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House File 98

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 543B.5, Code 1997, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  18A.  "Residential property" means real
  1  4 property located in this state which is occupied, used, or
  1  5 intended to be occupied or used, for residential purposes, and
  1  6 having four or fewer dwelling units.
  1  7    Sec. 2.  Section 543B.56, subsection 1, unnumbered
  1  8 paragraph 1, Code 1997, is amended to read as follows:
  1  9    In providing brokerage services to all parties to a
  1 10 residential property transaction, a licensee shall do all of
  1 11 the following:
  1 12    Sec. 3.  Section 543B.56, subsection 2, unnumbered
  1 13 paragraph 1, Code 1997, is amended to read as follows:
  1 14    In addition to the licensee's duties under subsection 1, a
  1 15 licensee providing brokerage services to a client with respect
  1 16 to a residential property transaction shall do all of the
  1 17 following:
  1 18    Sec. 4.  Section 543B.56, subsection 3, unnumbered
  1 19 paragraph 1, Code 1997, is amended to read as follows:
  1 20    In providing brokerage services with respect to a
  1 21 residential property transaction, a licensee shall not do
  1 22 either of the following:
  1 23    Sec. 5.  Section 543B.57, subsections 1 and 2, Code 1997,
  1 24 are amended to read as follows:
  1 25    1.  A licensee shall not represent any party or parties to
  1 26 a residential property transaction or otherwise as a licensee
  1 27 unless that licensee makes an affirmative written disclosure
  1 28 to all parties to the transaction identifying which party that
  1 29 person represents in the transaction.  The disclosure shall be
  1 30 acknowledged by separate signatures of all parties to the
  1 31 transaction.
  1 32    2.  a.  The disclosure required in subsection 1 shall be
  1 33 made by the licensee at the time the licensee provides
  1 34 specific assistance to the client, or prior to any offer being
  1 35 made or accepted by any party to a the residential property
  2  1 transaction, whichever is sooner.  A change in a licensee's
  2  2 representation that makes the initial disclosure incomplete,
  2  3 misleading, or inaccurate requires that a new disclosure be
  2  4 made immediately.
  2  5    b.  For purposes of this section, "specific assistance"
  2  6 means eliciting or accepting confidential information about a
  2  7 party's real estate needs, motivation, or financial
  2  8 qualifications.  "Specific assistance" does not mean an open
  2  9 house showing, preliminary conversations concerning price
  2 10 range, location, and property styles, or responding to general
  2 11 factual questions concerning properties which have been
  2 12 advertised for sale or lease.
  2 13    Sec. 6.  Section 543B.58, Code 1997, is amended to read as
  2 14 follows:
  2 15    543B.58  LICENSEES REPRESENTING MORE THAN ONE CLIENT IN A
  2 16 RESIDENTIAL PROPERTY TRANSACTION.
  2 17    1.  A licensee shall not be the agent for both a buyer and
  2 18 a seller to a residential property transaction without
  2 19 obtaining the written consent of both the buyer and the
  2 20 seller.  The written consent shall state that the licensee has
  2 21 made a full disclosure of the type of representation the
  2 22 licensee will provide.  The consent to multiple representation
  2 23 shall contain a statement of the licensee's duties under
  2 24 section 543B.56, subsection 1, a statement of the licensee's
  2 25 duties to the client under section 543B.56, subsection 2,
  2 26 paragraphs "b" and "c", and a statement that the clients
  2 27 understand the licensee's duties and consent to the licensee's
  2 28 providing brokerage services to more than one client.
  2 29    2.  A consent to multiple representation may contain
  2 30 additional disclosures by the licensee or additional
  2 31 agreements between the licensee and the clients that do not
  2 32 violate any duty of a licensee under this chapter.
  2 33    Sec. 7.  Section 543B.59, Code 1997, is amended to read as
  2 34 follows:
  2 35    543B.59  APPOINTED AGENTS WITHIN A FIRM.
  3  1    1.  APPOINTED AGENTS.  A real estate brokerage agency
  3  2 entering into a residential property brokerage agreement,
  3  3 through a designated broker, may notify a client in writing of
  3  4 those affiliated licensees within the real estate brokerage
  3  5 agency who will be acting as appointed agents of that client
  3  6 to the exclusion of all other affiliated licensees within the
  3  7 real estate brokerage agency.
  3  8    2.  DUAL AGENT.  A real estate brokerage agency and a
  3  9 designated broker are not considered to be dual agents solely
  3 10 because of an appointment under the provisions of this
  3 11 section.  However, an affiliated licensee who personally
  3 12 represents both the seller and the buyer in a particular
  3 13 residential property transaction is considered to be a
  3 14 disclosed dual agent and is required to comply with the
  3 15 provisions of this subchapter governing disclosed dual agents.
  3 16    3.  ACTUAL KNOWLEDGE – INFORMATION.  A client, a real
  3 17 estate brokerage agency, and its appointed agents are deemed
  3 18 to possess only actual knowledge and information at the time
  3 19 the appointed agents are appointed.  Knowledge or information
  3 20 is not imparted by operation of law among the clients, the
  3 21 real estate brokerage agency, and its appointed agents.
  3 22    4.  APPOINTMENTS – ROLES.  The commission shall define by
  3 23 rule the methods of appointment and the role of the real
  3 24 estate brokerage agency and the designated broker.  The rules
  3 25 must include a requirement that clients be informed as to the
  3 26 real estate brokerage agency's appointed agent policy and be
  3 27 given written notice of that policy in advance of entering
  3 28 into a residential property brokerage agreement.
  3 29    Sec. 8.  Section 543B.60, Code 1997, is amended to read as
  3 30 follows:
  3 31    543B.60  LICENSEES PROVIDING SERVICES IN MORE THAN ONE
  3 32 RESIDENTIAL PROPERTY TRANSACTION.
  3 33    A licensee may provide brokerage services simultaneously to
  3 34 more than one party in different residential property
  3 35 transactions unless the licensee agrees with a client that the
  4  1 licensee is to provide brokerage services only to that client.
  4  2 If the licensee and a client agree that the licensee is to
  4  3 provide brokerage services only to that client, the agency
  4  4 agreement disclosure required under section 543B.57,
  4  5 subsection 1, shall contain a statement of that agreement.  
  4  6                           EXPLANATION
  4  7    This bill provides that certain sections of Code chapter
  4  8 543B regarding the relationship between a real estate broker
  4  9 or salesperson (licensee) and the parties to a transaction are
  4 10 only applicable where the real estate transaction involves
  4 11 residential property.  Those Code sections include section
  4 12 543B.56, which establishes certain duties owed by the licensee
  4 13 to all parties to the transaction and to the licensee's
  4 14 client; section 543B.57, which requires the licensee to make
  4 15 written disclosure to all parties to the transaction
  4 16 identifying which party the licensee represents; section
  4 17 543B.58, which requires the licensee to obtain the written
  4 18 consent of the buyer and seller in the transaction if the
  4 19 licensee intends to represent both parties; section 543B.59,
  4 20 relating to appointed agents; and section 543B.60, which
  4 21 provides that a licensee may provide brokerage services
  4 22 simultaneously to more than one party in different
  4 23 transactions unless the licensee is under agreement with a
  4 24 client to provide such services only to that client.
  4 25    The bill defines residential property as real property
  4 26 occupied, used, or intended to be occupied or used, for
  4 27 residential purposes, and having four or fewer dwelling units.  
  4 28 LSB 1505HH 77
  4 29 mj/cf/24
     

Text: HF00097                           Text: HF00099
Text: HF00000 - HF00099                 Text: HF Index
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