CHAPTER 7
OFFICES AND MANAGEMENT
[Prior to 9/4/02, see 193E—Ch 1 and 193E—2.14(543B) to 193E—2.17(543B)]
193E—7.1(543B) Real estate offices and licenses required.
	7.1(1) Every Iowa resident real estate firm or self-employed broker shall maintain an office for the transaction of business in the state of Iowa, which shall be open to the public during business hours or by appointment.
A nonresident Iowa real estate broker or firm is not required to maintain a definite place of business within Iowa, provided the nonresident broker or firm maintains an active place of business within the state or jurisdiction of domicile as provided in Iowa Code section 543B.22.
	7.1(2) Sharing office space. It shall be acceptable for more than one broker to operate in an office at the same address if each broker maintains all records and trust accounts separate from all the others. Each broker shall operate under a business name, which clearly identifies the broker as an individual within the group of brokers.
	7.1(3) Branch office. A licensed Iowa real estate firm or sole-proprietor broker maintaining a branch office shall display a commission-issued branch office license in that location. The branch office license is issued in the name of the firm or sole-proprietor broker and shall include the license number and the physical address of the branch office. The branch office license shall be issued at a reduced fee and shall have the same expiration date of the primary license.
	7.1(4) When a real estate brokerage firm closes, the principal broker or a designated representative shall follow procedures as provided in 193E—Chapter 8.
	7.1(5) A licensed officer of a corporation or partnership may be licensed as an officer or partner of more than one corporation or partnership. The main or primary license for which the full license fee was paid must be maintained in active status to keep any additional licenses that were issued at a reduced fee active and in effect. A broker officer licensed to more than one corporation or partnership may be the designated broker of more than one corporation or partnership.
Continuing education is required only for renewal of the main or primary license.
	7.1(6) When  a branch office closes, notice in writing, electronic or otherwise, shall be given to the commission.
	7.1(7) Each actively licensed broker associate and salesperson shall be licensed under a broker.
	7.1(8) A broker associate or salesperson shall not be licensed under more than one broker during the same period of time.
[ARC 3500C, IAB 12/6/17, effective 1/10/18]
193E—7.2(543B) Notification required.
	7.2(1) Partnerships, associations, and corporations are required to obtain a license before acting as a real estate broker. Failure of a broker to inform the commission in writing, electronic or otherwise, within five working days that the broker has formed a new partnership, association or corporation, or has changed the type of the business, is prima facie evidence of a violation of Iowa Code section 543B.1.
	7.2(2) Failure of a broker to inform the commission in writing, electronic or otherwise, within five working days of a change in type of license as sole-proprietor broker, partner, officer or broker associate is prima facie evidence of a violation of Iowa Code sections 543B.1 and 543B.29(1).
	7.2(3) Failure of a broker to inform the commission in writing, electronic or otherwise, within five working days of a change of address of a proprietorship, partnership, or corporation is prima facie evidence of a violation of Iowa Code section 543B.32.
	7.2(4) Failure of a broker to return a license or make a reasonable effort to deliver, mail, or electronically submit the license to the commission office to ensure that it is received within 72 hours after a salesperson or broker associate is discharged or terminates employment is prima facie evidence of a violation of Iowa Code section 543B.33.
	7.2(5) Failure of a licensee to inform the commission in writing, electronic or otherwise, within five working days of a change of residence address or mailing address is prima facie evidence of a violation of Iowa Code sections 543B.16 and 543B.18.
	7.2(6) When a broker is notified that a license is inactive, suspended, revoked, or canceled, the broker shall make a reasonable effort to deliver, mail, or electronically submit the license to ensure that the license is received by the commission within 72 hours after notification.
[ARC 3500C, IAB 12/6/17, effective 1/10/18]
193E—7.3(543B) Suspended and revoked licenses. A suspended or revoked license must be returned to the commission as provided in Iowa Code section 543B.33 and subrule 7.2(6).
	7.3(1) As of the effective date of a suspended or revoked license, the licensee shall not engage in any activity that requires a real estate license as defined in Iowa Code chapter 543B.
	7.3(2) When a sole-proprietor broker, corporation or partnership license is suspended or revoked, all licensees associated with or assigned to that sole-proprietor broker, corporation or partnership shall automatically be placed on inactive status for the duration of the suspension or revocation, unless transferred to another sole-proprietor broker, corporation or partnership.
	a. 	The broker whose license is suspended or revoked shall return, before or immediately upon the effective date of the suspension or revocation, all licenses that are assigned to or associated with the broker or the firm as provided in Iowa Code section 543B.33 and subrule 7.2(6).
	b. 	When a suspension or revocation is determined, the commission shall also determine if the corporation or partnership license shall be automatically canceled.
	c. 	If the broker whose license is suspended or revoked is the only licensed broker officer of a corporation, the corporation license will automatically be canceled.
	7.3(3) A licensee whose license is suspended or revoked may receive compensation during the period of suspension or revocation only for those acts performed and for which compensation was earned when the person was actively licensed prior to the effective date of the suspension or revocation.
This rule does not determine if a licensee is entitled to compensation; such entitlement would depend upon the licensee’s written employment or association agreement with the former affiliated broker and a matter of contract law.
	7.3(4) All listings and property management agreements must be canceled by the broker whose license is suspended or revoked upon receipt of the order of revocation or suspension and prior to the effective date of the order.
	a. 	The seller or landlord, or buyer or tenant, shall be advised that the seller or landlord, or buyer or tenant, may enter into a listing or brokerage agreement with another broker of choice.
	b. 	A broker whose license is suspended or revoked may not sell or assign listings or management agreements to another broker without the written consent of the owner of the property, and any sale or assignment of listings or management agreements must be completed prior to the effective date of the order.
	7.3(5) A broker whose license is suspended or revoked may not finalize any pending closings. This responsibility must be given to another broker, an attorney, a financial institution, or an escrow company.
	a. 	Transfer of this responsibility shall be done with the written approval of all parties to the transaction.
	b. 	All parties to the transaction shall be advised of the facts concerning the situation and shall be provided the name, address, and telephone number of the responsible entity where all trust and escrow moneys will be held, with the written approval of all parties.
	7.3(6) A broker whose license is suspended or revoked is prohibited from advertising real estate in any manner as a broker. All advertising, including but not limited to signs, must be removed or covered within ten calendar days after the effective date of the suspension or revocation.
The real estate brokerage telephone must not be answered in any manner to indicate the broker is active in the real estate business.
[ARC 3500C, IAB 12/6/17, effective 1/10/18]
193E—7.4(543B) Prohibited practices. For purposes of this rule only the term “real estate licensee” shall mean “real estate broker or real estate salesperson” as defined in Iowa Code chapter 543B. A licensee participating in any of the practices described in this rule shall be deemed to be engaging in unethical conduct and a practice harmful or detrimental to the public within the meaning of Iowa Code section 543B.29(1).
	7.4(1) An arrangement in which a real estate licensee requires or conditions, in connection with the sale of a lot, that the real estate licensee receive from the homebuilder an exclusive right to sell or list the house to be constructed on the lot.
	7.4(2) An arrangement in which a real estate licensee agrees to sell lots on behalf of a developer on the condition that the developer require each homebuilder purchasing such a lot to list the house to be constructed with the real estate licensee.
	7.4(3) An arrangement in which a real estate licensee, in connection with the sale of a lot to a consumer or homebuilder, requires the consumer or homebuilder to pay a commission on the value of the house to be constructed on the lot.
	7.4(4) Any arrangement pursuant to which the sale of real estate to a prospective purchaser is conditioned upon the listing of real estate owned by the prospective purchaser with the real estate licensee.
	7.4(5) An arrangement in which a real estate licensee, in connection with the sale of a lot to a consumer, requires the consumer to use a specified homebuilder to build the house to be constructed on the lot.
	7.4(6) Any arrangement in which a real estate licensee enters into an agreement with a mortgage broker, bank, savings and loan, or other financial institution pursuant to which the making of a loan is directly or indirectly conditioned upon payment of a real estate commission to the real estate licensee.
	7.4(7) Any arrangement pursuant to which a real estate licensee who is affiliated with a mortgage broker, bank, savings and loan association or other financial institution benefits from the practice by the affiliated financial institution of granting mortgage loans or any other loan or financial services or the availability of other benefits directly or indirectly conditioned upon the use of the real estate services of the affiliated licensee.
	7.4(8) Any arrangement prohibited by Iowa Code section 543B.60A. An Iowa licensee is prohibited from participating in any such marketing plan with a person who is licensed or otherwise authorized to engage in the real estate business in another state or foreign country.
This rule is intended only to regulate the licensing of real estate licensees in the state of Iowa. This rule is not intended nor should it be interpreted to supplant Iowa Code chapter 553 (The Iowa Competition Law) or as authorizing or approving business practices which are not specifically prohibited in this rule. The commission, upon receipt of any formal written complaint filed against a licensee alleging a violation of this rule, shall, in addition to evaluating such complaint for license revocation or suspension under Iowa Code chapter 543B, forward a copy of such complaint to the attorney general of the state of Iowa and to the United States Attorney for investigation and appropriate action.
193E—7.5(543B) Loan finder fees. The acceptance of a fee or anything of value by a real estate licensee from a lender or financing company for the referral or steering of a client to the lender for a loan shall be considered not in the best interest of the public and shall constitute a violation of Iowa Code sections 543B.29(3) and 543B.34(8).
193E—7.6(543B) Lotteries prohibited. Licensees shall not engage in lotteries and schemes of sales involving selling of certificates, chances or other devices, whereby the purchaser is to receive property to be selected in an order to be determined by chance or by some means other than the order of prior sale, or whereby property more or less valuable will be secured according to chance or the amount of sales made, or whereby the price will depend upon chance or the amount of sales made, or whereby the buyer or tenant may or may not receive, rent, or lease any property. Such activities are declared to be methods by reason of which the public interests are endangered.
193E—7.7(543B) Broker required to furnish progress report. After an offer to buy has been made by a buyer and accepted by a seller, either party may demand at reasonable intervals and the broker shall furnish a detailed statement showing the current status of the transaction.
193E—7.8(543B) Disclosure of licensee interest, acting as a principal, and status as a licensee. A licensee shall not act in a transaction on the licensee’s own behalf, on behalf of the licensee’s immediate family, including but not limited to a spouse, parent, child, grandparent, grandchild, brother, or sister, or on behalf of the brokerage, or on behalf of an organization or business entity in which the licensee has an interest, including an affiliated business arrangement as defined in 7.9(1), unless the licensee provides written disclosure of that interest to all parties to the transaction. Disclosure required under this rule must be made at the time of or prior to the licensee’s providing specific assistance to the party or parties to the transaction. Copies of the disclosure may be provided in person or by mail, as soon as reasonably practical. If no specific assistance is provided, disclosure shall be provided prior to the parties’ forming a legally binding contract, either prior to an offer made by the buyer or tenant or prior to an acceptance by the seller or landlord, whichever comes first.
	7.8(1) Licensee acting as a principal. A licensee shall not acquire any interest in any property, directly or indirectly, nor shall the licensee sell any interest in which the licensee, directly or indirectly, has an interest without first making written disclosure of the licensee’s true position clear to the other party. Satisfactory proof of this disclosure must be produced by the licensee upon request of the commission. Whenever a licensee is in doubt as to whether an interest, relationship, association, or affiliation requires disclosure under this rule, the safest course of action is to make the written disclosure.
	7.8(2) Status as a licensee. Before buying, selling, or leasing real estate as described above, the licensee shall disclose in writing any ownership, or other interest, which the licensee has or will have and the licensee’s status to all parties to the transaction. An inactive status license shall not exempt a licensee from providing the required disclosure.
	7.8(3) Dual capacity. The licensee shall not act in a dual capacity of agent and undisclosed principal in any transaction.
193E—7.9(543B) Financial interest disclosure required. A licensee must disclose to a client any financial interest the licensee or brokerage has in any business entity to which the licensee or brokerage refers a client for any service or product related to the transaction. A licensee who has any affiliated business arrangement or relationship with any provider of settlement services, as defined below, and directly or indirectly refers business to that provider or affirmatively influences the selection of that provider shall disclose the arrangement and any financial interest to the person whose business is being referred or influenced. The required disclosure shall be acknowledged by the separate signatures of the person or persons whose business is being referred or influenced. The disclosure shall be given and signed before or at substantially the same time that the business is referred or the provider is selected. If the disclosure is made on a separate form, the licensee shall retain a copy of the signed disclosure in the transaction file for a period of five years after the execution.
	7.9(1) An affiliated business arrangement shall mean an arrangement in which a real estate licensee, or an associate of a real estate licensee, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1 percent in the business entity providing the service or product.
	a. 	An associate means one who has one or more of the following relationships with a real estate licensee:
	(1)	A spouse, parent, or child of a real estate licensee;
	(2)	A corporation or business entity that controls, is controlled by, or is under common control with a real estate licensee;
	(3)	An employee, officer, director, partner, franchiser or franchisee of a real estate licensee; or
	(4)	Anyone who has an agreement, arrangement or understanding with a real estate licensee or brokerage, the purpose or substantial effect of which is to enable the real estate licensee to refer for any service, settlement service, or business or product related to the transaction and to benefit financially from the referral of that business.
	b. 	Settlement services include services in connection with a real estate transaction including, but not limited to, the following: mortgage or other financing; title searches; title examinations; the provisions of title certificates, title insurance, hazard insurance; services rendered by an attorney; the preparation of documents; property surveys; the rendering of credit reports or appraisals; pest, fungus, mechanical or other inspections; services rendered by a real estate agent or broker; and the handling of the processing and closing of settlement.
	c. 	An affiliated business arrangement shall not include an arrangement in which a real estate licensee, or an associate of a real estate licensee, gives or pays an undisclosed commission in a transaction to any other licensee for a referral to provide real estate brokerage services, including franchise affiliates, if there is no direct or beneficial ownership interest of more than 1 percent in the business entity providing the service. Referral fees or commissions paid by a licensee to another licensee under these conditions are exempted from the disclosure requirement.
	7.9(2) No particular language is required for the disclosure. To assist real estate licensees and the public, the commission recommends the following sample language:

DISCLOSURE OF REFERRAL OF BUSINESS
I understand that ___(name of real estate licensee)____ has an affiliate relationship with or owns an interest in ____(name of company to which business is being referred)___ and is also recommending that I employ this company for _______________(type of service)_______________.
I understand that ____(name of real estate licensee)_____ may earn financial benefits from my use of this company. I understand that I am not obligated to use this company, and may select a different company if I wish to do so. This form has been fully explained to me and I have received a copy.	
 	 	 	
(Date)	 	(Signature of person whose business is being referred)	
 	
	7.9(3) The term “franchise” shall have the same meaning as set forth in 24 CFR Chapter XX, Section 3500.15(c) as of April 1995.
	7.9(4) The term “affiliate relationship” means the relationship among business entities where one entity has effective control over the other by virtue of a partnership or other agreement or is under common control with the other by a third entity or where an entity is a corporation related to another corporation as parent to subsidiary by an identity of stock ownership.
	7.9(5) The term “beneficial ownership” means the effective ownership of an interest in a provider of settlement services or the right to use and control the ownership interest involved even though legal ownership or title may be held in another person’s name.
	7.9(6) The term “direct ownership” means the holding of legal title to an interest in a provider of settlement services except where title is being held for the beneficial owner.
	7.9(7) The term “control” as used in the definition of “affiliate relationship” means that a person:
	a. 	Is a general partner, officer, director, or employer of another person;
	b. 	Directly or indirectly or acting in concert with others, or through one or more subsidiaries, owns, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests of another person;
	c. 	Affirmatively influences in any manner the election of a majority of the directors of another person; or
	d. 	Has contributed more than 20 percent of the capital of the other person.
193E—7.10(543B) Agency-designated broker responsibilities. The following conditions and circumstances, together with the education and experience of licensed and unlicensed employees and independent contractors, shall be considered when determining whether or not the designated broker has met the supervisory responsibilities as set forth by Iowa Code section 543B.62, subsection (3), paragraph “b.”
	7.10(1) When making a determination, the commission may consider, but is not limited to consideration of, the following:
	a. 	Availability of the designated broker/designee to assist and advise regarding brokerage-related activities;
	b. 	General knowledge of brokerage-related staff activities;
	c. 	Availability of quality training programs and materials to licensed and unlicensed employees and independent contractors;
	d. 	Supervisory policies and practices in the review of competitive market analysis, listing contracts, sales contracts and other contracts or information prepared for clients and customers;
	e. 	Frequency and content of staff meetings;
	f. 	Written company policy manuals for licensed and unlicensed employees and independent contractors;
	g. 	Ratio of supervisors to licensed employees and independent contractors; and
	h. 	Assignment of an experienced licensee to work with new licensees.
	7.10(2) The designated broker shall disseminate, in a timely manner, to licensed employees and independent contractors all regulatory information received by the brokerage pertaining to the practice of real estate brokerage.
193E—7.11(543B) Supervision required. An employing or affiliated broker is responsible for providing supervision of any salesperson or broker associate employed by or otherwise associated with the broker as a representative of the broker. The existence of an independent contractor relationship or any other special compensation arrangement between the broker and the salesperson or broker associate shall not relieve either the broker or the salesperson or broker associate of duties, obligations or responsibilities required by law.
	7.11(1) Each salesperson and broker associate shall keep the broker fully informed of all activities being conducted on behalf of the broker and any other activities that might impact the broker’s responsibilities. However, the failure of the salesperson or broker associate to keep the broker fully informed shall not relieve the broker of duties, obligations or responsibilities required by law.
	7.11(2) The activities of a salesperson or broker associate acting as a principal in the sale, lease, rental, or exchange of property owned by the licensee could impact the salesperson’s or broker associate’s license and the license of the employing or affiliated broker.
	a. 	When a licensee is acting as a principal, the licensee shall keep the employing or affiliated broker fully informed of all activities.
	b. 	While this rule does not require that a licensee list property owned by the licensee with the employing or affiliated broker, the broker may require as a condition of employment or affiliation that the licensee list the property with the employing or affiliated broker or pay a commission.
	7.11(3) A broker associate, as defined in Iowa Code section 543B.5(5) and rule 193E—2.1(543B), is a broker employed by or otherwise associated with another broker as a salesperson. A broker associate is subject to the provisions of Iowa Code sections 543B.24 and 543B.33 and commission rules pertaining to salespersons during the time the broker remains a broker associate.
	7.11(4) A broker who sponsors a salesperson during the salesperson’s first year of licensure must be able to demonstrate that the broker has the time available and experience necessary to adequately supervise an inexperienced salesperson.
193E—7.12(543B) Commission controversies. The commission will not and is not authorized by law to consider or conduct hearings involving disputes over fees or commissions between cooperating brokers, salespersons, and other brokers.
	7.12(1) A former employing or affiliated broker may pay a commission directly to a broker associate or salesperson who is presently assigned to another broker or firm, or whose license is inactive, expired, suspended or revoked, only if the commission was earned while the broker associate or salesperson was actively licensed and assigned to the former broker. Whether or not a commission was earned while the broker associate or salesperson was licensed with the former broker depends upon the licensee’s written agreement with the former broker. The commission will not determine if a commission is earned or if a commission is to be paid.
	7.12(2) If the licensee is presently assigned to another broker or firm, the former broker shall not pay the commission to the new employing or affiliated broker or firm.
	7.12(3) An Iowa real estate broker may pay a commission or fee to or receive a commission or fee from a nonresident broker who is actively licensed in the broker’s resident state but not licensed in Iowa. The nonresident broker shall take no part in the listing, showing, negotiating offers or any other functions of a broker in Iowa unless actively licensed in Iowa.
	7.12(4) Upon the termination of association or employment with the affiliated broker or firm, the broker associate or salesperson shall not take or use any written listing or brokerage agreements secured during the association or employment. Said listings and brokerage agreements shall remain the property of the broker or firm and may be canceled only by the broker and the seller, unless the terms of the listing or brokerage agreement state otherwise.
193E—7.13(543B) Support personnel for licensees; permitted and prohibited activities. Whenever a licensee affiliated with a broker engages support personnel to assist the affiliated licensee in the activities of the real estate brokerage business, both the firm or sponsoring broker and the affiliated licensee are responsible for supervising the acts or activities of the personal assistant; however, the affiliated licensee shall have the primary responsibility for supervision. Unless the support person holds a real estate license, the support person may not perform any activities, duties, or tasks of a real estate licensee as identified in Iowa Code sections 543B.3 and 543B.6 and may perform only ministerial duties that do not require discretion or the exercise of the licensee’s own judgment. Personal assistants shall be considered support personnel.
	7.13(1) Individuals actively licensed with one firm or broker may not work as support personnel for a licensee affiliated with another firm or broker. Individuals with an inactive status license may work as support personnel for a licensee, but shall not participate in any activity that requires a real estate license.
	7.13(2) Any real estate brokerage firm or broker that allows an affiliated licensee to employ, or engage under an independent contractor agreement, support personnel to assist the affiliated licensee in carrying out brokerage activities must comply with the following:
	a. 	Implement a written company policy authorizing the use of support personnel by licensees;
	b. 	Specify in the written company policy, which may incorporate the duties listed in 7.13(4), any duties that the support personnel may perform on behalf of the affiliated licensee;
	c. 	Ensure that the affiliated licensee and the support personnel receive copies of the duties that support personnel may perform.
	7.13(3) Broker supervision and improper use of license and office. While individual and designated brokers shall be responsible for supervising the real estate-related activities of all support personnel, an affiliated licensee employing a personal assistant shall have the primary responsibility for supervision of that personal assistant. A broker shall not be held responsible for inadequate supervision if:
	a. 	The unlicensed person violated a provision of Iowa Code chapter 543B or of commission rules that is in conflict with the supervising broker’s specific written policies or instructions;
	b. 	Reasonable procedures have been established to verify that adequate supervision was being provided;
	c. 	The broker, upon hearing of the violation, attempted to prevent or mitigate the damage;
	d. 	The broker did not participate in the violation; and
	e. 	The broker did not attempt to avoid learning of the violation.
	7.13(4) In order to provide reasonable assistance to licensees and their support personnel, but without defining every permitted activity, the commission has identified certain tasks that unlicensed support personnel under the direct supervision of a licensee affiliated with a firm or broker may and may not perform.
	a. 	Permitted activities include, but are not limited to, the following:

(1)	Answer the telephone, provide information about a listing to other licensees, and forward calls from the public to a licensee;	
(2)	Submit data on listings to a multiple listing service;	
(3)	Check on the status of loan commitments after a contract has been negotiated;	
(4)	Assemble documents for closings;	
(5)	Secure documents that are public information from the courthouse and other sources available to the public;	
(6)	Have keys made for company listings;	
(7)	Write advertisements and promotional materials for the approval of the licensee and supervising broker;	
(8)	Place advertisements in magazines, newspapers, and other media as directed by the supervising broker;	
(9)	Record and deposit earnest money, security deposits, and advance rents, and perform other bookkeeping duties;	
(10)	Type contract forms as directed by the licensee or the supervising broker;	
(11)	Monitor personnel files;	
(12)	Compute commission checks;	
(13)	Place signs on property;	
(14)	Order items of routine repair as directed by a licensee;	
(15)	Act as courier for such purposes as delivering documents or picking up keys. The licensee remains responsible for ensuring delivery of all executed documents required by Iowa law and commission rules;	
(16)	Schedule appointments with the seller or the seller’s agent in order for a licensee to show a listed property;	
(17)	Arrange dates and times for inspections;	
(18)	Arrange dates and times for the mortgage application, the preclosing walk-through, and the closing;	
(19)	Schedule an open house;	
(20)	Perform physical maintenance on a property; or	
(21)	Accompany a licensee to an open house or a showing and perform the following functions as a host or hostess:
1.	Open the door and greet prospects as they arrive;
2.	Hand out or distribute prepared printed material;
3.	Have prospects sign a register or guest book to record names, addresses and telephone numbers;
4.	Accompany prospects through the home for security purposes and not answer any questions pertaining to the material aspects of the house or its price and terms.	
(22)	Independently host open houses for tours attended by licensed brokers and salespersons only.	
	b. 	Prohibited activities include, but are not limited to, the following:

(1)	Making cold calls by telephone or in person or otherwise contacting the public for the purpose of securing prospects for listings, leasing, sale, exchanges, or property management;	
(2)	Independently hosting open houses, kiosks, home show booths, or fairs attended by the public;	
(3)	Preparing promotion materials or advertisements without the review and approval of licensee and supervising broker;	
(4)	Showing property independently;	
(5)	Answering any questions on title, financing, or closings (other than time and place);	
(6)	Answering any questions regarding a listing except for information on price and amenities expressly provided in writing by the licensee;	
(7)	Discussing or explaining a contract, listing, lease, agreement, or other real estate document with anyone outside the firm;	
(8)	Negotiating or agreeing to any commission, commission split, management fee, or referral fee on behalf of a licensee;	
(9)	Discussing with the owner of real property the terms and conditions of the real property offered for sale or lease;	
(10)	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;	
(11)	Providing owners of real property or prospective buyers or tenants with any advice, recommendations or suggestions as to the sale, purchase, exchange, rental, or leasing of real property that is listed, to be listed, or currently available for sale or lease; or	
(12)	Holding one’s self out in any manner, orally or in writing, as being licensed or affiliated with a particular firm or real estate broker as a licensee.	
[ARC 8519B, IAB 2/10/10, effective 3/17/10]
193E—7.14(543B) Information provided by nonlicensed support personnel restricted. Nonlicensed support personnel may, on behalf of the employer licensee, provide information concerning the sale, exchange, purchase, rental, lease, or advertising of real estate only to another licensee. Support personnel shall provide information only to another licensee that has been provided to the personnel by the employer licensee either verbally or in writing.
193E—7.15(543B) Presenting purchase agreements. All written offers to purchase received by a listing broker or listing agent shall be promptly presented to the seller for formal acceptance or rejection. The formal acceptance or rejection of the offer shall be promptly communicated to the prospective buyers. Unless there is written agreement between the seller and the listing broker directing otherwise, the listing broker shall be required to present back-up offers until the transaction has closed.
	7.15(1) A customer’s agent seeking compensation from the listing broker shall not prepare an offer to purchase on the property without first obtaining authorization and agreement from the listing broker.
	7.15(2) A real estate licensee shall not induce another to seek to alter, modify, or change another licensee’s fee or commission for real estate brokerage services without that licensee’s prior written consent.
	7.15(3) Immediately upon receiving an offer to purchase signed and dated by the buyer with consideration, if any, the listing agent shall provide a copy of the offer to purchase to the buyer as a receipt.
	7.15(4) A customer’s agent or representative shall not negotiate directly or indirectly with a seller or buyer, or landlord or tenant, if the agent knows, or acting in a reasonable manner should have known, that the seller or buyer, or landlord or tenant, has a written unexpired listing or brokerage agreement for services on an exclusive basis.
	7.15(5) A listing agent shall not refuse to permit a customer’s agent or representative to be present at any step in a real estate transaction including, but not limited to, viewing a property, seeking information about a property, or negotiating directly or indirectly with an agent about a property listed by such agent; and no agent shall refuse to show a property listed by that agent or otherwise deal with a represented customer who requests that the customer’s agent or representative be present at any step in the real estate transaction, except as provided in this subrule.
	a. 	The customer’s agent or representative does not have the right to be present at any discussion of confidential matters or evaluation of the offer by the seller and the listing agent.
	b. 	Unless the seller provides written instructions to the listing agent to exclude a customer’s agent or representative from being present when the offer is presented, it is not unlawful for the customer’s agent or representative to be present.
	c. 	Compliance with this rule does not require or obligate a listing broker to share any commission or to otherwise compensate a customer’s agent.
These rules are intended to implement Iowa Code chapters 17A, 272C and 543B.
[Filed May 25, 1953; amended June 11, 1953, May 31, 1957, January 15, 1963,
May 10, 1966, July 13, 1967, August 10, 1973, December 11, 1973, May 13, 1975]
[Filed 9/3/76, Notice 7/12/76—published 9/22/76, effective 10/27/76]
[Filed 6/8/78, Notice 5/3/78—published 6/28/78, effective 8/2/78]
[Filed 5/30/79, Notice 3/21/79—published 6/27/79, effective 8/1/79]
[Filed 3/27/81, Notices 8/20/80, 2/18/81—published 4/15/81, effective 5/20/81]
[Filed emergency 5/22/81—published 6/10/81, effective 7/1/81]
[Filed 8/28/81, Notice 4/29/81—published 9/16/81, effective 10/22/81]
[Filed 10/7/81, Notice 8/19/81—published 10/28/81, effective 12/2/81]
[Filed 12/4/81, Notice 10/28/81—published 12/23/81, effective 1/27/82]
[Filed 2/12/82, Notice 12/23/81—published 3/3/82, effective 4/7/82]
[Filed without Notice 2/26/82—published 3/17/82, effective 4/21/82]
[Filed 5/6/82, Notice 3/17/82—published 5/26/82, effective 6/30/82]
[Filed 6/3/82, Notices 4/28/82—published 6/23/82, effective 7/29/82]
[Filed emergency 7/2/82—published 7/21/82, effective 7/2/82]
[Filed 9/10/82, Notice 5/26/82—published 9/29/82, effective 11/3/82]
[Filed 9/10/82, Notice 7/21/82—published 9/29/82, effective 11/3/82]
[Filed 3/23/83, Notice 1/5/83—published 4/13/83, effective 7/1/83]
[Filed 6/17/83, Notice 1/5/83—published 7/6/83, effective 8/10/83]
[Filed 8/26/83, Notice 7/6/83—published 9/14/83, effective 10/20/83]
[Filed 12/15/83, Notice 10/26/83—published 1/4/84, effective 2/9/84]
[Filed 3/8/84, Notice 1/4/84—published 3/28/84, effective 5/2/841]
[Filed without Notice 6/15/84—published 7/4/84, effective 8/8/84]
[Filed emergency after Notice 5/1/85, Notice 2/13/85—published 5/22/85, effective 5/1/85]
[Filed emergency 7/19/85—published 8/14/85, effective 7/19/85]
[Filed without Notice 8/23/85—published 9/11/85, effective 10/16/85]
[Filed 9/18/86, Notice 7/16/86—published 10/8/86, effective 11/12/86]
[Filed emergency after Notice 10/1/87, Notice 8/26/87—published 10/21/87, effective 10/2/87]
[Filed 10/2/87, Notice 8/26/87—published 10/21/87, effective 11/25/87]
[Filed 5/26/88, Notice 3/9/88—published 6/15/88, effective 7/20/88]
[Filed 4/25/89, Notice 3/8/89—published 5/17/89, effective 6/21/89]
[Filed 12/4/92, Notice 9/30/92—published 12/23/92, effective 1/27/93]
[Filed emergency 1/29/93—published 2/17/93, effective 1/29/93]
[Filed 6/4/93, Notice 3/31/93—published 6/23/93, effective 7/29/932]
[Filed 4/4/94, Notice 2/16/94—published 4/27/94, effective 6/1/94]
[Filed 2/6/95, Notice 12/7/94—published 3/1/95, effective 4/5/95]
[Filed 12/1/95, Notice 10/25/95—published 12/20/95, effective 1/24/96]
[Filed 5/2/96, Notice 3/13/96—published 5/22/96, effective 6/26/96]
[Filed 8/23/96, Notice 7/17/96—published 9/11/96, effective 10/16/96]
[Filed 8/22/97, Notice 7/2/97—published 9/10/97, effective 10/15/97]
[Filed 12/11/98, Notice 8/12/98—published 12/30/98, effective 2/3/99]
[Filed 12/11/98, Notice 9/23/98—published 12/30/98, effective 2/3/99]
[Filed 5/28/99, Notice 3/24/99—published 6/16/99, effective 7/21/99]
[Filed 3/2/00, Notice 1/12/00—published 3/22/00, effective 4/26/003]
[Filed emergency 6/8/00—published 6/28/00, effective 6/9/00]
[Filed 8/9/02, Notice 6/26/02—published 9/4/02, effective 10/9/02]
[Filed 12/16/05, Notice 10/26/05—published 1/18/06, effective 2/22/06]
[Editorial change: IAC Supplement 11/4/09]
[Filed ARC 8519B (Notice ARC 8291B, IAB 11/18/09), IAB 2/10/10, effective 3/17/10]
[Filed ARC 3500C (Notice ARC 3154C, IAB 7/5/17), IAB 12/6/17, effective 1/10/18]
1	Effective date of amendment to rule 1.21 delayed 70 days by the Administrative Rules Review Committee.
2	Effective date of 1.31(543B) delayed 70 days by the Administrative Rules Review Committee at its meeting held July 8, 1993.
3	Effective date of 1.1, definition of “referral fee”; 1.41, introductory paragraph; and subrules 1.41(3) and 1.41(7) delayed 70 days by the Administrative Rules Review Committee at its meeting held April 7, 2000; rescinded IAB 6/28/00, effective 6/9/00.