Text: HF02187 Text: HF02189 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 543B.34, subsection 9, Code 1997, is 1 2 amended to read as follows: 1 3 9. a. Paying a commission or other valuable consideration 1 4 or any part ofasuch commission or consideration for 1 5 performing any of the acts specified in this chapter to a 1 6 person who is not a licensed broker or salesperson under this 1 7 chapter or who is not engaged in the real estate business in 1 8 another state or foreign country, or paying a commission or 1 9 other valuable consideration for performing any of the acts 1 10 specified in this chapter to a licensee knowing that the 1 11 licensee will pay a portion or all of such commission or 1 12 consideration to a person who is not licensed pursuant to this 1 13 chapter, provided that the provisions of this section shall 1 14 not be construed to prohibit the payment of earned commissions 1 15 or consideration to any of the following: 1 16 (1) The estate or heirs of a deceased real estate licensee 1 17 when such licensee had a valid real estate license in effect 1 18 at the time the commission or consideration was earned. 1 19 (2) A citizen of another country acting as a referral 1 20 agent if that country does not license real estate brokers and 1 21 if the Iowa licensee paying the commission orcompensation1 22 consideration obtains and maintains reasonable written 1 23 evidence that the payee is a citizen of the other country, is 1 24 not a resident of this country, and is in the business of 1 25 brokering real estate in that other country. 1 26 (3) A corporation pursuant to paragraph "b". 1 27 b. A broker may pay a commission or other valuable 1 28 consideration to a corporation which is wholly owned, or owned 1 29 with a spouse, by a salesperson or broker associate employed 1 30 by or otherwise associated with the broker, if all of the 1 31 following conditions are met: 1 32 (1) The corporation does not engage in real estate 1 33 transactions as a third-party agent or in any other activity 1 34 requiring a license under this chapter. 1 35 (2) The employing broker is not relieved of any obligation 2 1 to supervise the employed licensee or any other requirement of 2 2 this chapter or the rules adopted pursuant to this chapter. 2 3 (3) The employed broker associate or salesperson is not 2 4 relieved from any personal civil liability for any licensed 2 5 activities by interposing the corporate form. 2 6 (4) The corporation does not pay a portion or all of such 2 7 commission or consideration to a person who is not licensed 2 8 pursuant to this chapter. 2 9 EXPLANATION 2 10 This bill provides that the real estate commission may 2 11 suspend or revoke a real estate license if the licensee is 2 12 found to be guilty of paying a commission or other valuable 2 13 consideration for performing any acts of a real estate broker 2 14 or salesperson to another licensed person knowing that such 2 15 person will pay a portion or all of such commission or 2 16 consideration to a person who is not licensed by the real 2 17 estate commission. 2 18 The bill adds an additional condition which must be met 2 19 with respect to a commission or other valuable consideration 2 20 paid by a broker to a corporation. The bill provides that 2 21 such corporation must not pay a portion or all of such 2 22 commission or consideration to a person who is not licensed by 2 23 the real estate commission. 2 24 LSB 3676HH 77 2 25 mj/cf/24
Text: HF02187 Text: HF02189 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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