SUBCHAPTER IGENERAL PROVISIONS
543B.1 License mandatory.
A person shall not, directly or indirectly, with the intention or upon the promise of receiving any valuable consideration,
offer, attempt, agree to perform, or perform any single act as a real estate broker whether as a part of a transaction or
as an entire transaction, or represent oneself as a real estate broker, broker associate, or salesperson, without first obtaining
a license and otherwise complying with the requirements of
this chapter.
[C31, 35, §1905-c23; C39, §
1905.20; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.1;
81 Acts, ch 54, §1]
543B.2 Individual licenses necessary.
A partnership, association, corporation, professional corporation, or professional limited liability company shall not be
granted a license, unless every member or officer of the partnership, association, corporation, professional corporation,
or professional limited liability company who actively participates in the brokerage business of the partnership, association,
corporation, professional corporation, or professional limited liability company holds a license as a real estate broker or
salesperson, and unless every employee who acts as a salesperson for the partnership, association, corporation, professional
corporation, or professional limited liability company holds a license as a real estate broker or salesperson. At least one
member or officer of each partnership, association, corporation, professional corporation, or professional limited liability
company shall be a real estate broker.
[C31, 35, §1905-c24; C39, §
1905.21; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.2;
81 Acts, ch 54, §2]
543B.3 Broker — definition.
As used in
this chapter,
“real estate broker” means a person acting for another for a fee, commission, or other compensation or promise, whether it be for all or part
of a person’s time, and who engages in any of the following acts:
1. Sells, exchanges, purchases, rents, or leases real estate.
2. Lists, offers, attempts, or agrees to list real estate for sale, exchange, purchase, rent, or lease.
3. Advertises or holds oneself out as being engaged in the business of selling, exchanging, purchasing, renting, leasing, or
managing real estate.
4. Negotiates, or offers, attempts, or agrees to negotiate, the sale, exchange, purchase, rental, or lease of real estate.
5. Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements on real estate.
6. Collects, or offers, attempts, or agrees to collect, rent for the use of real estate.
7. Assists or directs in the procuring of prospects, intended to result in the sale, exchange, purchase, rental, or leasing of
real estate.
8. Assists or directs in the negotiation of any transaction intended to result in the sale, exchange, purchase, rental, or leasing
of real estate.
9. Prepares offers to purchase or purchase agreements, listing contracts, buyer’s representation agreements, agency disclosures,
real property residential and agricultural rental agreements, real property commercial rental agreements of one year or less,
and groundwater hazard statements, including any modifications, amendments, or addendums to these specific documents.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.3]
95 Acts, ch 170, §2;
2002 Acts, ch 1031, §1; 2024 Acts, ch 1052, §1; 2024 Acts, ch 1072, §1, 3, 4; 2024 Acts, ch 1154, §26, 27, 30
543B.4 Real estate — definition.
As used in
this chapter,
“real estate” means real property wherever situated, and includes any and all leaseholds or any other interest or estate in land, and business
opportunities which involve any interest in real property.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.4]
543B.5 Other definitions.
As used in
this chapter, unless the context otherwise requires:
1. “Agency” means a relationship in which a real estate broker acts for or represents another by the other person’s express authority
in a transaction.
2. “Agency disclosure” means a written disclosure between a broker and a client which identifies the party the broker represents in a transaction.
3. “Appointed agent” means that affiliated licensee who is appointed by the designated broker of the affiliated licensee’s real estate brokerage
agency to act solely for a client of that brokerage agency to the exclusion of other affiliated licensees of that brokerage
agency.
4. “Branch office” means a real estate broker’s office other than a principal place of business.
5. “Broker associate” means a person who has a broker’s license but is licensed under, and employed by or otherwise associated with, another broker
as a salesperson.
6. “Brokerage” means the business or occupation of a real estate broker.
7. “Brokerage agreement” means a contract between a broker and a client which establishes the relationship between the parties as to, and the broker’s
compensation for, the brokerage services to be performed and contains the provisions required in section 543B.56A.
9. “Buyer’s representation agreement” means a brokerage agreement between a prospective buyer and a broker.
10. “Client” means a party to a transaction who has a brokerage agreement with a broker for brokerage services.
11. “Customer” means a consumer who is not being represented by a licensee under a brokerage agreement but for whom the licensee may perform
ministerial acts.
12. “Designated broker” means a licensee designated by a real estate brokerage agency to act for the agency in conducting real estate brokerage services.
13. “Inactive license” means either a broker or salesperson license certificate that is on file with the real estate commission in the commission
office and during which time the licensee is precluded from engaging in any of the acts of this chapter.
14. “Licensee” means a broker or a salesperson licensed pursuant to this chapter.
15. “Listing” is an agreement between a property owner and another person in which that person holds or advertises the property to the
public as being available for sale or lease.
16. a. “Material adverse fact” means an adverse fact that a party indicates is of such significance, or that is generally recognized by a competent licensee
as being of such significance to a reasonable party, that it affects or would affect the party’s decision to enter into a
contract or agreement concerning a transaction, or affects or would affect the party’s decision about the terms of the contract
or agreement. b. For purposes of this subsection, “adverse fact” means a condition or occurrence that is generally recognized by a competent licensee as resulting in any of the following: (1) Significantly and adversely affecting the value of the property.
(2) Significantly reducing the structural integrity of improvement to real estate.
(3) Presenting a significant health risk to occupants of the property.
17. “Negotiate” means to act as an intermediary between the parties to a transaction, and includes any of the following acts: a. Participating in the parties’ discussion of the terms of a contract or agreement concerning a transaction.
b. Completing, when requested by a party, appropriate forms or other written record to document the party’s proposal in a manner
consistent with the party’s intent.
c. Presenting to a party the proposals of other parties to the transaction and informing the party receiving a proposal of the
advantages and disadvantages of the proposal.
18. “Party” means a person seeking to sell, exchange, buy, or rent an interest in real estate, a business, or a business opportunity.
“Party” includes a person who seeks to grant or accept an option to buy, sell, or rent an interest in real estate.
19. “Person” means an individual, partnership, association, corporation, professional corporation, or professional limited liability company.
20. “Real estate team” means two or more licensees assigned to the same broker working together to provide real estate brokerage services and representing
themselves to the public as a team.
21. “Regular employee” means a person whose compensation is fixed in advance, who does not receive a commission, who works exclusively for the owner,
and whose total compensation is subject to state and federal withholding.
22. “Salesperson” means a person who is licensed under, and employed by or otherwise associated with, a real estate broker, as a selling, renting,
or listing agent or representative of the broker.
23. “Transaction” means the sale, exchange, purchase, or rental of, or the granting or acceptance of an option to sell, exchange, purchase,
or rent an interest in real estate.
[C31, 35, §1905-c25; C39, §
1905.22; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.5;
81 Acts, ch 54, §3]
C93, §543B.5
95 Acts, ch 17, §1; 95 Acts, ch 170, §4; 2005 Acts, ch 40, §1; 2006 Acts, ch 1055, §1; 2007 Acts, ch 13, §4; 2013 Acts, ch 30, §136; 2022 Acts, ch 1040, §1, 3; 2024 Acts, ch 1052, §2, 3
543B.6 Acts constituting dealing in real estate.
A person who, for another, in consideration of compensation, by fee, commission, salary, or otherwise, or with the intention
or in the expectation or upon the promise of receiving or collecting a fee, does, offers or attempts or agrees to do, engages
in or offers or attempts or agrees to engage in, either directly or indirectly, any single act or transaction contained in
the definition of a real estate broker as set out in
section 543B.3, whether the act be an incidental part of a transaction or the entire transaction is a real estate broker or real estate
salesperson within the meaning of
this chapter.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.6;
81 Acts, ch 54, §4]
543B.6A Wholesaling of residential property.
1. As used in this section: a. “Residential property” means real property that includes no less than one but no more than four dwelling units.
b. “Wholesaler” means a licensee, or a person represented by a licensee, who holds an equitable interest, but not legal title, in a residential
property for the purpose of selling the equitable interest to a buyer.
c. “Wholesaling” means the practice of a wholesaler entering into an assignable contract with an owner of residential property for the purpose
of marketing and selling the equitable interest of the residential property to another person.
2. A person must be licensed as a real estate broker under this chapter, or be represented by a real estate broker licensed under this chapter, to engage in wholesaling.
3. a. A wholesaler shall disclose all of the following information in writing to all parties to a wholesale transaction prior to
executing a contract to purchase or to convey an equitable interest to a buyer or other entity: (1) The legal identities of all parties to the wholesale transaction.
(2) An explanation of the wholesaling process, including but not limited to disclosure that the wholesaler holds an equitable
interest in the residential property that is the subject of the transaction and may not be able to convey title to the property.
b. A wholesaler shall provide a copy of an executed agency agreement to all parties to a wholesale transaction prior to executing
a contract to purchase or convey an equitable interest to a buyer or other entity.
c. Notwithstanding provisions to the contrary contained in a contract executed pursuant to this subsection, if a wholesaler fails to comply with the disclosure requirement under paragraph “a”, the seller or the buyer may cancel the contract at any time prior to the closing of the sale of the residential property
without penalty, and may retain any earnest money paid by the wholesaler.
4. An individual engaged in wholesaling in violation of this section shall be subject to a civil penalty of up to the greater of ten thousand dollars, or ten percent of the sale price of each
residential property for which the individual engaged in wholesaling in violation of this section.
5. The real estate commission shall adopt rules pursuant to chapter 17A necessary to implement and administer this section.
543B.7 Acts excluded from provisions — prohibited acts — penalties.
The provisions of
this chapter shall not apply to the sale, exchange, purchase, rental, lease, or advertising of any real estate in any of the following
cases:
1. A person who, as owner, spouse of an owner, general partner of a limited partnership, lessor, or prospective purchaser who
does not make repeated and successive transactions of a like character, or through another engaged by such person on a regular
full-time basis, buys, sells, manages, or otherwise performs any act with reference to property owned, rented, leased, or
to be acquired by such person.
2. By any person acting as attorney in fact under a duly executed and acknowledged power of attorney from the owner, to act on
behalf of the owner or lessor to authorize the final consummation and execution of any contract for the sale, leasing, or
exchange of real estate. The exclusion in this subsection does not apply to a person who, in the regular course of a business operated in the nature of a property management or brokerage
business, makes repeated and successive transactions of a like character for compensation.
3. A licensed attorney admitted to practice in Iowa acting solely as an incident to the practice of law.
4. A person acting as a receiver, trustee in bankruptcy, administrator, executor, guardian, or while acting under court order
or under authority of a deed of trust, trust agreement, or will.
5. The acts of an auctioneer who is not a licensee in conducting a public sale or auction, as provided in this subsection. a. The auctioneer’s role must be limited to establishing the time, place, and method of an auction; advertising the auction which
shall be limited to a brief description of the property for auction and the time and place for the auction; and crying the
property at the auction. (1) The auctioneer shall provide in any advertising the name and address of the real estate broker who is providing brokerage
services for the transaction and the name of the real estate broker, attorney, or closing company who is responsible for
closing the sale of the property.
(2) The real estate broker providing brokerage services shall be present at the time of the auction and, if found to be in violation
of this subsection, shall be subject to a civil penalty of one thousand dollars.
(3) If the auctioneer closes or attempts to close the sale of the property or otherwise engages in acts defined in sections 543B.3 and 543B.6, or paragraph “b” of this subsection, then the requirements of this chapter do apply to the auctioneer.
b. An auctioneer who is not a licensee is expressly prohibited from engaging in the following acts: (1) Contacting the public regarding real property beyond that which is permitted under this section with the purpose of securing or facilitating the sale of such real property.
(2) Independently showing property or hosting open houses.
(3) Making material and substantive representations regarding title, financing, or closings.
(4) Discussing or explaining a contract, lease, agreement, or other real estate document, other than the contract for conducting
the auction or other acts permitted by this subsection, with a prospective buyer, owner, or tenant of the real property, with the purpose of securing or facilitating the sale of
such real property.
(5) Collecting or holding deposit moneys, rent, other moneys, or anything of value received from the owner of real property or
from a prospective buyer or tenant, other than fees, commissions, or other consideration paid in exchange for conducting the
auction or other acts permitted by this subsection, with the purpose of securing or facilitating the sale of such real property.
(6) Providing owners of real property or prospective buyers or tenants with advice, recommendations, or suggestions regarding
the sale, purchase, exchange, rental, or leasing of real property, except with regard to acts permitted under this subsection.
(7) Falsely representing in any manner, orally or in writing, that the auctioneer is a licensee.
c. If an investigation pursuant to this chapter reveals that an auctioneer has violated this subsection or has assumed to act in the capacity of a real estate broker or real estate salesperson, the real estate commission shall
issue a cease and desist order, and shall impose a civil penalty of one thousand dollars for the first offense, and impose
a civil penalty of up to the greater of ten thousand dollars or ten percent of the real estate sales price for each subsequent
violation.
6. An isolated real estate rental transaction by an owner’s representative on behalf of the owner; such transaction not being
made in the course of repeated and successive transactions of a like character.
8. A person acting as a resident manager when such resident manager resides in the dwelling and is engaged in the leasing of
real property in connection with their employment.
9. An officer or employee of the federal government, state government, or a political subdivision of the state, in the conduct
of the officer’s or employee’s official duties.
10. A person employed by a public or private utility who performs an act with reference to property owned, leased, or to be acquired
by the utility employing that person, where such an act is performed in the regular course of, or incident to, the management
of the property and the investment in the property.
11. A nonlicensed employee of a licensee who provides information to another licensee concerning the sale, exchange, purchase,
rental, lease, or advertising of real estate which has been provided to the employee by the employer licensee either verbally
or in writing.
[C31, 35, §1905-c26; C39, §1905.23; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.7]
C93, §543B.7
95 Acts, ch 170, §5; 96 Acts, ch 1054, §1; 99 Acts, ch 82, §1; 2001 Acts, ch 83, §1; 2004 Acts, ch 1018, §1; 2005 Acts, ch 101, §1; 2006 Acts, ch 1055, §2; 2012 Acts, ch 1045, §1; 2013 Acts, ch 90, §165
543B.7A Exclusions — rental or leasing on behalf of another.
1. A person, limited liability company, or limited partnership who engages in any act under section 543B.3 that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or
limited liability company, and the person, limited liability company, or limited partnership maintains an ownership interest
in the partnership, limited partnership, corporation, or limited liability company.
2. A person who engages in any act under section 543B.3 that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or
limited liability company, and the person has an ownership interest in the partnership, limited partnership, corporation,
or limited liability company, which is a parent or subsidiary of, or under common control with the leasing partnership, limited
partnership, corporation, or limited liability company.
3. A person who is a nonlicensed employee of a real estate broker and who engages in advertising, showing, listing, collection
of rents and deposits, procuring of prospects, completing form agreements, and executing form agreements as it relates to
the rental of real estate under chapter 562A or 562B.
543B.8 Real estate commission created — staff.
1. A real estate commission is created within the department of inspections, appeals, and licensing. The commission consists
of four members licensed under this chapter and one member not licensed under this chapter and who shall represent the general public. Commission members shall be appointed by the governor subject to confirmation
by the senate.
2. No more than one member shall be appointed from a county. A commission member shall not hold any other elective or appointive
state or federal office. At least one of the licensed members shall be a licensed real estate salesperson, except that if
the licensed real estate salesperson becomes a licensed real estate broker during a term of office, that person may complete
the term, but is not eligible for reappointment on the commission as a licensed real estate salesperson. A licensed member
shall be actively engaged in the real estate business. Professional associations or societies of real estate brokers or real
estate salespersons may recommend the names of potential commission members to the governor. However, the governor is not
bound by their recommendations. A commission member shall not be required to be a member of any professional association or
society composed of real estate brokers or salespersons.
3. Appointments shall be for three-year terms and shall commence and end as provided in section 69.19. A member shall serve no more than three terms or nine years, whichever is less. Vacancies shall be filled for the unexpired
term by appointment of the governor and are subject to senate confirmation.
4. A majority of the commission members constitutes a quorum.
5. The director of the department of inspections, appeals, and licensing shall hire and provide staff to assist the commission
with implementing this chapter and shall hire a real estate education director to assist the commission in administering education programs for the commission.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.8;
81 Acts, ch 54, §5]
C93, §543B.8
2005 Acts, ch 41, §1; 2006 Acts, ch 1177, §38; 2018 Acts, ch 1041, §106; 2023 Acts, ch 19, §1668; 2024 Acts, ch 1170, §346
The real estate commission may adopt rules to carry out and administer the provisions of
this chapter. The commission may carry on a program of education of real estate practices and matters relating to real estate. The commission
shall adopt rules necessary to carry out the provisions of
chapter 558A relating to the disclosure of information before the transfer of real estate.
[C31, 35, §1905-c33; C39, §1905.30; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.9]
543B.10 and 543B.11 Reserved.
543B.12 Expenses of members — compensation.
Members of the real estate commission are entitled to be reimbursed for their actual expenses in the performance of duties
pertaining to their office within the limits of the funds appropriated to the commission. Each member of the commission may
also be eligible to receive compensation as provided in
section 7E.6.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.12]
The real estate commission shall adopt a seal with such design as the commission may prescribe engraved thereon, by which
it shall authenticate its proceedings. Copies of all records and papers in the office of the commission, duly certified and
authenticated by the seal of said commission, shall be received in evidence in all courts equally and with like effect as
the original. All records kept in the office of the commission under authority of
this chapter shall be open to public inspection under such reasonable rules and regulations as shall be prescribed by the commission.
[C31, 35, §1905-c28; C39, §1905.25; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.13]
543B.14 Fees and expenses.
All fees and charges collected by the real estate commission under
this chapter shall be deposited in the licensing and regulation fund created in
section 10A.507. Of the moneys deposited in the fund, twenty-five dollars from each real estate salesperson’s license fee and each broker’s
license fee shall be appropriated to the department of inspections, appeals, and licensing for the purpose of hiring and compensating
a real estate education director and regulatory compliance personnel. All expenses incurred by the commission under
this chapter, including compensation of staff assigned to the commission, shall be paid from funds appropriated for those purposes.
[C31, 35, §1905-c29; C39, §1905.26; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.14]
86 Acts, ch 1245, §724; 89 Acts, ch 292, §2; 90 Acts, ch 1168, §19; 90 Acts, ch 1261, §38; 92 Acts, ch 1070, §1
C93, §543B.14
94 Acts, ch 1107, §89; 2004 Acts, ch 1175, §29; 2013 Acts, ch 93, §1; 2023 Acts, ch 19, §1669; 2023 Acts, ch 108, §43
1. Except as provided in section 543B.20 an applicant for a real estate broker’s or salesperson’s license must be a person whose application has not been rejected
for licensure in this or any other state within twelve months prior to the date of application, and whose real estate license
has not been revoked in this or any other state within two years prior to date of application.
2. To qualify for a license as a real estate broker or salesperson a person shall be eighteen years of age or over. However,
an applicant is not ineligible because of citizenship, sex, race, religion, marital status, or national origin, although the
application form may require citizenship information.
3. a. An applicant for a real estate broker’s or salesperson’s license who has been convicted of an offense specified in this subsection shall not be considered for licensure until the following time periods have elapsed following completion of any applicable
period of incarceration, or payment of a fine or fulfillment of any other type of sentence: (1) For an offense which is classified as a felony, an offense including or involving forgery, embezzlement, obtaining money under
false pretenses, theft, arson, extortion, conspiracy to defraud, or other similar offense, or any other offense involving
a criminal breach of fiduciary duty, five years.
(2) For any offense not described in subparagraph (1) involving moral turpitude, one year.
b. After expiration of the time periods specified in paragraph “a”, an application shall be considered by the commission pursuant to subsection 6 and may be denied on the grounds of the conviction. An applicant may request a hearing pursuant to section 543B.19 in the event of a denial.
c. For purposes of this section, “convicted” or “conviction” means a conviction for an indictable offense and includes a court’s acceptance of a guilty plea, deferred judgment from the
time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment,
or other finding of guilt by a court of competent jurisdiction in this state, or in any other state, territory, or district
of the United States, or in any foreign jurisdiction. A copy of the record of conviction is conclusive evidence of such conviction.
4. An applicant for a real estate broker’s or salesperson’s license who has had a professional license of any kind revoked or
suspended or who has had any other form of discipline imposed, in this or any other jurisdiction, may be denied a license
by the commission on the grounds of the revocation, suspension, or other discipline.
5. A person who makes a false statement of material fact on an application for a real estate broker’s or salesperson’s license,
or who causes to be submitted, or has been a party to preparing or submitting any false application for such license, may
be denied a license by the commission on the grounds of the false statement or submission.
6. The commission, when considering the denial of a license pursuant to this section, shall consider the nature of the offense; any aggravating or extenuating circumstances which are documented; the time lapsed
since the revocation, conduct, or conviction; the rehabilitation, treatment, or restitution performed by the applicant; and
any other factors the commission deems relevant. Character references may be required but shall not be obtained from licensed
real estate brokers or salespersons.
7. To qualify for a license as a real estate broker, a person shall complete at least sixty contact hours of commission approved
real estate education within twenty-four months prior to taking the broker examination. This education shall be in addition
to the required salesperson prelicense course. The applicant shall have been a licensed real estate salesperson actively engaged
in real estate for a period of at least twenty-four months preceding the date of application, or shall have had experience
substantially equal to that which a licensed real estate salesperson would ordinarily receive during a period of twenty-four
months, whether as a former broker or salesperson, a manager of real estate, or otherwise.
8. A qualified applicant for a license as a real estate salesperson shall complete a commission approved short course in real
estate education of at least thirty hours during the twelve months prior to taking the salesperson examination.
9. An applicant for an initial real estate broker’s or salesperson’s license shall be subject to a national criminal history
check through the federal bureau of investigation. The commission shall request the criminal history check and shall provide
the applicant’s fingerprints to the department of public safety for submission through the state criminal history repository
to the federal bureau of investigation. The applicant shall authorize release of the results of the criminal history check
to the real estate commission. The applicant shall pay the actual cost of the fingerprinting and criminal history check, if
any. Unless the criminal history check was completed within the two hundred ten calendar days prior to the date the license
application is received by the real estate commission, the commission shall reject and return the application to the applicant.
The commission shall process the application but hold delivery of the license until the background check is complete. The
results of a criminal history check conducted pursuant to this subsection shall not be considered a public record under chapter 22.
[C31, 35, §1905-c30; C39, §
1905.27; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.15;
81 Acts, ch 54, §6, 7]
C93, §543B.15
95 Acts, ch 64, §1; 2002 Acts, ch 1031, §2; 2005 Acts, ch 36, §1; 2006 Acts, ch 1055, §3; 2007 Acts, ch 187, §1, 2; 2008 Acts, ch 1099, §1, 2; 2010 Acts, ch 1068, §1 – 3; 2017 Acts, ch 71, §1
543B.16 Application forms.
1. Every applicant for a license shall apply in writing upon blanks prepared or furnished by the real estate commission. The
real estate commission shall not require that a recent photograph of the applicant be attached to the application. The real
estate commission shall only require an applicant to disclose on the application criminal convictions for crimes classified
as indictable offenses.
2. Every applicant for a license shall furnish information setting forth the applicant’s present mailing address and electronic
mail address.
3. Every applicant for a salesperson’s license shall furnish a written statement by the designated broker whose service the applicant
is about to enter recommending that the license be granted to the applicant.
4. The application form prepared or furnished by the real estate commission must allow a person holding a real estate broker
license who is applying for a real estate salesperson license, or a person holding a real estate salesperson license who is
applying for a real estate broker license, to indicate whether the license being applied for shall become effective upon approval
of the application or upon the expiration of the applicant’s current license.
[C31, 35, §1905-c31; C39, §
1905.28; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.16;
81 Acts, ch 54, §8]
C93, §543B.16
543B.17 Reserved.
543B.18 Enforcement of rules.
The real estate commission is expressly vested with the power and authority to make and enforce any and all such reasonable
rules connected with the application for any license as shall be deemed necessary to administer and enforce the provisions
of
this chapter.
[C31, 35, §1905-c33; C39, §1905.30; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.18]
543B.19 License denied — hearing.
If the real estate commission, after an application in proper form has been filed with it, accompanied by the proper fee,
shall deny a license to the applicant, upon the applicant’s application in writing, and within a period of thirty days of
such denial, the applicant shall be entitled to a hearing as provided in
section 543B.35.
[C31, 35, §1905-c34; C39, §1905.31; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.19]
Examinations for a license shall be given as often as deemed necessary by the real estate commission, but no less than one
time per year. Each applicant for a license must pass an examination authorized by the commission and administered by the
commission or persons designated by the commission. The examination shall be of scope and wording sufficient in the judgment
of the commission to establish the competency of the applicant to act as a real estate broker or salesperson in a manner to
protect the interests of the public. An examination for a real estate broker shall be of a more exacting nature than that
for a real estate salesperson and require higher standards of knowledge of real estate. The identity of the persons taking
the examinations shall be concealed until after the examination has been graded. A person who fails to pass either examination
once may immediately apply to take the next available examination. Thereafter, the applicant may take the examination at the
discretion of the commission. An applicant who has failed either examination may request in writing information from the commission
concerning the applicant’s examination grade and subject areas or questions which the applicant failed to answer correctly,
except that if the commission administers a uniform, standardized examination, the commission is only required to provide
the examination grade and other information concerning the applicant’s examination results which is available to the commission.
[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.20;
81 Acts, ch 54, §9]
C93, §543B.20
543B.21 Nonresident license.
A nonresident of this state may be licensed as a real estate broker or a real estate salesperson, upon complying with all
requirements of law and with all the provisions and conditions of
this chapter relative to resident brokers or salespersons and the filing by the applicant with the real estate commission of a certification
from the state of original licensure signed by the duly qualified and authorized official or officials of that state that
the applicant is there currently licensed, that no charges against the applicant are there pending, and that applicant’s record
in that state justifies the issuance of a license to the applicant in Iowa. The commission may waive the requirement of an
examination in the case of a nonresident broker who is licensed under the laws of a state having similar requirements and
where similar recognition and courtesies are extended to licensed real estate brokers and salespersons of this state.
[C31, 35, §1905-c57; C39, §
1905.54; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.21;
81 Acts, ch 54, §10]
543B.22 Nonresident’s place of business.
A nonresident to whom a license is issued upon compliance with all the other requirements of law and provisions of
this chapter, is not required to maintain a definite place of business within this state. Provided that the nonresident, if a broker,
shall maintain an active place of business within the state of the nonresident’s domicile, and that the privilege of submitting
a certification of licensure certified to by the qualified and authorized official or officials of the state of original licensure,
in lieu of the recommendations and statements otherwise required, only applies to licensed real estate brokers and real estate
salespersons of those states under the laws of which similar recognition and courtesies are extended to licensed real estate
brokers and real estate salespersons of this state.
[C31, 35, §1905-c57; C39, §
1905.54; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.22;
81 Acts, ch 54, §11]
543B.23 Actions against nonresidents.
Every nonresident applicant, before the issuance of a license, shall file an irrevocable consent that suits and actions may
be commenced against such applicant in the proper court of any county of this state in which a cause of action may arise,
by the service of any process or pleadings authorized by the laws of this state on the chairperson of the real estate commission,
said consent stipulating and agreeing that such service of such process or pleadings on the commission shall be taken and
held in all courts to be as valid and binding as if due service had been made upon said applicant within the state of Iowa.
Said instrument containing such consent shall be authenticated by the seal thereof, if a corporation, or by the acknowledged
signature of a member or officer thereof, if otherwise. All such applications, except from individuals, shall be accompanied
by a duly certified copy of the resolutions of the proper officers, or managing board, authorizing the proper officer to execute
the same. In case any process or pleadings mentioned in the case are served upon the commission it shall be by duplicate copies,
one of which shall be filed in the office of the commission, and the other immediately forwarded by certified mail to the
main office of the applicant against whom or which said process or pleadings are directed.
[C31, 35, §1905-c57; C39, §1905.54; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.23]
543B.24 Custody of salesperson’s license.
The license of a real estate salesperson shall be delivered or mailed to the real estate broker by whom the real estate salesperson
is employed and shall be kept in the custody and control of the broker.
[C31, 35, §1905-c36; C39, §
1905.33; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.24;
81 Acts, ch 54, §12]
543B.25 Display of brokerage.
An individual licensee or real estate team shall conspicuously display the name of the brokerage immediately preceding or
immediately following the individual licensee’s name or real estate team name in any advertising or information made available
to the public.
543B.26 Reserved.
1. The real estate commission shall set fees for examination and licensing of real estate brokers and real estate salespersons.
The commission shall determine the annual cost of administering the examination and shall set the examination fee accordingly.
The commission shall set the fees for the real estate broker’s licenses and for real estate salesperson’s licenses based upon
the administrative costs of sustaining the commission. The fees shall include, but shall not be limited to, the costs for: a. Per diem, expenses, and travel for commission members.
b. Office facilities, supplies, and equipment.
c. Staff assistance.
d. Establishing and maintaining a real estate education program.
2. Notwithstanding subsection 1, a nonresident person seeking to procure a license pursuant to this chapter shall be charged a fee equal to the greater of the following:
b. A fee equal to the fee the nonresident person would be charged by such person’s state of residence if that person were a resident
of this state making application for a license in that state and that state charges a nonresident a fee which is greater than
that charged by that state to a resident of that state.
[C31, 35, §1905-c40; C39, §
1905.37; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.27;
81 Acts, ch 54, §14]
543B.28 Expiration of license.
Every license shall expire in multiyear intervals as determined by the real estate commission. A person who fails to renew
a real estate broker’s or real estate salesperson’s license by the expiration date shall be allowed to do so within thirty
days following its expiration, but the commission may assess a reasonable penalty. The commission upon the written request
of the applicant on forms prescribed by the commission, and payment of the fee, shall issue a new license for each ensuing
license period except as provided in
section 543B.15, in the absence of any reason or condition which might warrant the revocation of a license after a hearing as provided in
sections 543B.34 and
543B.35.
[C31, 35, §1905-c42; C39, §
1905.39; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.28;
81 Acts, ch 54, §15]
543B.29 Revocation or suspension.
1. A license to practice the profession of real estate broker and salesperson may be revoked or suspended when the licensee is
guilty of any of the following acts or offenses: a. Fraud in procuring a license.
b. Having made a false statement of material fact on an application for a real estate broker’s or salesperson’s license, or having
caused to be submitted, or having been a party to preparing or submitting any false application for such license.
c. Professional incompetency.
d. Knowingly making misleading, deceptive, untrue, or fraudulent representations in the practice of the profession or engaging
in unethical conduct or practice harmful or detrimental to the public. Proof of actual injury need not be established.
e. Habitual intoxication or addiction to the use of drugs.
f. Conviction of an offense included in section 543B.15, subsection 3. For purposes of this section, “conviction” means a conviction for an indictable offense and includes the court’s acceptance of a guilty plea, a deferred judgment from
the time of entry of the deferred judgment until the time the defendant is discharged by the court without entry of judgment,
or other finding of guilt by a court of competent jurisdiction. A copy of the record of conviction, guilty plea, deferred
judgment, or other finding of guilt is conclusive evidence. (1) A licensed real estate broker or salesperson shall notify the commission of the licensee’s conviction of an offense included
in section 543B.15, subsection 3, paragraph “a”, within ten days of the conviction. Notification of a conviction for an offense which is classified as a felony shall result
in the immediate suspension of a license pending the outcome of a hearing conducted pursuant to section 543B.35 to determine the nature of the disciplinary action, if any, the commission will impose on the licensee. The hearing shall
be conducted within thirty days of the licensee’s notification to the commission, and the commission’s decision shall be provided
to the licensee no later than thirty days following the hearing. The failure of the licensee to notify the commission of the
conviction within ten days of the date of the conviction is sufficient grounds for revocation of the license.
(2) The commission, when considering the revocation or suspension of a license pursuant to this paragraph “f”, shall consider the nature of the offense; any aggravating or extenuating circumstances which are documented; the time lapsed
since the conduct or conviction; the rehabilitation, treatment, or restitution performed by the licensee; and any other factors
the commission deems relevant. Character references may be required but shall not be obtained from licensed real estate brokers
or salespersons.
g. Fraud in representations as to skill or ability.
h. Use of untruthful or improbable statements in advertisements.
i. Willful or repeated violations of the provisions of this chapter.
k. Noncompliance with the trust account requirements under section 543B.46.
l. Revocation of any professional license held by the licensee in this or any other jurisdiction.
2. The revocation of a broker’s license shall automatically suspend every license granted to any person by virtue of the person’s
employment by the broker whose license has been revoked, pending a change of employer and the issuance of a new license. The
new license shall be issued upon payment of a fee in an amount determined by the commission based upon the administrative
costs involved, if granted during the same license period in which the original license was granted.
3. A real estate broker or salesperson who is an owner or lessor of property or an employee of an owner or lessor may have the
broker’s or salesperson’s license revoked or suspended for violations of this section or section 543B.34, except section 543B.34, subsection 1, paragraphs “d”, “e”, “f”, and “i”, with respect to that property.
4. A real estate broker’s or salesperson’s license shall be revoked following three violations of this section or section 543B.34 within a three-year period.
[C31, 35, §1905-c43; C39, §
1905.40; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.29;
81 Acts, ch 54, §16, 17]
C93, §543B.29
95 Acts, ch 64, §2, 3; 2008 Acts, ch 1099, §3; 2010 Acts, ch 1068, §4, 5; 2010 Acts, ch 1193, §62; 2011 Acts, ch 73, §1; 2013 Acts, ch 30, §137; 2017 Acts, ch 71, §3
543B.30 Actions — license as prerequisite.
A person engaged in the business or acting in the capacity of a real estate broker or a real estate salesperson within this
state shall not bring or maintain any action in the courts of this state for the collection of compensation for services performed
as a real estate broker or salesperson without alleging and proving that the person was a duly licensed real estate broker
or real estate salesperson at the time the alleged cause of action arose.
[C31, 35, §1905-c44; C39, §
1905.41; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.30;
81 Acts, ch 54, §18]
543B.31 Place of business — branch license.
Every real estate broker, except as provided in
section 543B.22, shall maintain a place of business in this state. A real estate broker may maintain more than one place of business within
the state and a broker may be the designated broker of more than one branch office within the state. If the real estate broker
maintains more than one place of business within the state, a duplicate license shall be issued to such broker for each branch
office maintained. A fee determined by the real estate commission shall be paid for each duplicate license.
[C31, 35, §1905-c45; C39, §1905.42; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.31]
C93, §543B.31
543B.32 Change of location.
Notice in writing, electronic or otherwise, shall be given to the real estate commission by each licensee of any change of
principal business location, whereupon the commission shall issue a new license for the unexpired period upon the payment
of a fee established by rule to cover the cost of issuing the license.
[C31, 35, §1905-c46; C39, §
1905.43; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.32;
81 Acts, ch 54, §19]
543B.33 Salespersons — change of employment or association.
When any real estate salesperson is discharged or terminates employment or association with the real estate broker by whom
the salesperson is employed, the real estate broker shall immediately deliver, mail, or electronically submit to the real
estate commission a copy of the real estate salesperson’s license on the reverse side of which the designated broker shall
set out the date of termination. The designated broker at the time of submitting a copy of the real estate salesperson’s license
to the commission shall address a communication to the last known residence address of the real estate salesperson stating
that a copy of the license has been delivered, mailed, or electronically submitted to the commission. A copy of the communication
to the real estate salesperson shall accompany the copy of the license when submitted to the commission. It is unlawful for
any real estate salesperson to perform any of the acts contemplated by
this chapter either directly or indirectly under authority of a license from and after the date of receipt of a copy of the license by
the commission. The commission shall, upon presentation of evidence by the salesperson that the salesperson has been employed
by or is associated with another broker, issue another license for the balance of the current license period showing each
change of employment or association. A fee as determined by the commission shall be charged for the issuance of the license.
Not more than one license shall be issued to any real estate salesperson for the same period of time.
[C31, 35, §1905-c47; C39, §
1905.44; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.33;
81 Acts, ch 54, §20]
C93, §543B.33
543B.34 Investigations by commission — licensing sanctions — civil penalty.
1. The real estate commission may upon its own motion and shall upon the verified complaint in writing of any person, if the
complaint together with evidence, documentary or otherwise, presented in connection with the complaint makes out a prima facie
case, request commission staff or any other duly authorized representative or designee to investigate the actions of any real
estate broker, real estate salesperson, or other person who assumes to act in such capacity within this state. The commission
may assess civil penalties against any person or entity, and may suspend or revoke a license issued under this chapter at any time if the licensee has by false or fraudulent representation obtained a license, or if the licensee or other person
assuming to act in the capacity of a real estate broker or real estate salesperson, except for those actions exempt pursuant
to section 543B.7, is found to be guilty of any of the following: a. Making any substantial misrepresentation.
b. Making any false promise of a character likely to influence, persuade or induce.
c. Pursuing a continued and flagrant course of misrepresentation, or making of false promises through agents or salespersons
or advertising or otherwise.
d. Acting for more than one party in a transaction without the knowledge of all parties for whom the licensee acts.
e. Accepting a commission or valuable consideration as a real estate broker associate or salesperson for the performance of any
of the acts specified in this chapter, from any person, except the broker associate’s or salesperson’s employer, who must be a licensed real estate broker. However,
a broker associate or salesperson may, without violating this paragraph, accept a commission or valuable consideration from
a corporation which is wholly owned, or owned with a spouse, by the broker associate or salesperson if the conditions described
in paragraph “i” are met.
f. Representing or attempting to represent a real estate broker other than the licensee’s employer, without the express knowledge
and consent of the employer.
g. Failing, within a reasonable time, to account for or to remit any moneys coming into the licensee’s possession which belong
to others.
h. Being unworthy or incompetent to act as a real estate broker or salesperson in such manner as to safeguard the interests of
the public.
i. (1) Paying a commission or other valuable consideration or any part of such commission or consideration for performing any of
the acts specified in this chapter to a person who is not a licensed broker or salesperson under this chapter or who is not engaged in the real estate business in another state or foreign country, provided that the provisions of this section shall not be construed to prohibit the payment of earned commissions or consideration to any of the following: (a) The estate or heirs of a deceased real estate licensee when such licensee had a valid real estate license in effect at the
time the commission or consideration was earned.
(b) A citizen of another country acting as a referral agent if that country does not license real estate brokers or salespersons
and if the Iowa licensee paying the commission or consideration obtains and maintains reasonable written evidence that the
payee is a citizen of the other country, is not a resident of this country, and is in the business of brokering real estate
in that other country.
(c) A corporation pursuant to subparagraph (2).
(2) A broker may pay a commission to a corporation which is wholly owned, or owned with a spouse, by a salesperson or broker associate
employed by or otherwise associated with the broker, if all of the following conditions are met: (a) The corporation does not engage in real estate transactions as a third-party agent or in any other activity requiring a license
under this chapter.
(b) The employing broker is not relieved of any obligation to supervise the licensee or any other requirement of this chapter or the rules adopted pursuant to this chapter.
(c) The employed broker associate or salesperson is not relieved from any personal civil liability for any licensed activities
by interposing the corporate form.
j. Failing, within a reasonable time, to provide information requested by the commission as the result of a formal or informal
complaint to the commission which would indicate a violation of this chapter.
k. Any other conduct, whether of the same or different character from that specified in this section, which demonstrates bad faith, or improper, fraudulent, or dishonest dealings which would have disqualified the licensee
from securing a license under this chapter.
2. Any unlawful act or violation of any of the provisions of this chapter by any real estate broker associate or salesperson, employee, or partner or associate of a licensed real estate broker, is
not cause for the revocation of the license of any real estate broker, unless the commission finds that the real estate broker
had guilty knowledge of the unlawful act or violation.
3. If an investigation pursuant to this section reveals that an unlicensed person has assumed to act in the capacity of a real estate broker or real estate salesperson,
the commission shall issue a cease and desist order, and shall impose a civil penalty of up to the greater of ten thousand
dollars or ten percent of the real estate sale price.
[C31, 35, §1905-c48; C39, §
1905.45; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79,
81, §117.34;
81 Acts, ch 54, §21]
C93, §543B.34
95 Acts, ch 170, §6; 99 Acts, ch 22, §1; 2004 Acts, ch 1005, §1, 2; 2005 Acts, ch 179, §72; 2011 Acts, ch 73, §3; 2017 Acts, ch 71, §7 – 9
543B.35 Hearing on charges.
The real estate commission shall, upon request of the applicant as provided in
section 543B.19, or before revoking any license, set the matter down for a hearing. At least twenty days prior to the date set for the hearing,
the commission shall send a written notice to the applicant or licensee containing an exact statement of the charges made
and the date and place of the hearing. At the hearing, an applicant or licensee shall have the opportunity to be heard in
person and by counsel. The written notice of hearing may be served by delivery personally to the applicant or licensee or
by mailing the notice by certified mail to the last known business address of such applicant or licensee. If such applicant
or licensee is a salesperson, the commission shall also notify the broker employing the salesperson, or into whose employ
the salesperson is about to enter, by mailing such notice by certified mail to the broker’s last known business address. The
hearing on the charges shall be at such time and place as the commission shall prescribe.
[C31, 35, §1905-c49; C39, §1905.46; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.35]
543B.36 Attendance of witnesses.
In the preparation and conducting of such hearings, the real estate commission shall have power to execute and sign subpoenas
to require the attendance and testimony of any witnesses and the producing of any papers or books. The commission may administer
oaths, examine witnesses, and take any evidence the commission deems pertinent to the determination of the charges. Any such
hearing may be held before two or more members of the commission as may be directed by the commission.
[C31, 35, §1905-c50; C39, §1905.47; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.36]
543B.37 Fees and mileage.
Any witnesses so subpoenaed shall be entitled to the same fees and mileage as is prescribed by law in judicial proceedings
in the courts of this state in civil cases.
[C31, 35, §1905-c51; C39, §1905.48; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.37]
543B.38 Request for witnesses.
Any party to any hearing before the real estate commission shall have the right to the attendance of witnesses in the party’s
behalf at such a hearing upon making a request thereof to the commission and designating the person or persons sought to be
subpoenaed.
[C31, 35, §1905-c52; C39, §1905.49; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.38]
543B.39 Disobedience to subpoena.
In case of a disobedience to a subpoena the real estate commission may invoke the aid of any court of competent jurisdiction
or judge thereof in requiring the attendance and testimony of witnesses and the production of papers; and such court may issue
an order requiring the persons to appear before the commission and give evidence or to produce papers as the case may be;
and any failure to obey such order may be punished as a contempt.
[C31, 35, §1905-c53; C39, §1905.50; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.39]
The testimony may be taken by deposition as in civil cases, and any person may be compelled to appear and depose in the same
manner as witnesses may be compelled to appear and testify as provided in
this chapter.
[C31, 35, §1905-c54; C39, §1905.51; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.40]
543B.41 Findings of fact.
If the majority of the real estate commission shall determine that any applicant is not qualified to receive a license, a
license shall not be granted to such applicant, and if the commission shall determine that any licensee is guilty of a violation
of any of the provisions of
this chapter, the license may be suspended or revoked. The commission, upon request of the applicant or licensee, shall furnish said applicant
or licensee with a definite statement of its findings of fact and its reason or reasons for refusing to grant the license
or for suspension of the rights of the licensee or for the revocation of the license, as the case may be. Judicial review
of action of the commission may be sought in accordance with the terms of the Iowa administrative procedure Act,
chapter 17A.
[C31, 35, §1905-c56; C39, §1905.53; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.41]
543B.42 List of licensees.
The real estate commission shall at least annually prepare a list of the names and addresses of all licensees licensed by
it under
this chapter, and of all persons whose licenses have been suspended or revoked within one year; together with other information relative
to the enforcement of
this chapter as it deems of interest to the public. The lists shall be mailed by the commission to any person in this state upon request.
[C31, 35, §1905-c58; C39, §1905.55; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.42]
[C31, 35, §1905-c59; C39, §1905.56; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.43]
C93, §543B.43
543B.44 Complaints referred to court.
The real estate commission may refer a complaint for violation of
section 543B.1 before any court of competent jurisdiction. The commission may also take the necessary legal steps through the proper legal
officers of this state to enforce the provisions of and collect the penalties provided in
this chapter.
[C31, 35, §1905-c60; C39, §1905.57; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.44]
543B.45 Dual contracts for sale of real property.
1. A person licensed under this chapter shall not knowingly make, issue, deliver, receive, or permit the use of two or more written or oral contracts for the purpose
of sale concerning the same parcel of real estate one of which is not made known to the prospective lender or loan guarantor
to enable the purchaser to obtain a larger loan than the true sales price would allow or to enable the purchaser to qualify
for a loan which the purchaser otherwise could not obtain.
2. Any person who shall violate the provisions of this section shall be guilty of a fraudulent practice.
1. Each real estate broker who is in the practice of depositing funds in a trust account shall maintain a common trust account
in a federally insured depository institution for the deposit of all down payments, earnest money deposits, or other trust
funds received by the broker or the broker’s salespersons on behalf of the broker’s principal, except that a broker acting
as a salesperson shall deposit these funds in the common trust account of the broker for whom the broker acts as salesperson.
The account shall be an interest-bearing account. The interest on the account shall be transferred quarterly to the treasurer
of state and transferred to the Iowa finance authority for deposit in the housing trust fund established in section 16.181 unless there is a written agreement between the buyer and seller to the contrary. The broker shall not benefit from interest
received on funds of others in the broker’s possession. A broker who is not in the practice of depositing funds in a trust
account shall not be required to maintain a common trust account pursuant to this section.
2. Each broker required to maintain a trust account pursuant to this section shall notify the real estate commission of the name of the federally insured depository institution in which a trust account
is maintained and also the name of the account on forms provided therefor.
3. Each broker required to maintain a trust account pursuant to this section shall authorize the real estate commission to examine each trust account and shall obtain the certification of the federally
insured depository institution attesting to each trust account and consenting to the examination and audit of each account
by a duly authorized representative of the commission. The certification and consent shall be furnished on forms prescribed
by the commission. This subsection does not apply to an individual farm account maintained in the name of the owner or owners for the purpose of conducting
ongoing farm business whether it is conducted by the farm owner or by an agent or farm manager when the account is part of
a farm management agreement between the owner and agent or manager. This subsection also does not apply to an individual property management account maintained in the name of the owner or owners for the purpose
of conducting ongoing property management whether it is conducted by the property owner or by an agent or manager when the
account is part of a property management agreement between the owner and agent or manager.
4. Each broker required to maintain a trust account pursuant to this section shall only deposit trust funds as directed by the principal of a transaction constituting dealing in real estate as described
in section 543B.6 in the common trust account and shall not commingle the broker’s personal funds or other funds in the trust account with
the exception that a broker may deposit and keep a sum not to exceed one thousand dollars in the account from the broker’s
personal funds, which sum shall be specifically identified and deposited to cover bank service charges relating to the trust
account.
5. A broker may maintain more than one trust account provided the commission is advised of said account as specified in subsections 2 and 3 above.
6. The commission shall verify on a test basis, a random sampling of the brokers, corporations, professional corporations, professional
limited liability companies, and partnerships for their trust account compliance. The commission may upon reasonable cause,
or as a part of or after an investigation, request or order a special report.
7. The examination of a trust account shall be conducted by the commission or the commission’s authorized representative.
8. The commission shall adopt rules to ensure implementation of this section.
[C71, 73, 75, 77, 79,
81, §117.46;
81 Acts, ch 54, §23;
82 Acts, ch 1067, §1]
C93, §543B.46
93 Acts, ch 30, §2; 93 Acts, ch 175, §19; 95 Acts, ch 170, §7; 96 Acts, ch 1027, §1; 97 Acts, ch 23, §67; 97 Acts, ch 214, §12; 2007 Acts, ch 13, §6; 2008 Acts, ch 1097, §3; 2012 Acts, ch 1017, §150; 2013 Acts, ch 30, §138; 2014 Acts, ch 1092, §121; 2017 Acts, ch 71, §10; 2018 Acts, ch 1026, §160
543B.47 Insurance requirement.
1. The real estate commission shall adopt rules requiring as a condition of licensure that all real estate licensees, except
those who hold inactive licenses, carry errors and omissions insurance covering all activities contemplated under this chapter. The rules shall provide for administration of the insurance requirements of this section within the multiyear licensing structure required by section 543B.28. However, the rules shall require licensees to submit evidence of compliance with this section within twenty calendar days of the commission’s request, which may be made on a test basis, a random basis, or upon reasonable
cause to question a licensee’s compliance.
2. The commission shall contract with an insurance provider for a group policy under which coverage is available to all licensees,
and shall maintain coverage with the contracted provider unless the commission determines that continuing the contract is
not reasonably practical. The contract shall be solicited by competitive, sealed bid.
3. The group policy shall be made available to all licensees and shall not include any right on the part of the insurance provider
to cancel coverage for a licensee.
4. A licensee shall have the option of obtaining insurance independently, if the coverage contained in an independently obtained
policy complies with the minimum requirements adopted by rule of the commission.
5. The commission shall determine the terms and conditions of coverage required by subsection 1, including but not limited to the minimum limits of coverage, the permissible deductible, and the permissible exceptions.
6. Failure of a license applicant or licensee to carry the errors and omissions insurance required by this section, or to timely submit proof of coverage upon commission request, shall be grounds for the denial of an application for licensure,
the denial of an application to renew a license, or the suspension or revocation of a license.
C91, §117.47
C93, §543B.47
543B.48 Civil penalty amount.
Notwithstanding
section 272C.3, licensee discipline may include a civil penalty not to exceed two thousand five hundred dollars per violation.
543B.49 Injunctive relief.
1. In addition to the penalty and complaint provisions of sections 543B.43, 543B.44, and 543B.48, an injunction may be granted through an action in district court to prohibit a person from engaging in an activity which
violates the provisions of section 543B.1. The court shall grant a permanent or temporary injunction if it appears to the court that a violation has occurred or is
imminently threatened. The plaintiff is not required to show that the violation or threatened violation would greatly or irreparably
injure the plaintiff. No bond shall be required of the plaintiff unless the court determines that a bond is necessary in the
public interest. The action for injunctive relief may be brought by an affected person. For the purposes of this section, “affected person” means any person directly impacted by the actions of a person suspected of violating the provisions of section 543B.1, including but not limited to the commission created in section 543B.8, a person who has utilized the services of a person suspected of violating the provisions of section 543B.1, or a private association composed primarily of members practicing a profession for which licensure is required pursuant
to this chapter.
2. If successful in obtaining injunctive relief, the affected person shall be entitled to actual costs and attorney fees. For
the purposes of this section, “actual costs” means those costs other than attorney fees which were actually incurred in connection with the action, including but not
limited to court and witness fees, investigative expenses, travel expenses, legal research expenses, and other related fees
and expenses.
The real estate commission shall meet as necessary at the location of the commission’s principal office and shall elect a
chairperson annually. A majority of the members of the commission shall constitute a quorum.
[C75, 77, 79, 81, §117.50]
The public members of the real estate commission shall be allowed to participate in administrative, clerical, or ministerial
functions incident to giving the examination, but shall not determine the content of the examination or determine the correctness
of the answers.
[C75, 77, 79, 81, §117.51]
543B.52 Disclosure of confidential information.
1. The commission shall not disclose information relating to the following: a. The contents of the examination.
b. The examination results other than final score except for information about the results of an examination which is given to
the person who took the examination.
2. A member of the commission who willfully communicates or seeks to communicate such information, and any person who willfully
requests, obtains, or seeks to obtain such information, is guilty of a simple misdemeanor.
[C75, 77, 79, 81, §117.52]
543B.53 Application of chapter.
The provisions of
this chapter which require successful completion of a real estate education course before being licensed as a real estate salesperson
shall not apply to the issuance of new licenses pursuant to
section 543B.28.
543B.54 Real estate education fund.
Repealed by 2013 Acts, ch 93, §3.
543B.55 Disclosure of relationship.
The real estate commission shall adopt rules requiring that each real estate broker or salesperson in a real estate transaction
disclose in writing the broker’s or salesperson’s agency relationship with the buyer or seller in the transaction.
C91, §117.55
C93, §543B.55