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Senate File 404

Partial Bill History

Bill Text

PAG LIN
  1  1                                     SENATE FILE 404
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO A RELATIONSHIP INVOLVING REAL ESTATE LICENSEES
  1  5    AND REAL ESTATE CLIENTS, AND ESTABLISHING RESTRICTIONS
  1  6    ON THE PAYMENT OF COMMISSIONS OR OTHER CONSIDERATION.  
  1  7 
  1  8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  9 
  1 10    Section 1.  Section 543B.34, subsection 9, Code 1999, is
  1 11 amended to read as follows:
  1 12    9.  a.  Paying a commission or other valuable consideration
  1 13 or any part of a such commission or consideration for
  1 14 performing any of the acts specified in this chapter to a
  1 15 person who is not a licensed broker or salesperson under this
  1 16 chapter or who is not engaged in the real estate business in
  1 17 another state or foreign country, or paying a commission or
  1 18 other valuable consideration for performing any of the acts
  1 19 specified in this chapter to a licensee knowing that the
  1 20 licensee will pay a portion of or all of such commission or
  1 21 consideration to a person or party who is not licensed
  1 22 pursuant to this chapter, provided that the provisions of this
  1 23 section shall not be construed to prohibit the payment of
  1 24 earned commissions or consideration to any of the following:
  1 25    (1)  The estate or heirs of a deceased real estate licensee
  1 26 when such licensee had a valid real estate license in effect
  1 27 at the time the commission or consideration was earned.
  1 28    (2)  A citizen of another country acting as a referral
  1 29 agent if that country does not license real estate brokers and
  1 30 if the Iowa licensee paying the commission or compensation
  1 31 consideration obtains and maintains reasonable written
  1 32 evidence that the payee is a citizen of the other country, is
  1 33 not a resident of this country, and is in the business of
  1 34 brokering real estate in that other country.
  1 35    (3)  A corporation pursuant to paragraph "b".
  2  1    b.  A broker may pay a commission to a corporation which is
  2  2 wholly owned, or owned with a spouse, by a salesperson or
  2  3 broker associate employed by or otherwise associated with the
  2  4 broker, if all of the following conditions are met:
  2  5    (1)  The corporation does not engage in real estate
  2  6 transactions as a third-party agent or in any other activity
  2  7 requiring a license under this chapter.
  2  8    (2)  The employing broker is not relieved of any obligation
  2  9 to supervise the employed licensee or any other requirement of
  2 10 this chapter or the rules adopted pursuant to this chapter.
  2 11    (3)  The employed broker associate or salesperson is not
  2 12 relieved from any personal civil liability for any licensed
  2 13 activities by interposing the corporate form.
  2 14    Sec. 2.  NEW SECTION.  543B.60A  RESTRICTIONS ON PAYMENT OF
  2 15 COMMISSION TO OTHERS.
  2 16    1.  A licensee shall not require that a person, party,
  2 17 client, or customer negotiate a listing or purchase agreement
  2 18 or contract of real estate through a particular broker or
  2 19 group of brokers, salesperson or group of salespersons, or
  2 20 agent or group of agents.
  2 21    2.  A licensee shall not pay a commission, or portion of a
  2 22 commission, or other valuable consideration to a person or
  2 23 other licensee as described in subsection 1.
  2 24    3.  A licensee shall not request a referral fee after a
  2 25 bona fide offer to purchase is accepted.
  2 26    4.  A licensee shall not request a referral fee after a
  2 27 bona fide listing agreement has been signed.
  2 28    5.  A violation of this section shall be considered a
  2 29 violation under section 543B.34, subsection 4.  In addition to
  2 30 any other penalty applicable, a license to practice the
  2 31 profession of real estate broker or salesperson may be revoked
  2 32 or suspended for a violation of this section.  
  2 33 
  2 34 
  2 35                                                             
  3  1                               MARY E. KRAMER
  3  2                               President of the Senate
  3  3 
  3  4 
  3  5                                                             
  3  6                               RON J. CORBETT
  3  7                               Speaker of the House
  3  8 
  3  9    I hereby certify that this bill originated in the Senate and
  3 10 is known as Senate File 404, Seventy-eighth General Assembly.
  3 11 
  3 12 
  3 13                                                             
  3 14                               MICHAEL E. MARSHALL
  3 15                               Secretary of the Senate
  3 16 Approved                , 1999
  3 17 
  3 18 
  3 19                               
  3 20 THOMAS J. VILSACK
  3 21 Governor
     
Text: SF00403                           Text: SF00405
Text: SF00400 - SF00499                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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