Text: HF00251 Text: HF00253 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 543B.1, Code 1995, is amended by 1 2 striking the section and inserting in lieu thereof the 1 3 following: 1 4 543B.1 LICENSE MANDATORY. 1 5 A person shall not, directly or indirectly, with the 1 6 intention or upon the promise of receiving any valuable 1 7 consideration, offer, attempt, agree to perform, or perform 1 8 any single act as a real estate broker whether as a part of a 1 9 transaction or as an entire transaction, or represent oneself 1 10 as a real estate broker, broker associate, or salesperson, 1 11 without first obtaining a license and otherwise complying with 1 12 the requirements of this chapter. 1 13 Sec. 2. Section 543B.3, Code 1995, is amended by striking 1 14 the section and inserting in lieu thereof the following: 1 15 543B.3 BROKER &endash; DEFINITION. 1 16 As used in this chapter, "real estate broker" means a 1 17 person acting for another for a fee, commission, or other 1 18 compensation or promise, whether it be for all or part of a 1 19 person's time, and who engages directly or indirectly in any 1 20 of the following acts: 1 21 1. Sells, exchanges, purchases, rents, or leases real 1 22 estate. 1 23 2. Lists, offers, attempts, or agrees to list real estate 1 24 for sale, exchange, purchase, rent, or lease. 1 25 3. Advertises or holds oneself out as being engaged in the 1 26 business of selling, exchanging, purchasing, renting, leasing, 1 27 or managing real estate. 1 28 4. Negotiates, or offers, attempts, or agrees to 1 29 negotiate, the sale, exchange, purchase, rental, or lease of 1 30 real estate. 1 31 5. Buys, sells, offers to buy or sell, or otherwise deals 1 32 in options on real estate or improvements on real estate. 1 33 6. Collects, or offers, attempts, or agrees to collect, 1 34 rent for the use of real estate. 1 35 7. Assists or directs in the procuring of prospects, 2 1 intended to result in the sale, exchange, purchase, rental, or 2 2 leasing of real estate. 2 3 8. Assists or directs in the negotiation of any 2 4 transaction intended to result in the sale, exchange, 2 5 purchase, rental, or leasing of real estate. 2 6 Sec. 3. Section 543B.4, Code 1995, is amended to read as 2 7 follows: 2 8 543B.4 REAL ESTATE &endash; DEFINITION. 2 9"Real estate" asAs used in this chapter,shall mean"real 2 10 estate" means real property wherever situated, andshall2 11includeincludes any and all leaseholds or any other interest 2 12 or estatethereinin land, and business opportunities which 2 13 involve any interest in real property. 2 14 Sec. 4. Section 543B.5, Code 1995, is amended to read as 2 15 follows: 2 16 543B.5 OTHER DEFINITIONS. 2 17 As used in this chapter: 2 18 1. "Branch office" means a real estate broker's office 2 19 other than a principal place of business. 2 201.2. "Broker associate" means a person who has a broker's 2 21 license but is licensed under, and employed by or otherwise 2 22 associated with, another broker as a salesperson. 2 232.3. "Inactive license" means either a broker or 2 24 salesperson license certificate that is on file with the real 2 25 estate commission in the commission office and during which 2 26 time the licensee is precluded from engaging in any of the 2 27 acts of this chapter. 2 28 4. "Person" means an individual, partnership, association, 2 29 or corporation. 2 30 5. "Regular employee" means a person whose compensation is 2 31 fixed in advance, who does not receive a commission, who works 2 32 exclusively for the owner, and whose total compensation is 2 33 subject to state and federal withholding. 2 343.6. "Salesperson" means a person who is licensed under, 2 35 and employed by or otherwise associated with, a real estate 3 1 broker, as a selling, renting, or listing agent or 3 2 representative of the broker. 3 3 Sec. 5. Section 543B.7, Code 1995, is amended to read as 3 4 follows: 3 5 543B.7 ACTS EXCLUDED FROM PROVISIONS. 3 6 The provisions of this chapter shall not apply to the sale, 3 7 exchange, purchase, rental, lease, or advertising of any real 3 8 estate in any of the following cases: 3 91. Owners or lessors, or to the regular employees thereof,3 10with respect to the property owned and leased where such acts3 11are performed in the regular course of or incident to the3 12management of property owned and the investment therein.3 13 1. A person who, as owner, spouse of an owner, general 3 14 partner of a limited partnership, lessor, or prospective 3 15 purchaser, or through another engaged by such person on a 3 16 regular full-time basis, buys, sells, manages, or otherwise 3 17 performs any act with reference to property owned, rented, 3 18 leased, or to be acquired by such person. 3 19 2. By any person acting as attorney in fact under a duly 3 20 executed and acknowledged power of attorney from the owner, 3 21authorizingto act on behalf of the owner or lessor to 3 22 authorize the final consummation and execution of any contract 3 23 for the sale, leasing, or exchange of real estate. 3 24 3.Nor shall the provisions of this chapter apply to anA 3 25 licensed attorney admitted to practice in Iowa acting solely 3 26 as an incident to the practice of law. 3 27 4.The acts of one whileA person acting as a receiver, 3 28 trustee in bankruptcy, administrator, executor, guardian, or 3 29 while acting under court order orwhile actingunder authority 3 30 of a deed of trust, trust agreement, or will. 3 31 5. The acts of an auctioneer in conducting a public sale 3 32 or auction. The auctioneer's role must be limited to 3 33 establishing the time, place, and method of an auction, 3 34 advertising the auction including a brief description of the 3 35 property for auction and the time and place for the auction, 4 1 and crying the property at the auction. If the auctioneer 4 2 closes or attempts to close the sale of the property or 4 3 otherwise engages in acts defined in sections 543B.3 and 4 4 543B.6, then the requirements of this chapter do apply to the 4 5 auctioneer. 4 6 6. An isolated real estate rental transaction by an 4 7 owner's representative on behalf ofsaidthe owner; such 4 8 transaction not being made in the course of repeated and 4 9 successive transactions of a like character. 4 10 7. The sale of time-share uses as defined in section 4 11 557A.2. 4 12 8. A person acting as a resident manager when such 4 13 resident manager resides in the dwelling and is engaged in the 4 14 leasing of real property in connection with their employment. 4 15 9. An officer or employee of the federal government, state 4 16 government, or a political subdivision of the state, in the 4 17 conduct of the officer's or employee's official duties. 4 18 10. A person employed by a public or private utility who 4 19 performs an act with reference to property owned, leased, or 4 20 to be acquired by the utility employing that person, where 4 21 such an act is performed in the regular course of, or incident 4 22 to, the management of the property and the investment in the 4 23 property. 4 24 Sec. 6. Section 543B.34, subsection 9, Code 1995, is 4 25 amended to read as follows: 4 26 9. a. Paying a commission or any part of a commission for 4 27 performing any of the acts specified in this chapter to a 4 28 person who is not a licensed broker or salesperson under this 4 29 chapter or who is not engaged in the real estate business in 4 30 another state or foreign country, provided that the provisions 4 31 of this section shall not be construed to prohibit the payment 4 32 of earned commissions to any of the following: 4 33 (1) The estate or heirs of a deceased real estate licensee 4 34 when such licensee had a valid real estate license in effect 4 35 at the time the commission was earned. 5 1 (2) A citizen of another country acting as a referral 5 2 agent if that country does not license real estate brokers and 5 3 if the Iowa licensee paying the commission or compensation 5 4 obtains and maintains reasonable written evidence that the 5 5 payee is a citizen of the other country, is not a resident of 5 6 this country, and is in the business of brokering real estate 5 7 in that other country. 5 8 (3) A corporation pursuant to paragraph "b". 5 9 b.However, aA broker may pay a commission to a 5 10 corporation which is wholly owned, or owned with a spouse, by 5 11 a salesperson or broker associate employed by or otherwise 5 12 associated with the broker, if all of the following conditions 5 13 are met: 5 14a.(1) The corporation does not engage in real estate 5 15 transactions as a third-party agent or in any other activity 5 16 requiring a license under this chapter. 5 17b.(2) The employing broker is not relieved of any 5 18 obligation to supervise the employed licensee or any other 5 19 requirement of this chapter or the rules adopted pursuant to 5 20 this chapter. 5 21c.(3) The employed broker associate or salesperson is 5 22 not relieved from any personal civil liability for any 5 23 licensed activities by interposing the corporate form. 5 24 Sec. 7. Section 543B.46, subsection 4, Code 1995, is 5 25 amended to read as follows: 5 26 4. Each broker shall only deposit trust funds received on 5 27 real estate or business opportunity transactions as defined in 5 28 section 543B.6 insaidthe common trust account and shall not 5 29 commingle the broker's personal funds or other funds insaid5 30 the trust account with the exception that a broker may deposit 5 31 and keep a sum not to exceedonefive hundred dollars insaid5 32 the account from the broker's personal funds, which sum shall 5 33 be specifically identified and deposited to cover bank service 5 34 charges relating tosaidthe trust account. 5 35 EXPLANATION 6 1 This bill amends provisions of chapter 543B relating to 6 2 real estate brokers and salespersons. 6 3 Section 543B.1, which establishes a licensing requirement 6 4 for real estate brokers and salespersons, is rewritten to 6 5 provide that it is unlawful for a person to offer, attempt, 6 6 agree to perform, or perform any single act as a real estate 6 7 broker for compensation, or to represent oneself as a real 6 8 estate broker, broker associate, or salesperson, without first 6 9 obtaining a license and otherwise complying with the 6 10 requirements of this chapter. Currently, the section provides 6 11 that a person is not to act as a real estate broker or real 6 12 estate salesperson without first obtaining a license. 6 13 Section 543B.3, which establishes the definition of "real 6 14 estate broker", is rewritten to provide that "real estate 6 15 broker" means a person acting for another for a fee, 6 16 commission, or other compensation or promise, who engages in 6 17 any of the acts as specified in the section. The acts pertain 6 18 to transactions involving real estate, holding oneself out as 6 19 being in the business of conducting such transactions, and 6 20 collecting or offering to collect rent for the use of real 6 21 estate. 6 22 Section 543B.4, which establishes the definition of "real 6 23 estate", is amended to include all leaseholds or any other 6 24 interest in land, and business opportunities which involve any 6 25 interest in real property. 6 26 Section 543B.5, which establishes certain other definitions 6 27 used in the chapter, is amended as follows: 6 28 1. The definition of "broker associate" is amended to 6 29 provide that a broker associate must be licensed under another 6 30 broker as a salesperson. 6 31 2. The definition of "salesperson" is amended to provide 6 32 that a salesperson must be licensed under a real estate 6 33 broker. 6 34 3. New definitions are established for "branch office", 6 35 "person", and "regular employee". 7 1 Section 543B.7, which relates to acts excluded from the 7 2 provisions of the chapter, is amended to include a person who 7 3 as owner, owner's spouse, general partner of a limited 7 4 partnership, lessor, or prospective purchaser, or through 7 5 another engaged by any of these persons, buys, sells, manages, 7 6 or performs any other act related to property owned, rented, 7 7 leased, or to be acquired by these persons; a person acting as 7 8 a resident manager; an officer or employee of the state, 7 9 federal government, or of a political subdivision; or a person 7 10 employed by a public utility with respect to property owned, 7 11 leased, or to be acquired by the public utility, as persons to 7 12 which the chapter does not apply. 7 13 Section 543B.34, subsection 9, which relates to actions of 7 14 a licensee which may result in the suspension or revocation of 7 15 a license, is amended to include improper payment of a 7 16 commission to a person in a foreign country, and also provides 7 17 that the section is not to be construed to prohibit the 7 18 payment of an earned commission to the estate or heirs of a 7 19 deceased real estate licensee, or a citizen of another country 7 20 acting as a referral agent if that country does not license 7 21 real estate brokers and that person is not a resident of this 7 22 country and is in the business of brokering real estate in 7 23 that other country. 7 24 Section 543B.46, subsection 4, is amended to provide that a 7 25 broker may deposit a sum not to exceed $500 in the broker's 7 26 trust account. Current law provides that a broker may not 7 27 deposit a sum greater than $100 in the account. 7 28 LSB 1183HV 76 7 29 mj/sc/14
Text: HF00251 Text: HF00253 Text: HF00200 - HF00299 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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