Text: HF00423                           Text: HF00425
Text: HF00400 - HF00499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

House File 424

Partial Bill History

Bill Introduced: H.J. 487
Committee Report Issued: H.J. 620
Complete Bill History

Bill Text

PAG LIN
  1  1    Section 1.  Section 543B.34, subsection 9, Code 1999, is
  1  2 amended to read as follows:
  1  3    9.  a.  Paying a commission or other valuable consideration
  1  4 or any part of a such 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 of or all of such commission or
  1 12 consideration to a person or party who is not licensed
  1 13 pursuant to this chapter, provided that the provisions of this
  1 14 section shall not be construed to prohibit the payment of
  1 15 earned commissions or consideration to any of the following:
  1 16    (1) a.  The estate or heirs of a deceased real estate
  1 17 licensee when such licensee had a valid real estate license in
  1 18 effect at the time the commission or consideration was earned.
  1 19    (2) b.  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 or compensation
  1 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 to a corporation which is
  1 28 wholly owned, or owned with a spouse, by a salesperson or
  1 29 broker associate employed by or otherwise associated with the
  1 30 broker, if all of the following conditions are met:
  1 31    (1)  The corporation does not engage in real estate
  1 32 transactions as a third-party agent or in any other activity
  1 33 requiring a license under this chapter.
  1 34    (2)  The employing broker is not relieved of any obligation
  1 35 to supervise the employed licensee or any other requirement of
  2  1 this chapter or the rules adopted pursuant to this chapter.
  2  2    (3)  The employed broker associate or salesperson is not
  2  3 relieved from any personal civil liability for any licensed
  2  4 activities by interposing the corporate form.
  2  5    Sec. 2.  NEW SECTION.  543B.60A  RESTRICTIONS ON PAYMENT OF
  2  6 COMMISSION TO OTHERS.
  2  7    1.  A person or licensee shall not require that a person,
  2  8 party, client, or customer negotiate a listing or purchase
  2  9 agreement or contract of real estate through a particular
  2 10 broker or group of brokers, salesperson or group of
  2 11 salespersons, or agent or group of agents.
  2 12    2.  A licensee shall not pay a commission, or portion of a
  2 13 commission, or other valuable consideration to a person or
  2 14 other licensee as described in subsection 1.
  2 15    3.  A violation of this section shall be considered a
  2 16 violation under section 543B.34, subsection 4.  In addition to
  2 17 any other penalty applicable, a license to practice the
  2 18 profession of real estate broker or salesperson may be revoked
  2 19 or suspended for a violation of this section.
  2 20    4.  For purposes of this section, "person" means an
  2 21 individual, corporation, association, partnership, or other
  2 22 legal entity.  
  2 23                           EXPLANATION
  2 24    This bill relates to the relationship between a real estate
  2 25 licensee and a client, and the payment of a commission,
  2 26 portion of a commission, or other valuable consideration to
  2 27 certain persons.
  2 28    This bill amends Code section 543B.34 and provides that the
  2 29 real estate commission may suspend or revoke a real estate
  2 30 license if the licensee is found to be guilty of paying a
  2 31 commission or other valuable consideration for performing any
  2 32 acts of a real estate broker or salesperson to another
  2 33 licensed person knowing that such person will pay a portion or
  2 34 all of such commission or consideration to a person who is not
  2 35 licensed by the real estate commission.
  3  1    The bill also amends Code section 543B.34 by striking
  3  2 language which permits a real estate broker to pay a
  3  3 commission to a corporation which is wholly owned, or owned
  3  4 with a spouse, by a salesperson or broker associate employed
  3  5 by or otherwise associated with the broker.
  3  6    The bill creates new Code section 543B.60A and provides
  3  7 that a person or licensee shall not require that a person,
  3  8 party, client, or customer negotiate a listing or purchase
  3  9 agreement or contract of real estate through a particular
  3 10 broker or group of brokers, salesperson or group of
  3 11 salespersons, or agent or group of agents.
  3 12    A licensee who violates this section would be subject to
  3 13 license suspension or revocation.  Additionally, a person
  3 14 found guilty of a first offense would be guilty of a simple
  3 15 misdemeanor.  
  3 16 LSB 1665YH 78
  3 17 mj/cf/24.1

Text: HF00423                           Text: HF00425
Text: HF00400 - HF00499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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