Section History: Early Form
[C31, 35, § 1905-c24; C39, § 1905.21; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.2; 81 Acts, ch 54, § 2] Section History: Recent Form
C93, § 543B.2
2007 Acts, ch 13, §3
Referred to in § 543B.43
543B.3 BROKER -- DEFINITION.
As used in this chapter, "real estate broker" means a person
acting for another for a fee, commission, or other compensation or
promise, whether it be for all or part of a person's time, and who
engages directly or indirectly in any of the following acts:
1. Sells, exchanges, purchases, rents, or leases real estate.
2. Lists, offers, attempts, or agrees to list real estate for
sale, exchange, purchase, rent, or lease.
3. Advertises or holds oneself out as being engaged in the
business of selling, exchanging, purchasing, renting, leasing, or
managing real estate.
4. Negotiates, or offers, attempts, or agrees to negotiate, the
sale, exchange, purchase, rental, or lease of real estate.
5. Buys, sells, offers to buy or sell, or otherwise deals in
options on real estate or improvements on real estate.
6. Collects, or offers, attempts, or agrees to collect, rent for
the use of real estate.
7. Assists or directs in the procuring of prospects, intended to
result in the sale, exchange, purchase, rental, or leasing of real
estate.
8. Assists or directs in the negotiation of any transaction
intended to result in the sale, exchange, purchase, rental, or
leasing of real estate.
9. Prepares offers to purchase or purchase agreements, listing
contracts, agency disclosures, real property residential and
agricultural rental agreements, real property commercial rental
agreements of one year or less, and groundwater hazard statements,
including any modifications, amendments, or addendums to these
specific documents. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.3] Section History: Recent Form
C93, § 543B.3
95 Acts, ch 170, §2; 2002 Acts, ch 1031, §1
Referred to in § 543B.5, 543B.6, 543B.7, 543B.43
543B.4 REAL ESTATE -- DEFINITION.
As used in this chapter, "real estate" means real property
wherever situated, and includes any and all leaseholds or any other
interest or estate in land, and business opportunities which involve
any interest in real property. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.4] Section History: Recent Form
C93, § 543B.4
95 Acts, ch 170, §3
Referred to in § 543B.43
543B.5 OTHER DEFINITIONS.
As used in this chapter, unless the context otherwise requires:
1. "Agency" means a relationship in which a real estate
broker acts for or represents another by the other person's express
authority in a transaction.
2. "Agency agreement" means a written agreement between a
broker and a client which identifies the party the broker represents
in a transaction.
3. "Appointed agent" means that affiliated licensee who is
appointed by the designated broker of the affiliated licensee's real
estate brokerage agency to act solely for a client of that brokerage
agency to the exclusion of other affiliated licensees of that
brokerage agency.
4. "Branch office" means a real estate broker's office other
than a principal place of business.
5. "Broker associate" means a person who has a broker's
license but is licensed under, and employed by or otherwise
associated with, another broker as a salesperson.
6. "Brokerage" means the business or occupation of a real
estate broker.
7. "Brokerage agreement" means a contract between a broker
and a client which establishes the relationship between the parties
as to the brokerage services to be performed and contains the
provisions required in section 543B.56A.
8. "Brokerage services" means those activities identified in
sections 543B.3 and 543B.6.
9. "Client" means a party to a transaction who has an agency
agreement with a broker for brokerage services.
10. "Customer" means a consumer who is not being represented
by a licensee but for whom the licensee may perform ministerial acts.
11. "Designated broker" means a licensee designated by a real
estate brokerage agency to act for the agency in conducting real
estate brokerage services.
12. "Inactive license" means either a broker or salesperson
license certificate that is on file with the real estate commission
in the commission office and during which time the licensee is
precluded from engaging in any of the acts of this chapter.
13. "Licensee" means a broker or a salesperson licensed
pursuant to this chapter.
14. "Listing" is an agreement between a property owner and
another person in which that person holds or advertises the property
to the public as being available for sale or lease.
15. "Material adverse fact" means an adverse fact that a
party indicates is of such significance, or that is generally
recognized by a competent licensee as being of such significance to a
reasonable party, that it affects or would affect the party's
decision to enter into a contract or agreement concerning a
transaction, or affects or would affect the party's decision about
the terms of the contract or agreement.
For purposes of this subsection, "adverse fact" means a
condition or occurrence that is generally recognized by a competent
licensee as resulting in any of the following:
a. Significantly and adversely affecting the value of the
property.
b. Significantly reducing the structural integrity of
improvement to real estate.
c. Presenting a significant health risk to occupants of the
property.
16. "Negotiate" means to act as an intermediary between the
parties to a transaction, and includes any of the following acts:
a. Participating in the parties' discussion of the terms of a
contract or agreement concerning a transaction.
b. Completing, when requested by a party, appropriate forms
or other written record to document the party's proposal in a manner
consistent with the party's intent.
c. Presenting to a party the proposals of other parties to
the transaction and informing the party receiving a proposal of the
advantages and disadvantages of the proposal.
17. "Party" means a person seeking to sell, exchange, buy, or
rent an interest in real estate, a business, or a business
opportunity. "Party" includes a person who seeks to grant or
accept an option to buy, sell, or rent an interest in real estate.
18. "Person" means an individual, partnership, association,
corporation, professional corporation, or professional limited
liability company.
19. "Regular employee" means a person whose compensation is
fixed in advance, who does not receive a commission, who works
exclusively for the owner, and whose total compensation is subject to
state and federal withholding.
20. "Salesperson" means a person who is licensed under, and
employed by or otherwise associated with, a real estate broker, as a
selling, renting, or listing agent or representative of the broker.
21. "Transaction" means the sale, exchange, purchase, or
rental of, or the granting or acceptance of an option to sell,
exchange, purchase, or rent an interest in real estate. Section History: Early Form
[C31, 35, § 1905-c25; C39, § 1905.22; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.5; 81 Acts, ch 54, § 3] Section History: Recent Form
C93, § 543B.5
95 Acts, ch 17, §1; 95 Acts, ch 170, §4; 2005 Acts, ch 40, §1;
2006 Acts, ch 1055, §1; 2007 Acts, ch 13, §4
Referred to in § 543B.43
543B.6 ACTS CONSTITUTING DEALING IN REAL ESTATE.
A person who, for another, in consideration of compensation, by
fee, commission, salary, or otherwise, or with the intention or in
the expectation or upon the promise of receiving or collecting a fee,
does, offers or attempts or agrees to do, engages in or offers or
attempts or agrees to engage in, either directly or indirectly, any
single act or transaction contained in the definition of a real
estate broker as set out in section 543B.3, whether the act be an
incidental part of a transaction or the entire transaction is a real
estate broker or real estate salesperson within the meaning of this
chapter. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.6; 81
Acts, ch 54, § 4] Section History: Recent Form
C93, § 543B.6
Referred to in § 543B.5, 543B.7, 543B.43, 543B.46
543B.7 ACTS EXCLUDED FROM PROVISIONS.
The provisions of this chapter shall not apply to the sale,
exchange, purchase, rental, lease, or advertising of any real estate
in any of the following cases:
1. A person who, as owner, spouse of an owner, general partner of
a limited partnership, lessor, or prospective purchaser who does not
make repeated and successive transactions of a like character, or
through another engaged by such person on a regular full-time basis,
buys, sells, manages, or otherwise performs any act with reference to
property owned, rented, leased, or to be acquired by such person.
2. By any person acting as attorney in fact under a duly executed
and acknowledged power of attorney from the owner, to act on behalf
of the owner or lessor to authorize the final consummation and
execution of any contract for the sale, leasing, or exchange of real
estate. The exclusion in this subsection does not apply to a person
who, in the regular course of a business operated in the nature of a
property management or brokerage business, makes repeated and
successive transactions of a like character for compensation.
3. A licensed attorney admitted to practice in Iowa acting solely
as an incident to the practice of law.
4. A person acting as a receiver, trustee in bankruptcy,
administrator, executor, guardian, or while acting under court order
or under authority of a deed of trust, trust agreement, or will.
5. The acts of an auctioneer in conducting a public sale or
auction. The auctioneer's role must be limited to establishing the
time, place, and method of an auction; advertising the auction
including a brief description of the property for auction and the
time and place for the auction; and crying the property at the
auction. The auctioneer shall provide in any advertising the name
and address of the real estate broker who is providing brokerage
services for the transaction and the name of the real estate broker
or attorney who is responsible for closing the sale of the property.
The real estate broker providing brokerage services shall be present
at the time of the auction and, if found to be in violation of this
subsection, shall be subject to a civil penalty of two thousand five
hundred dollars. If the auctioneer closes or attempts to close the
sale of the property or otherwise engages in acts defined in sections
543B.3 and 543B.6, then the requirements of this chapter do apply to
the auctioneer. If an investigation pursuant to this chapter reveals
that an auctioneer has violated this subsection or has assumed to act
in the capacity of a real estate broker or real estate salesperson,
the real estate commission may issue a cease and desist order, and
shall issue a warning letter notifying the auctioneer of the
violation for the first offense, and impose a penalty of up to the
greater of ten thousand dollars or ten percent of the real estate
sales price for each subsequent violation.
6. An isolated real estate rental transaction by an owner's
representative on behalf of the owner; such transaction not being
made in the course of repeated and successive transactions of a like
character.
7. The sale of time-share uses as defined in section 557A.2.
8. A person acting as a resident manager when such resident
manager resides in the dwelling and is engaged in the leasing of real
property in connection with their employment.
9. An officer or employee of the federal government, state
government, or a political subdivision of the state, in the conduct
of the officer's or employee's official duties.
10. A person employed by a public or private utility who performs
an act with reference to property owned, leased, or to be acquired by
the utility employing that person, where such an act is performed in
the regular course of, or incident to, the management of the property
and the investment in the property.
11. A nonlicensed employee of a licensee who provides information
to another licensee concerning the sale, exchange, purchase, rental,
lease, or advertising of real estate which has been provided to the
employee by the employer licensee either verbally or in writing. Section History: Early Form
[C31, 35, § 1905-c26; C39, § 1905.23; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.7] Section History: Recent Form
83 Acts, ch 43, § 1; 85 Acts, ch 155, §21
C93, § 543B.7
95 Acts, ch 170, §5; 96 Acts, ch 1054, § 1; 99 Acts, ch 82, §1;
2001 Acts, ch 83, §1; 2004 Acts, ch 1018, §1; 2005 Acts, ch 101, §1;
2006 Acts, ch 1055, §2
Referred to in § 543B.34, 543B.43, 543C.6
543B.8 REAL ESTATE COMMISSION CREATED -- STAFF.
A real estate commission is created within the professional
licensing and regulation bureau of the banking division of the
department of commerce. The commission consists of five members
licensed under this chapter and two members not licensed under this
chapter and who shall represent the general public. At least one of
the licensed members shall be a licensed real estate salesperson,
except that if the licensed real estate salesperson becomes a
licensed real estate broker during a term of office, that person may
complete the term, but is not eligible for reappointment on the
commission as a licensed real estate salesperson. A licensed member
shall be actively engaged in the real estate business and shall have
been so engaged for five years preceding the appointment, the last
two of which shall have been in Iowa. Professional associations or
societies of real estate brokers or real estate salespersons may
recommend the names of potential commission members to the governor.
However, the governor is not bound by their recommendations. A
commission member shall not be required to be a member of any
professional association or society composed of real estate brokers
or salespersons. Commission members shall be appointed by the
governor subject to confirmation by the senate. Appointments shall
be for three-year terms and shall commence and end as provided in
section 69.19. A member shall serve no more than three terms or nine
years, whichever is less. No more than one member shall be appointed
from a county. A commission member shall not hold any other elective
or appointive state or federal office. Vacancies shall be filled for
the unexpired term by appointment of the governor and are subject to
senate confirmation. A majority of the commission members
constitutes a quorum. The administrator of the professional
licensing and regulation bureau of the banking division shall hire
and provide staff to assist the commission with implementing this
chapter.
The administrator of the professional licensing and regulation
bureau of the banking division of the department of commerce shall
hire a real estate education director to assist the commission in
administering education programs for the commission. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.8; 81
Acts, ch 54, § 5] Section History: Recent Form
86 Acts, ch 1245, § 722; 88 Acts, ch 1274, §36; 89 Acts, ch 292,
§1
C93, § 543B.8
2005 Acts, ch 41, §1; 2006 Acts, ch 1177, §38
Referred to in § 543B.43, 543B.49, 558A.1
Confirmation, see § 2.32
543B.9 RULES.
The real estate commission may adopt rules to carry out and
administer the provisions of this chapter. The commission may carry
on a program of education of real estate practices and matters
relating to real estate. The commission shall adopt rules necessary
to carry out the provisions of chapter 558A relating to the
disclosure of information before the transfer of real estate. Section History: Early Form
[C31, 35, § 1905-c33; C39, § 1905.30; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.9] Section History: Recent Form
C93, § 543B.9
93 Acts, ch 30, §1
Referred to in § 543B.43, 558A.4
543B.10 AND 543B.11 Reserved.
543B.12 EXPENSES OF MEMBERS -- COMPENSATION.
Members of the real estate commission are entitled to be
reimbursed for their actual expenses in the performance of duties
pertaining to their office within the limits of the funds
appropriated to the commission. Each member of the commission may
also be eligible to receive compensation as provided in section 7E.6.
Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.12] Section History: Recent Form
86 Acts, ch 1245, § 723
C93, § 543B.12
Referred to in § 543B.43
543B.13 SEAL -- RECORDS.
The real estate commission shall adopt a seal with such design as
the commission may prescribe engraved thereon, by which it shall
authenticate its proceedings. Copies of all records and papers in
the office of the commission, duly certified and authenticated by the
seal of said commission, shall be received in evidence in all courts
equally and with like effect as the original. All records kept in
the office of the commission under authority of this chapter shall be
open to public inspection under such reasonable rules and regulations
as shall be prescribed by the commission. Section History: Early Form
[C31, 35, § 1905-c28; C39, § 1905.25; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.13] Section History: Recent Form
C93, § 543B.13
Referred to in § 543B.43
543B.14 FEES AND EXPENSES -- FUNDS.
All fees and charges collected by the real estate commission under
this chapter shall be paid into the general fund of the state, except
that fifty dollars from each real estate salesperson's license and
each broker's license shall be paid into the Iowa real estate
education fund created in section 543B.54. All expenses incurred by
the commission under this chapter, including compensation of staff
assigned to the commission, shall be paid from funds appropriated for
those purposes, except for expenses incurred and compensation paid
for the real estate education director, which shall be paid out of
the real estate education fund. Section History: Early Form
[C31, 35, § 1905-c29; C39, § 1905.26; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.14] Section History: Recent Form
86 Acts, ch 1245, § 724; 89 Acts, ch 292, § 2; 90 Acts, ch 1168, §
19; 90 Acts, ch 1261, § 38; 92 Acts, ch 1070, § 1
C93, § 543B.14
94 Acts, ch 1107, §89; 2004 Acts, ch 1175, §29
Referred to in § 543B.43
543B.15 QUALIFICATIONS.
1. Except as provided in section 543B.20 an applicant for a real
estate broker's or salesperson's license must be a person whose
application has not been rejected for licensure in this or any other
state within twelve months prior to the date of application, and
whose real estate license has not been revoked in this or any other
state within two years prior to date of application.
2. To qualify for a license as a real estate broker or
salesperson a person shall be eighteen years of age or over.
However, an applicant is not ineligible because of citizenship, sex,
race, religion, marital status, or national origin, although the
application form may require citizenship information.
3. a. An applicant for a real estate broker's or
salesperson's license who has been convicted of an offense specified
in this subsection shall not be considered for licensure until the
following time periods have elapsed following completion of any
applicable period of incarceration, or payment of a fine or
fulfillment of any other type of sentence:
(1) For an offense which is classified as a felony, two years.
(2) Notwithstanding subparagraph (1), for offenses including or
involving forgery, embezzlement, obtaining money under false
pretenses, theft, arson, extortion, conspiracy to defraud, or other
similar offense, any offense involving moral turpitude, or other
offense involving a criminal breach of fiduciary duty, five years.
b. After expiration of the time periods specified in
paragraph "a", an application shall be considered by the
commission pursuant to subsection 7 and may be denied on the grounds
of the conviction. An applicant may request a hearing pursuant to
section 543B.19 in the event of a denial.
c. For purposes of this section, "convicted" means a
guilty plea, deferred judgment from the time of entry of the deferred
judgment until the time the defendant is discharged by the court
without entry of judgment, or other finding of guilt by a court of
competent jurisdiction in this state, or in any other state,
territory, or district of the United States, or in any foreign
jurisdiction.
4. An applicant for a real estate broker's or salesperson's
license who has had a professional license of any kind revoked or
suspended or who has had any other form of discipline imposed, in
this or any other jurisdiction, may be denied a license by the
commission on the grounds of the revocation, suspension, or other
discipline.
5. A person who makes a false statement of material fact on an
application for a real estate broker's or salesperson's license, or
who causes to be submitted, or has been a party to preparing or
submitting any false application for such license, may be denied a
license by the commission on the grounds of the false statement or
submission. A licensee found to have made such a statement or who
caused to be submitted, or was a party to preparing or submitting any
false application for a real estate broker's or salesperson's
license, may have the license suspended or revoked by the commission
on the grounds of the false statement or submission.
6. A licensed real estate broker or salesperson shall notify the
commission of the licensee's conviction of an offense included in
subsection 3 within ten days of the conviction. Notification of a
conviction for an offense which is classified as a felony shall
result in the immediate suspension of a license pending the outcome
of a hearing conducted pursuant to section 543B.35. The failure of
the licensee to notify the commission of the conviction within ten
days of the date of the conviction is sufficient grounds for
revocation of the license.
7. The commission, when considering the denial or revocation of a
license pursuant to this section, shall consider the nature of the
offense; any aggravating or extenuating circumstances which are
documented; the time lapsed since the revocation, conduct, or
conviction; the rehabilitation, treatment, or restitution performed
by the applicant or licensee; and any other factors the commission
deems relevant. Character references may be required but shall not
be obtained from licensed real estate brokers or salespersons.
8. To qualify for a license as a real estate broker, a person
shall complete at least sixty contact hours of commission approved
real estate education within twenty-four months prior to taking the
broker examination. This education shall be in addition to the
required salesperson prelicense course. The applicant shall have
been a licensed real estate salesperson actively engaged in real
estate for a period of at least twenty-four months preceding the date
of application, or shall have had experience substantially equal to
that which a licensed real estate salesperson would ordinarily
receive during a period of twenty-four months, whether as a former
broker or salesperson, a manager of real estate, or otherwise.
9. A qualified applicant for a license as a real estate
salesperson shall complete a commission approved short course in real
estate education of at least thirty hours during the twelve months
prior to taking the salesperson examination.
10. An applicant for an initial real estate broker's or
salesperson's license shall be subject to a national criminal history
check through the federal bureau of investigation. The commission
shall request the criminal history check and shall provide the
applicant's fingerprints to the department of public safety for
submission through the state criminal history repository to the
federal bureau of investigation. The applicant shall authorize
release of the results of the criminal history check to the real
estate commission. The applicant shall pay the actual cost of the
fingerprinting and criminal history check, if any. Unless the
criminal history check was completed within the two hundred ten
calendar days prior to the date the license application is received
by the real estate commission, the commission shall reject and return
the application to the applicant. The commission shall process the
application but hold delivery of the license until the background
check is complete. The results of a criminal history check conducted
pursuant to this subsection shall not be considered a public record
under chapter 22. Section History: Early Form
[C31, 35, § 1905-c30; C39, § 1905.27; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.15; 81 Acts, ch 54, § 6, 7] Section History: Recent Form
85 Acts, ch 82, §1
C93, § 543B.15
95 Acts, ch 64, §1; 2002 Acts, ch 1031, §2; 2005 Acts, ch 36, §1;
2006 Acts, ch 1055, §3; 2007 Acts, ch 187, §1, 2; 2008 Acts, ch 1099,
§1, 2
Referred to in § 543B.28, 543B.29, 543B.43
543B.16 APPLICATION FORMS.
Every applicant for a real estate broker's license shall apply in
writing upon blanks prepared or furnished by the real estate
commission. The real estate commission shall not require that a
recent photograph of the applicant be attached to the application.
Every applicant for a license shall furnish information setting
forth the applicant's present address, both of business and
residence, a complete list of all former places where the applicant
may have been engaged in business for a period of sixty days or more,
during the last five years, accounting for such entire period.
The commission shall prepare and furnish written application
blanks for the salesperson's license requesting information as the
commission may require. The commission shall not require that a
recent photograph of the applicant be attached to the application.
The application for the salesperson's license shall be accompanied by
a written statement by the broker whose service the applicant is
about to enter recommending that the license be granted to the
applicant. Section History: Early Form
[C31, 35, § 1905-c31; C39, § 1905.28; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.16; 81 Acts, ch 54, § 8] Section History: Recent Form
C93, § 543B.16
Referred to in § 543B.43
543B.17 Reserved.
543B.18 ENFORCEMENT OF RULES.
The real estate commission is expressly vested with the power and
authority to make and enforce any and all such reasonable rules
connected with the application for any license as shall be deemed
necessary to administer and enforce the provisions of this chapter.
Section History: Early Form
[C31, 35, § 1905-c33; C39, § 1905.30; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.18] Section History: Recent Form
C93, § 543B.18
Referred to in § 543B.43
543B.19 LICENSE DENIED -- HEARING.
If the real estate commission, after an application in proper form
has been filed with it, accompanied by the proper fee, shall deny a
license to the applicant, upon the applicant's application in
writing, and within a period of thirty days of such denial, the
applicant shall be entitled to a hearing as provided in section
543B.35. Section History: Early Form
[C31, 35, § 1905-c34; C39, § 1905.31; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.19] Section History: Recent Form
C93, § 543B.19
Referred to in § 543B.15, 543B.35, 543B.43
543B.20 WRITTEN EXAMINATION.
Examinations for registration shall be given as often as deemed
necessary by the real estate commission, but no less than one time
per year. Each applicant for a license must pass a written
examination authorized by the commission and administered by the
commission or persons designated by the commission. The examination
shall be of scope and wording sufficient in the judgment of the
commission to establish the competency of the applicant to act as a
real estate broker or salesperson in a manner to protect the
interests of the public. An examination for a real estate broker
shall be of a more exacting nature than that for a real estate
salesperson and require higher standards of knowledge of real estate.
All examinations in real estate theory shall be in writing and the
identity of the persons taking the examinations shall be concealed
until after the examination papers have been graded. For
examinations in practice, the identity of the persons taking the
examinations shall also be concealed as far as possible. A person
who fails to pass either written examination once may immediately
apply to take the next available examination. Thereafter, the
applicant may take the examination at the discretion of the
commission. An applicant who has failed either examination may
request in writing information from the commission concerning the
applicant's examination grade and subject areas or questions which
the applicant failed to answer correctly, except that if the
commission administers a uniform, standardized examination, the
commission is only required to provide the examination grade and
other information concerning the applicant's examination results
which is available to the commission. Section History: Early Form
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, § 117.20; 81
Acts, ch 54, § 9] Section History: Recent Form
C93, § 543B.20
Referred to in § 538A.2, 543B.15, 543B.43
543B.21 NONRESIDENT LICENSE.
A nonresident of this state may be licensed as a real estate
broker or a real estate salesperson, upon complying with all
requirements of law and with all the provisions and conditions of
this chapter relative to resident brokers or salespersons and the
filing by the applicant with the real estate commission of a
certification from the state of original licensure signed by the duly
qualified and authorized official or officials of that state that the
applicant is there currently licensed, that no charges against the
applicant are there pending, and that applicant's record in that
state justifies the issuance of a license to the applicant in Iowa.
The commission may waive the requirement of an examination in the
case of a nonresident broker who is licensed under the laws of a
state having similar requirements and where similar recognition and
courtesies are extended to licensed real estate brokers and
salespersons of this state. Section History: Early Form
[C31, 35, § 1905-c57; C39, § 1905.54; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.21; 81 Acts, ch 54, § 10] Section History: Recent Form
C93, § 543B.21
Referred to in § 543B.43
543B.22 NONRESIDENT'S PLACE OF BUSINESS.
A nonresident to whom a license is issued upon compliance with all
the other requirements of law and provisions of this chapter, is not
required to maintain a definite place of business within this state.
Provided that the nonresident, if a broker, shall maintain an active
place of business within the state of the nonresident's domicile, and
that the privilege of submitting a certification of licensure
certified to by the qualified and authorized official or officials of
the state of original licensure, in lieu of the recommendations and
statements otherwise required, only applies to licensed real estate
brokers and real estate salespersons of those states under the laws
of which similar recognition and courtesies are extended to licensed
real estate brokers and real estate salespersons of this state. Section History: Early Form
[C31, 35, § 1905-c57; C39, § 1905.54; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.22; 81 Acts, ch 54, § 11] Section History: Recent Form
C93, § 543B.22
Referred to in § 543B.31, 543B.43
543B.23 ACTIONS AGAINST NONRESIDENTS.
Every nonresident applicant, before the issuance of a license,
shall file an irrevocable consent that suits and actions may be
commenced against such applicant in the proper court of any county of
this state in which a cause of action may arise, by the service of
any process or pleadings authorized by the laws of this state on the
chairperson of the real estate commission, said consent stipulating
and agreeing that such service of such process or pleadings on the
commission shall be taken and held in all courts to be as valid and
binding as if due service had been made upon said applicant within
the state of Iowa. Said instrument containing such consent shall be
authenticated by the seal thereof, if a corporation, or by the
acknowledged signature of a member or officer thereof, if otherwise.
All such applications, except from individuals, shall be accompanied
by a duly certified copy of the resolutions of the proper officers,
or managing board, authorizing the proper officer to execute the
same. In case any process or pleadings mentioned in the case are
served upon the commission it shall be by duplicate copies, one of
which shall be filed in the office of the commission, and the other
immediately forwarded by certified mail to the main office of the
applicant against whom or which said process or pleadings are
directed. Section History: Early Form
[C31, 35, § 1905-c57; C39, § 1905.54; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.23] Section History: Recent Form
C93, § 543B.23
Referred to in § 543B.43
543B.24 CUSTODY OF SALESPERSON'S LICENSE.
The license of a real estate salesperson shall be delivered or
mailed to the real estate broker by whom the real estate salesperson
is employed and shall be kept in the custody and control of the
broker. Section History: Early Form
[C31, 35, § 1905-c36; C39, § 1905.33; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.24; 81 Acts, ch 54, § 12] Section History: Recent Form
C93, § 543B.24
Referred to in § 543B.43
543B.25 DISPLAY OF LICENSE.
A real estate broker shall conspicuously display in the broker's
place of business the current real estate broker's license issued to
the broker and the licenses issued to the broker's employees. Section History: Early Form
[C31, 35, § 1905-c37; C39, § 1905.34; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.25; 81 Acts, ch 54, § 13] Section History: Recent Form
C93, § 543B.25
Referred to in § 543B.43
543B.26 Reserved.
543B.27 FEES.
1. The real estate commission shall set fees for examination and
licensing of real estate brokers and real estate salespersons. The
commission shall determine the annual cost of administering the
examination and shall set the examination fee accordingly. The
commission shall set the fees for the real estate broker's licenses
and for real estate salesperson's licenses based upon the
administrative costs of sustaining the commission. The fees shall
include, but shall not be limited to, the costs for:
a. Per diem, expenses, and travel for commission members.
b. Office facilities, supplies, and equipment.
c. Staff assistance.
d. Establishing and maintaining a real estate education
program.
2. Notwithstanding subsection 1, a nonresident person seeking to
procure a license pursuant to this chapter shall be charged a fee
equal to the greater of the following:
a. The fee as determined pursuant to subsection 1.
b. A fee equal to the fee the nonresident person would be
charged by such person's state of residence if that person were a
resident of this state making application for a license in that state
and that state charges a nonresident a fee which is greater than that
charged by that state to a resident of that state. Section History: Early Form
[C31, 35, § 1905-c40; C39, § 1905.37; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.27; 81 Acts, ch 54, § 14] Section History: Recent Form
89 Acts, ch 292, §3; 90 Acts, ch 1168, § 20
C93, § 543B.27
95 Acts, ch 36, §1
Referred to in § 543B.43
543B.28 EXPIRATION OF LICENSE.
Every license shall expire in multiyear intervals as determined by
the real estate commission. A person who fails to renew a real
estate broker's or real estate salesperson's license by the
expiration date shall be allowed to do so within thirty days
following its expiration, but the commission may assess a reasonable
penalty. The commission upon the written request of the applicant on
forms prescribed by the commission, and payment of the fee, shall
issue a new license for each ensuing license period except as
provided in section 543B.15, in the absence of any reason or
condition which might warrant the revocation of a license after a
hearing as provided in sections 543B.34 and 543B.35. Section History: Early Form
[C31, 35, § 1905-c42; C39, § 1905.39; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.28; 81 Acts, ch 54, § 15] Section History: Recent Form
C93, § 543B.28
Referred to in § 543B.43, 543B.47, 543B.53
543B.29 REVOCATION OR SUSPENSION.
1. A license to practice the profession of real estate broker and
salesperson may be revoked or suspended when the licensee is guilty
of any of the following acts or offenses:
a. Fraud in procuring a license.
b. Professional incompetency.
c. Knowingly making misleading, deceptive, untrue, or
fraudulent representations in the practice of the profession or
engaging in unethical conduct or practice harmful or detrimental to
the public. Proof of actual injury need not be established.
d. Habitual intoxication or addiction to the use of drugs.
e. Conviction of an offense included in section 543B.15,
subsection 3. For purposes of this section, "conviction" means a
conviction for an indictable offense and includes a guilty plea,
deferred judgment from the time of entry of the deferred judgment
until the time the defendant is discharged by the court without entry
of judgment, or other finding of guilt by a court of competent
jurisdiction. A copy of the record of conviction, guilty plea,
deferred judgment, or other finding of guilt is conclusive evidence.
f. Fraud in representations as to skill or ability.
g. Use of untruthful or improbable statements in
advertisements.
h. Willful or repeated violations of the provisions of this
chapter.
i. Noncompliance with insurance requirements under section
543B.47.
j. Noncompliance with the trust account requirements under
section 543B.46.
k. Revocation of any professional license held by the
licensee in this or any other jurisdiction.
2. The revocation of a broker's license shall automatically
suspend every license granted to any person by virtue of the person's
employment by the broker whose license has been revoked, pending a
change of employer and the issuance of a new license. The new
license shall be issued upon payment of a fee in an amount determined
by the commission based upon the administrative costs involved, if
granted during the same license period in which the original license
was granted.
3. A real estate broker or salesperson who is an owner or lessor
of property or an employee of an owner or lessor may have the
broker's or salesperson's license revoked or suspended for violations
of this section or section 543B.34, except subsections 4, 5, 6 and 9,
with respect to that property.
4. A real estate broker's or salesperson's license shall be
revoked following three violations of this section or section 543B.34
within a three-year period. Section History: Early Form
[C31, 35, § 1905-c43; C39, § 1905.40; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.29; 81 Acts, ch 54, § 16, 17] Section History: Recent Form
83 Acts, ch 101, § 14; 90 Acts, ch 1126, § 1; 92 Acts, ch 1242, §
20
C93, § 543B.29
95 Acts, ch 64, §2, 3; 2008 Acts, ch 1099, §3
Referred to in § 272C.3, 272C.4, 543B.43, 543B.60A
543B.30 ACTIONS -- LICENSE AS PREREQUISITE.
A person engaged in the business or acting in the capacity of a
real estate broker or a real estate salesperson within this state
shall not bring or maintain any action in the courts of this state
for the collection of compensation for services performed as a real
estate broker or salesperson without alleging and proving that the
person was a duly licensed real estate broker or real estate
salesperson at the time the alleged cause of action arose. Section History: Early Form
[C31, 35, § 1905-c44; C39, § 1905.41; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.30; 81 Acts, ch 54, § 18] Section History: Recent Form
C93, § 543B.30
Referred to in § 543B.43
543B.31 PLACE OF BUSINESS.
Every real estate broker, except as provided in section 543B.22,
shall maintain a place of business in this state. If the real estate
broker maintains more than one place of business within the state, a
duplicate license shall be issued to such broker for each branch
office maintained. Provided, that if such broker be a partnership,
association, corporation, professional corporation, or professional
limited liability company a duplicate shall be issued to the members
or officers thereof, and a fee determined by the real estate
commission in each case shall be paid for each duplicate license. Section History: Early Form
[C31, 35, § 1905-c45; C39, § 1905.42; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.31] Section History: Recent Form
C93, § 543B.31
2007 Acts, ch 13, §5; 2008 Acts, ch 1032, §106
Referred to in § 543B.43
543B.32 CHANGE OF LOCATION.
Notice in writing shall be given to the real estate commission by
each licensee of any change of principal business location, whereupon
the commission shall issue a new license for the unexpired period
upon the payment of a fee established by rule to cover the cost of
issuing the license. Section History: Early Form
[C31, 35, § 1905-c46; C39, § 1905.43; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.32; 81 Acts, ch 54, § 19] Section History: Recent Form
C93, § 543B.32
Referred to in § 543B.43
543B.33 SALESPERSONS -- CHANGE OF EMPLOYMENT.
When any real estate salesperson is discharged or terminates
employment with the real estate broker by whom the salesperson is
employed, the real estate broker shall immediately deliver or mail by
certified mail to the real estate commission the real estate
salesperson's license on the reverse side of which the employing
broker shall set out the date and cause of termination of employment.
The real estate broker at the time of mailing the real estate
salesperson's license to the commission shall address a communication
to the last known residence address of the real estate salesperson
stating that the license has been delivered or mailed to the
commission. A copy of the communication to the real estate
salesperson shall accompany the license when mailed or delivered to
the commission. It is unlawful for any real estate salesperson to
perform any of the acts contemplated by this chapter either directly
or indirectly under authority of a license from and after the date of
receipt of the license by the commission. The commission shall, upon
presentation of evidence by the salesperson that the salesperson has
been employed by another broker, issue another license for the
balance of the current license period showing each change of
employment. A fee as determined by the commission shall be charged
for the issuance of the license. Not more than one license shall be
issued to any real estate salesperson for the same period of time.
Section History: Early Form
[C31, 35, § 1905-c47; C39, § 1905.44; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.33; 81 Acts, ch 54, § 20] Section History: Recent Form
C93, § 543B.33
Referred to in § 543B.43
543B.34 INVESTIGATIONS BY COMMISSION -- LICENSING
SANCTIONS -- CIVIL PENALTY.
The real estate commission may upon its own motion and shall upon
the verified complaint in writing of any person, if the complaint
together with evidence, documentary or otherwise, presented in
connection with the complaint makes out a prima facie case, request
commission staff or any other duly authorized representative or
designee to investigate the actions of any real estate broker, real
estate salesperson, or other person who assumes to act in either
capacity within this state, and may suspend or revoke a license
issued under this chapter at any time if the licensee has by false or
fraudulent representation obtained a license, or if the licensee or
other person assuming to act in the capacity of a real estate broker
or real estate salesperson, except for those actions exempt pursuant
to section 543B.7, is found to be guilty of any of the following:
1. Making any substantial misrepresentation.
2. Making any false promise of a character likely to influence,
persuade or induce.
3. Pursuing a continued and flagrant course of misrepresentation,
or making of false promises through agents or salespersons or
advertising or otherwise.
4. Acting for more than one party in a transaction without the
knowledge of all parties for whom the licensee acts.
5. Accepting a commission or valuable consideration as a real
estate broker associate or salesperson for the performance of any of
the acts specified in this chapter, from any person, except the
broker associate's or salesperson's employer, who must be a licensed
real estate broker. However, a broker associate or salesperson may,
without violating this subsection, accept a commission or valuable
consideration from a corporation which is wholly owned, or owned with
a spouse, by the broker associate or salesperson if the conditions
described in subsection 9 are met.
6. Representing or attempting to represent a real estate broker
other than the licensee's employer, without the express knowledge and
consent of the employer.
7. Failing, within a reasonable time, to account for or to remit
any moneys coming into the licensee's possession which belong to
others.
8. Being unworthy or incompetent to act as a real estate broker
or salesperson in such manner as to safeguard the interests of the
public.
9. a. Paying a commission or other valuable consideration or
any part of such commission or consideration for performing any of
the acts specified in this chapter to a person who is not a licensed
broker or salesperson under this chapter or who is not engaged in the
real estate business in another state or foreign country, provided
that the provisions of this section shall not be construed to
prohibit the payment of earned commissions or consideration to any of
the following:
(1) The estate or heirs of a deceased real estate licensee when
such licensee had a valid real estate license in effect at the time
the commission or consideration was earned.
(2) A citizen of another country acting as a referral agent if
that country does not license real estate brokers and if the Iowa
licensee paying the commission or consideration obtains and maintains
reasonable written evidence that the payee is a citizen of the other
country, is not a resident of this country, and is in the business of
brokering real estate in that other country.
(3) A corporation pursuant to paragraph "b".
b. A broker may pay a commission to a corporation which is
wholly owned, or owned with a spouse, by a salesperson or broker
associate employed by or otherwise associated with the broker, if all
of the following conditions are met:
(1) The corporation does not engage in real estate transactions
as a third-party agent or in any other activity requiring a license
under this chapter.
(2) The employing broker is not relieved of any obligation to
supervise the employed licensee or any other requirement of this
chapter or the rules adopted pursuant to this chapter.
(3) The employed broker associate or salesperson is not relieved
from any personal civil liability for any licensed activities by
interposing the corporate form.
10. Failing, within a reasonable time, to provide information
requested by the commission as the result of a formal or informal
complaint to the commission which would indicate a violation of this
chapter.
11. Any other conduct, whether of the same or different character
from that specified in this section, which demonstrates bad faith, or
improper, fraudulent, or dishonest dealings which would have
disqualified the licensee from securing a license under this chapter.
Any unlawful act or violation of any of the provisions of this
chapter by any real estate broker associate or salesperson, employee,
or partner or associate of a licensed real estate broker, is not
cause for the revocation of the license of any real estate broker,
unless the commission finds that the real estate broker had guilty
knowledge of the unlawful act or violation.
If an investigation pursuant to this section reveals that an
unlicensed person has assumed to act in the capacity of a real estate
broker or real estate salesperson, the commission may issue a cease
and desist order, and may impose a civil penalty of up to the greater
of ten thousand dollars or ten percent of the real estate sale price.
Section History: Early Form
[C31, 35, § 1905-c48; C39, § 1905.45; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.34; 81 Acts, ch 54, § 21] Section History: Recent Form
88 Acts, ch 1158, § 23; 89 Acts, ch 29, § 1; 89 Acts, ch 83, § 24;
92 Acts, ch 1242, § 21
C93, § 543B.34
95 Acts, ch 170, §6; 99 Acts, ch 22, §1; 2004 Acts, ch 1005, §1,
2; 2005 Acts, ch 179, §72
Referred to in § 543B.28, 543B.29, 543B.43, 543B.61
543B.35 HEARING ON CHARGES.
The real estate commission shall, upon request of the applicant as
provided in section 543B.19, or before revoking any license, set the
matter down for a hearing and at least twenty days prior to the date
set for the hearing it shall notify the applicant or licensee in
writing, which said notice shall contain an exact statement of the
charges made and the date and place of the hearing. The applicant or
licensee at all such hearings shall have the opportunity to be heard
in person and by counsel in reference thereto. Such written notice
of hearing may be served by delivery personally to the applicant or
licensee or by mailing the same by certified mail to the last known
business address of such applicant or licensee. If such applicant or
licensee be a salesperson, the commission shall also notify the
broker employing the salesperson or into whose employ the salesperson
is about to enter by mailing such notice by certified mail to the
broker's last known business address. The hearing on such charges
shall be at such time and place as the commission shall prescribe.
Section History: Early Form
[C31, 35, § 1905-c49; C39, § 1905.46; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.35] Section History: Recent Form
C93, § 543B.35
Referred to in § 272C.5, 543B.15, 543B.19, 543B.28, 543B.43
543B.36 ATTENDANCE OF WITNESSES.
In the preparation and conducting of such hearings, the real
estate commission shall have power to execute and sign subpoenas to
require the attendance and testimony of any witnesses and the
producing of any papers or books. The commission may administer
oaths, examine witnesses, and take any evidence the commission deems
pertinent to the determination of the charges. Any such hearing may
be held before two or more members of the commission as may be
directed by the commission. Section History: Early Form
[C31, 35, § 1905-c50; C39, § 1905.47; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.36] Section History: Recent Form
C93, § 543B.36
Referred to in § 272C.5, 543B.43
543B.37 FEES AND MILEAGE.
Any witnesses so subpoenaed shall be entitled to the same fees and
mileage as is prescribed by law in judicial proceedings in the courts
of this state in civil cases. Section History: Early Form
[C31, 35, § 1905-c51; C39, § 1905.48; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.37] Section History: Recent Form
C93, § 543B.37
Referred to in § 543B.43
543B.38 REQUEST FOR WITNESSES.
Any party to any hearing before the real estate commission shall
have the right to the attendance of witnesses in the party's behalf
at such a hearing upon making a request thereof to the commission and
designating the person or persons sought to be subpoenaed. Section History: Early Form
[C31, 35, § 1905-c52; C39, § 1905.49; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.38] Section History: Recent Form
C93, § 543B.38
Referred to in § 543B.43
543B.39 DISOBEDIENCE TO SUBPOENA.
In case of a disobedience to a subpoena the real estate commission
may invoke the aid of any court of competent jurisdiction or judge
thereof in requiring the attendance and testimony of witnesses and
the production of papers; and such court may issue an order requiring
the persons to appear before the commission and give evidence or to
produce papers as the case may be; and any failure to obey such order
may be punished as a contempt. Section History: Early Form
[C31, 35, § 1905-c53; C39, § 1905.50; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.39] Section History: Recent Form
C93, § 543B.39
Referred to in § 543B.43
543B.40 DEPOSITIONS.
The testimony may be taken by deposition as in civil cases, and
any person may be compelled to appear and depose in the same manner
as witnesses may be compelled to appear and testify as hereinbefore
provided. Section History: Early Form
[C31, 35, § 1905-c54; C39, § 1905.51; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.40] Section History: Recent Form
C93, § 543B.40
Referred to in § 543B.43
543B.41 FINDINGS OF FACT.
If the majority of the real estate commission shall determine that
any applicant is not qualified to receive a license, a license shall
not be granted to such applicant, and if the commission shall
determine that any licensee is guilty of a violation of any of the
provisions of this chapter, the license may be suspended or revoked.
The commission, upon request of the applicant or licensee, shall
furnish said applicant or licensee with a definite statement of its
findings of fact and its reason or reasons for refusing to grant the
license or for suspension of the rights of the licensee or for the
revocation of the license, as the case may be. Judicial review of
action of the commission may be sought in accordance with the terms
of the Iowa administrative procedure Act, chapter 17A. Section History: Early Form
[C31, 35, § 1905-c56; C39, § 1905.53; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.41] Section History: Recent Form
C93, § 543B.41
2003 Acts, ch 44, §114
Referred to in § 543B.43
543B.42 LIST OF LICENSEES.
The real estate commission shall at least annually prepare a list
of the names and addresses of all licensees licensed by it under this
chapter, and of all persons whose licenses have been suspended or
revoked within one year; together with other information relative to
the enforcement of this chapter as it deems of interest to the
public. The lists shall be mailed by the commission to any person in
this state upon request. Section History: Early Form
[C31, 35, § 1905-c58; C39, § 1905.55; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.42] Section History: Recent Form
86 Acts, ch 1238, § 6
C93, § 543B.42
Referred to in § 543B.43
543B.43 PENALTIES.
Any person found guilty of violating a provision of sections
543B.1 to 543B.42 in a first offense shall be guilty of a simple
misdemeanor. Section History: Early Form
[C31, 35, § 1905-c59; C39, § 1905.56; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.43] Section History: Recent Form
C93, § 543B.43
Referred to in § 543B.49
Civil penalty for unlicensed person acting as real estate broker
or salesperson; §543B.34
Civil penalty for licensees; §543B.48
543B.44 COMPLAINTS REFERRED TO COURT.
The real estate commission may refer a complaint for violation of
section 543B.1 before any court of competent jurisdiction, and it may
take the necessary legal steps through the proper legal officers of
this state to enforce the provisions hereof and collect the penalties
herein provided. Section History: Early Form
[C31, 35, § 1905-c60; C39, § 1905.57; C46, 50, 54, 58, 62, 66,
71, 73, 75, 77, 79, 81, § 117.44] Section History: Recent Form
C93, § 543B.44
Referred to in § 543B.49
543B.45 DUAL CONTRACTS FOR SALE OF REAL PROPERTY.
A person licensed under this chapter shall not knowingly make,
issue, deliver, receive, or permit the use of two or more written or
oral contracts for the purpose of sale concerning the same parcel of
real estate one of which is not made known to the prospective lender
or loan guarantor to enable the purchaser to obtain a larger loan
than the true sales price would allow or to enable the purchaser to
qualify for a loan which the purchaser otherwise could not obtain.
Any person who shall violate the provisions of this section shall
be guilty of a fraudulent practice. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 117.45; 81 Acts, ch 54, § 22] Section History: Recent Form
C93, § 543B.45
543B.46 TRUST ACCOUNTS.
1. Each real estate broker shall maintain a common trust account
in a bank, a savings and loan association, savings bank, or credit
union for the deposit of all down payments, earnest money deposits,
or other trust funds received by the broker or the broker's
salespersons on behalf of the broker's principal, except that a
broker acting as a salesperson shall deposit these funds in the
common trust account of the broker for whom the broker acts as
salesperson. The account shall be an interest-bearing account. The
interest on the account shall be transferred quarterly to the
treasurer of state and transferred to the Iowa finance authority for
deposit in the housing trust fund established in section 16.181
unless there is a written agreement between the buyer and seller to
the contrary. The broker shall not benefit from interest received on
funds of others in the broker's possession.
2. Each broker shall notify the real estate commission of the
name of each bank or savings and loan association in which a trust
account is maintained and also the name of the account on forms
provided therefor.
3. Each broker shall authorize the real estate commission to
examine each trust account and shall obtain the certification of the
bank or savings and loan association attesting to each trust account
and consenting to the examination and audit of each account by a duly
authorized representative of the commission. The certification and
consent shall be furnished on forms prescribed by the commission.
This subsection does not apply to an individual farm account
maintained in the name of the owner or owners for the purpose of
conducting ongoing farm business whether it is conducted by the farm
owner or by an agent or farm manager when the account is part of a
farm management agreement between the owner and agent or manager.
This subsection also does not apply to an individual property
management account maintained in the name of the owner or owners for
the purpose of conducting ongoing property management whether it is
conducted by the property owner or by an agent or manager when the
account is part of a property management agreement between the owner
and agent or manager.
4. Each broker shall only deposit trust funds received on real
estate or business opportunity transactions as defined in section
543B.6 in the common trust account and shall not commingle the
broker's personal funds or other funds in the trust account with the
exception that a broker may deposit and keep a sum not to exceed five
hundred dollars in the account from the broker's personal funds,
which sum shall be specifically identified and deposited to cover
bank service charges relating to the trust account.
5. A broker may maintain more than one trust account provided the
commission is advised of said account as specified in subsections 2
and 3 above.
6. The commission shall verify on a test basis, a random sampling
of the brokers, corporations, professional corporations, professional
limited liability companies, and partnerships for their trust account
compliance. The commission may upon reasonable cause, or as a part
of or after an investigation, request or order a special report.
7. The examination of a trust account shall be conducted by the
commission or the commission's authorized representative.
8. The commission shall adopt rules to ensure implementation of
this section. Section History: Early Form
[C71, 73, 75, 77, 79, 81, § 117.46; 81 Acts, ch 54, § 23; 82 Acts,
ch 1067, § 1] Section History: Recent Form
85 Acts, ch 252, § 1; 92 Acts, ch 1242, § 22, 23
C93, § 543B.46
93 Acts, ch 30, §2; 93 Acts, ch 175, §19; 95 Acts, ch 170, §7; 96
Acts, ch 1027, § 1; 97 Acts, ch 23, § 67; 97 Acts, ch 214, § 12; 2007
Acts, ch 13, §6; 2008 Acts, ch 1097, §3
Referred to in § 543B.29
543B.47 INSURANCE REQUIREMENT.
1. The real estate commission shall adopt rules requiring as a
condition of licensure that all real estate licensees, except those
who hold inactive licenses, carry errors and omissions insurance
covering all activities contemplated under this chapter. The rules
shall provide for administration of the insurance requirements of
this section within the multiyear licensing structure required by
section 543B.28. However, the rules shall require licensees to
submit evidence of compliance with this section within twenty
calendar days of the commission's request, which may be made on a
test basis, a random basis, or upon reasonable cause to question a
licensee's compliance.
2. The commission shall contract with an insurance provider for a
group policy under which coverage is available to all licensees, and
shall maintain coverage with the contracted provider unless the
commission determines that continuing the contract is not reasonably
practical. The contract shall be solicited by competitive, sealed
bid.
3. The group policy shall be made available to all licensees and
shall not include any right on the part of the insurance provider to
cancel coverage for a licensee.
4. A licensee shall have the option of obtaining insurance
independently, if the coverage contained in an independently obtained
policy complies with the minimum requirements adopted by rule of the
commission.
5. The commission shall determine the terms and conditions of
coverage required by subsection 1, including but not limited to the
minimum limits of coverage, the permissible deductible, and the
permissible exceptions.
6. Failure of a license applicant or licensee to carry the errors
and omissions insurance required by this section, or to timely submit
proof of coverage upon commission request, shall be grounds for the
denial of an application for licensure, the denial of an application
to renew a license, or the suspension or revocation of a license. Section History: Recent Form
90 Acts, ch 1126, § 2
C91, § 117.47
91 Acts, ch 97, § 21
C93, § 543B.47
2002 Acts, ch 1031, §3
Referred to in § 543B.29
543B.48 CIVIL PENALTY AMOUNT.
Notwithstanding section 272C.3, licensee discipline may include a
civil penalty not to exceed two thousand five hundred dollars per
violation. Section History: Recent Form
2002 Acts, ch 1031, §4
Referred to in § 543B.49
543B.49 INJUNCTIVE RELIEF.
1. In addition to the penalty and complaint provisions of
sections 543B.43, 543B.44, and 543B.48, an injunction may be granted
through an action in district court to prohibit a person from
engaging in an activity which violates the provisions of section
543B.1. The court shall grant a permanent or temporary injunction if
it appears to the court that a violation has occurred or is
imminently threatened. The plaintiff is not required to show that
the violation or threatened violation would greatly or irreparably
injure the plaintiff. No bond shall be required of the plaintiff
unless the court determines that a bond is necessary in the public
interest. The action for injunctive relief may be brought by an
affected person. For the purposes of this section, "affected
person" means any person directly impacted by the actions of a
person suspected of violating the provisions of section 543B.1,
including but not limited to the commission created in section
543B.8, a person who has utilized the services of a person suspected
of violating the provisions of section 543B.1, or a private
association composed primarily of members practicing a profession for
which licensure is required pursuant to this chapter.
2. If successful in obtaining injunctive relief, the affected
person shall be entitled to actual costs and attorney fees. For the
purposes of this section, "actual costs" means those costs other
than attorney fees which were actually incurred in connection with
the action, including but not limited to court and witness fees,
investigative expenses, travel expenses, legal research expenses, and
other related fees and expenses. Section History: Recent Form
2004 Acts, ch 1005, §3; 2006 Acts, ch 1055, §4
543B.50 MEETINGS.
The real estate commission shall hold at least one meeting per
year at the location of the commission's principal office and shall
elect a chairperson annually. A majority of the members of the
commission shall constitute a quorum. Section History: Early Form
[C75, 77, 79, 81, § 117.50] Section History: Recent Form
88 Acts, ch 1158, §24
C93, § 543B.50
543B.51 PUBLIC MEMBERS.
The public members of the real estate commission shall be allowed
to participate in administrative, clerical, or ministerial functions
incident to giving the examination, but shall not determine the
content of the examination or determine the correctness of the
answers. Section History: Early Form
[C75, 77, 79, 81, § 117.51] Section History: Recent Form
C93, § 543B.51
543B.52 DISCLOSURE OF CONFIDENTIAL INFORMATION.
1. The commission shall not disclose information relating to the
following:
a. The contents of the examination.
b. The examination results other than final score except for
information about the results of an examination which is given to the
person who took the examination.
2. A member of the commission who willfully communicates or seeks
to communicate such information, and any person who willfully
requests, obtains, or seeks to obtain such information, is guilty of
a simple misdemeanor. Section History: Early Form
[C75, 77, 79, 81, § 117.52] Section History: Recent Form
C93, § 543B.52
2008 Acts, ch 1059, §4
543B.53 APPLICATION OF CHAPTER.
The provisions of this chapter which require successful completion
of a real estate education course before being licensed as a real
estate salesperson shall not apply to persons who hold real estate
salesperson's licenses on July 1, 1976 or to the issuance of new
licenses to these persons under the provisions of section 543B.28.
Section History: Early Form
[C77, 79, 81, § 117.53; 81 Acts, ch 54, § 24] Section History: Recent Form
C93, § 543B.53
543B.54 REAL ESTATE EDUCATION FUND.
1. The Iowa real estate education fund is created as a financial
assurance mechanism to assist in the establishment and maintenance of
college credit real estate education programs at Iowa community
colleges and other Iowa colleges and universities, and to assist the
real estate commission in providing an education director. The fund
is created as a separate fund in the state treasury, and any funds
remaining in the fund at the end of each fiscal year shall not revert
to the general fund, but shall remain in the Iowa real estate
education fund.
2. Twenty-five dollars per license from fees deposited for each
real estate salesperson's license and each broker's license shall be
distributed and are appropriated to the real estate commission for
the purpose of establishing and maintaining a program to provide
grants to community colleges and other colleges and universities in
the state providing programs under this section and using the
curriculum maintained by the commission. Grants shall be awarded by
a grant committee established by the real estate commission. The
committee shall consist of seven members: two members of the
commission, four members appointed by the Iowa association of
realtors, and one member of the general public. The commission shall
promulgate rules, in consultation with the Iowa association of
realtors, relating to the organization and operation of the
committee, which shall include the term of membership, and
establishing standards for awarding grants. The members of the
committee may be reimbursed for actual and necessary expenses
incurred in the performance of their duties but shall not receive a
per diem payment.
3. The remaining moneys in the fund shall be distributed and are
appropriated to the professional licensing and regulation bureau of
the banking division of the department of commerce for the purpose of
hiring and compensating a real estate education director and
regulatory compliance personnel. Section History: Recent Form
89 Acts, ch 292, § 4
CS89, § 117.54
91 Acts, ch 260, § 1213
C93, § 543B.54
2004 Acts, ch 1175, §30; 2006 Acts, ch 1177, §39; 2007 Acts, ch
206, §27, 29; 2007 Acts, ch 215, §261; 2008 Acts, ch 1099, §4
Referred to in § 543B.14
543B.55 DISCLOSURE OF RELATIONSHIP.
The real estate commission shall adopt rules requiring that each
real estate broker or salesperson in a real estate transaction
disclose in writing the broker's or salesperson's agency relationship
with the buyer or seller in the transaction. Section History: Recent Form
90 Acts, ch 1126, §3
C91, § 117.55
C93, § 543B.55
543B.56 DUTIES OF LICENSEES.
1. Duties to all parties in a transaction. In providing
brokerage services to all parties to a transaction, a licensee shall
do all of the following:
a. Provide brokerage services to all parties to the
transaction honestly and in good faith.
b. Diligently exercise reasonable skill and care in providing
brokerage services to all parties.
c. Disclose to each party all material adverse facts that the
licensee knows except for the following:
(1) Material adverse facts known by the party.
(2) Material adverse facts the party could discover through a
reasonably diligent inspection, and which would be discovered by a
reasonably prudent person under like or similar circumstances.
(3) Material adverse facts the disclosure of which is prohibited
by law.
(4) Material adverse facts that are known to a person who
conducts an inspection on behalf of the party.
d. Account for all property coming into the possession of a
licensee that belongs to any party within a reasonable time of
receiving the property.
2. Duties to a client. In addition to the licensee's duties
under subsection 1, a licensee providing brokerage services to a
client shall do all of the following:
a. Place the client's interests ahead of the interests of any
other party, unless loyalty to a client violates the licensee's
duties under subsection 1, section 543B.58, or under other applicable
law.
b. Disclose to the client all information known by the
licensee that is material to the transaction and that is not known by
the client or could not be discovered by the client through a
reasonably diligent inspection.
c. Fulfill any obligation that is within the scope of the
agency agreement, except those obligations that are inconsistent with
other duties that the licensee has under this chapter or any other
law.
d. Disclose to a client any financial interests the licensee
or the brokerage has in any business entity to which the licensee or
brokerage refers a client for any service or product related to the
transaction.
3. Prohibited conduct. In providing brokerage services, a
licensee shall not do either of the following:
a. Accept a fee or compensation related to a transaction from
a person other than the licensee's client, unless the licensee has
provided written notice to all parties to the transaction that a fee
or compensation will be accepted by the licensee from such person.
b. Act in a transaction on the licensee's own behalf, on
behalf of the licensee's immediate family or brokerage, or on behalf
of an organization or business entity in which the licensee has an
interest, unless the licensee has provided written disclosure of the
interest to all parties to the transaction. Section History: Recent Form
95 Acts, ch 17, §2; 96 Acts, ch 1054, § 2
Referred to in § 543B.57, 543B.58, 543B.61
543B.56A BROKERAGE AGREEMENTS -- CONTENTS.
A brokerage agreement shall specify that the broker shall, at a
minimum, do all of the following:
1. Accept delivery of and present to the client offers and
counteroffers to buy, sell, rent, lease, or exchange the client's
property or the property the client seeks to purchase or lease.
2. Assist the client in developing, communicating, negotiating,
and presenting offers or counteroffers until a rental agreement,
lease, exchange agreement, offer to buy or sell, or purchase
agreement is signed and all contingencies are satisfied or waived and
the transaction is completed.
3. Answer the client's questions relating to the brokerage
agreements, listing agreements, offers, counteroffers, notices, and
contingencies.
4. Provide prospective buyers access to listed properties. Section History: Recent Form
2005 Acts, ch 40, §2
Referred to in § 543B.5, 543B.61
543B.57 CONFIRMATION AND DISCLOSURE OF
RELATIONSHIP.
1. A licensee shall not represent any party or parties to a
transaction or otherwise as a licensee unless that licensee makes a
disclosure to all parties to the transaction identifying which party
that person represents in the transaction.
2. a. The disclosure required in subsection 1 shall be made
by the licensee at the time the licensee provides specific assistance
to the client. A change in a licensee's representation that makes
the initial disclosure incomplete, misleading, or inaccurate requires
that a new disclosure be made immediately.
b. A written disclosure is required to be made prior to an
offer being made or accepted by any party to a transaction. The
written disclosure shall be acknowledged by separate signatures of
all parties to the transaction prior to any offer being made or
accepted by any party to a transaction.
c. For purposes of this section, "specific assistance"
means eliciting or accepting confidential information about a party's
real estate needs, motivation, or financial qualifications, or
eliciting or accepting information involving a proposed or
preliminary offer associated with specific real estate. "Specific
assistance" does not mean an open house showing, preliminary
conversations concerning price range, location, and property styles,
or responding to general factual questions concerning properties
which have been advertised for sale or lease.
3. The written agency disclosure form shall contain all of the
following:
a. A statement of which party is the licensee's client or, if
the licensee is providing brokerage services to more than one client
as provided under section 543B.60, a statement of all persons who are
the licensee's clients.
b. A statement of the licensee's duties to the licensee's
client under section 543B.56, subsections 1 and 2.
c. Any additional information that the licensee determines is
necessary to clarify the licensee's relationship to the licensee's
client or customer.
4. This section does not prohibit a person from representing
oneself.
5. The seller, in the listing agreement, may authorize the
seller's licensee to disburse part of the licensee's compensation to
other licensees, including a buyer's licensee solely representing the
buyer. A licensee representing a buyer shall inform the listing
licensee, if there is a listing licensee, either verbally or in
writing, of the agency relationship before any negotiations are
initiated. The obligation of either the seller or the buyer to pay
compensation to a licensee is not determinative of the agency
relationship. Section History: Recent Form
95 Acts, ch 17, §3; 97 Acts, ch 82, § 1
Referred to in § 543B.60, 543B.61
543B.58 LICENSEES REPRESENTING MORE THAN ONE CLIENT
IN A TRANSACTION.
1. A licensee shall not be the agent for both a buyer and a
seller to a transaction without obtaining the written consent of both
the buyer and the seller. The written consent shall state that the
licensee has made a full disclosure of the type of representation the
licensee will provide. The consent to multiple representation shall
contain a statement of the licensee's duties under section 543B.56,
subsection 1, a statement of the licensee's duties to the client
under section 543B.56, subsection 2, paragraphs "b" and "c",
and a statement that the clients understand the licensee's duties and
consent to the licensee's providing brokerage services to more than
one client.
2. A consent to multiple representation may contain additional
disclosures by the licensee or additional agreements between the
licensee and the clients that do not violate any duty of a licensee
under this chapter. Section History: Recent Form
95 Acts, ch 17, §4
Referred to in § 543B.56, 543B.61
543B.59 APPOINTED AGENTS WITHIN A FIRM.
1. Appointed agents. A real estate brokerage agency entering
into a brokerage agreement, through a designated broker, may notify a
client in writing of those affiliated licensees within the real
estate brokerage agency who will be acting as appointed agents of
that client to the exclusion of all other affiliated licensees within
the real estate brokerage agency.
2. Dual agent. A real estate brokerage agency and a
designated broker are not considered to be dual agents solely because
of an appointment under the provisions of this section. However, an
affiliated licensee who personally represents both the seller and the
buyer in a particular transaction is considered to be a disclosed
dual agent and is required to comply with the provisions of this
subchapter governing disclosed dual agents.
3. Actual knowledge -- information. A client, a real estate
brokerage agency, and its appointed agents are deemed to possess only
actual knowledge and information at the time the appointed agents are
appointed. Knowledge or information is not imparted by operation of
law among the clients, the real estate brokerage agency, and its
appointed agents.
4. Appointments -- roles. The commission shall define by
rule the methods of appointment and the role of the real estate
brokerage agency and the designated broker. The rules must include a
requirement that clients be informed as to the real estate brokerage
agency's appointed agent policy and be given written notice of that
policy in advance of entering into a brokerage agreement. Section History: Recent Form
95 Acts, ch 17, §5
Referred to in § 543B.61
543B.60 LICENSEES PROVIDING SERVICES IN MORE THAN ONE
TRANSACTION.
A licensee may provide brokerage services simultaneously to more
than one party in different transactions unless the licensee agrees
with a client that the licensee is to provide brokerage services only
to that client. If the licensee and a client agree that the licensee
is to provide brokerage services only to that client, the agency
agreement disclosure required under section 543B.57, subsection 1,
shall contain a statement of that agreement. Section History: Recent Form
95 Acts, ch 17, §6
Referred to in § 543B.57, 543B.61
543B.60A PROHIBITED PRACTICES -- BUSINESS REFERRAL
DISCLOSURES.
1. A licensee shall not request a referral fee after a bona fide
offer to purchase is accepted.
2. A licensee shall not request a referral fee after a bona fide
listing agreement has been signed.
3. A licensee shall not offer, promote, perform, provide, or
otherwise participate in any marketing plan that requires a consumer
to receive brokerage services, including referral services, from two
or more licensees in a single real estate transaction, as a required
condition for the consumer to receive either of the following:
a. Brokerage services from one or more of such licensees.
b. A rebate, prize, or other inducement from one or more such
licensees.
4. For purposes of this section, "consumer" shall include
parties or prospective parties to a real estate transaction, clients
or prospective clients of a licensee, or customers or prospective
customers of a licensee.
5. This section does not address relationships between a broker
and the broker associates or salespersons licensed under, employed
by, or otherwise associated with the broker in a real estate
brokerage agency.
6. A violation of this section is deemed a violation of section
543B.29, subsection 1, paragraph "c".
7. The purpose of this section is to prohibit licensee practices
that interfere with contractual arrangements, place improper
restrictions on consumer choice, compromise a licensee's fiduciary
obligations, and create conflicts of interest.
8. An Iowa licensee is prohibited from participating in any
marketing plan or arrangement prohibited by this section with a
person who is licensed or otherwise authorized to engage in the real
estate business in another state or foreign country. This subsection
shall not be interpreted to impact or alter a referral fee structure
which otherwise complies with the requirements of this section.
9. A licensee or person licensed in another state or foreign
country who conducts business in this state or refers business to a
licensee in this state shall disclose in writing to the consumer and
to the licensee to whom they are referring business, the name of the
consumer being referred, the name of the referring company, and the
amount of compensation they are receiving for the referral. This
subsection shall not affect or restrict business practices relating
to payment methods between listing and selling brokerages, and shall
be applicable strictly to properties containing at least one but not
more than four dwelling units. Section History: Recent Form
99 Acts, ch 22, §2; 2005 Acts, ch 179, §73; 2007 Acts, ch 153, §1,
2; 2008 Acts, ch 1099, §5
543B.61 VIOLATIONS -- REAL ESTATE COMMISSION
JURISDICTION.
1. Failure of a licensee to comply with sections 543B.57 through
543B.60 is prima facie evidence of a violation under section 543B.34,
subsection 4.
2. Failure of a licensee to act in accordance with the
disclosures made pursuant to sections 543B.56 through 543B.58 is
prima facie evidence of a violation under section 543B.34, subsection
4.
3. Nothing in this subchapter shall affect the validity of title
to real property transferred based solely on the reason that a
licensee failed to conform to the provisions of this subchapter. Section History: Recent Form
95 Acts, ch 17, §7
543B.62 CHANGES IN COMMON LAW DUTIES AND LIABILITIES
OF LICENSEES AND PARTIES.
1. Except as provided in subsection 2, the duties of a licensee
specified in this chapter or in rules adopted pursuant to this
chapter supersede any fiduciary duties of a licensee to a party to a
transaction based on common law principles of agency to the extent
that those common law fiduciary duties are inconsistent with the
duties specified in this chapter or rules adopted pursuant to this
chapter.
2. This section shall not be construed to modify a licensee's
duty under common law as to negligent or fraudulent misrepresentation
of material information.
3. a. A licensee who is providing brokerage services to a
client and who retains another licensee to provide brokerage services
to that client is not liable for misrepresentation made by the other
licensee, unless the retaining licensee knew or should have known of
the other licensee's misrepresentation or the other licensee is
repeating a misrepresentation made to the other licensee by the
retaining licensee.
b. A broker is responsible for supervising a salesperson or
broker associate employed by or otherwise associated with the broker
as a representative of the broker. The existence of an independent
contractor relationship or any other special compensation arrangement
between the broker and the salesperson or broker associate does not
relieve the broker, salesperson, or broker associate of the duties
and responsibilities established by this chapter. A salesperson or
broker associate shall keep the employing broker fully informed of
all activities being conducted on behalf of the broker and any other
activities that might impact on the broker's responsibilities.
However, the failure of the salesperson or broker associate to keep
the employing broker fully informed does not relieve the broker of
the duties and responsibilities established by this chapter. Section History: Recent Form
95 Acts, ch 17, §8
543B.63 LICENSEE NOT CONSIDERED SUBAGENT.
A licensee is not considered to be a subagent of a client of
another licensee solely by reason of membership or other affiliation
by the licensee in a multiple listing service or other similar
information source, and an offer of subagency shall not be made
through a multiple listing service or other similar information
source. Section History: Recent Form
95 Acts, ch 17, §9
543B.64 CHAPTER IS NOT LIMITING.
The duties imposed upon persons under this chapter or pursuant to
rules adopted by the real estate commission shall not limit or
abridge any duty or responsibility to disclose created by other
applicable law, or under a contract between parties. Section History: Recent Form
95 Acts, ch 17, §10