House File 2389 - Introduced



                                     HOUSE FILE       
                                     BY  STRUYK, KURTENBACH, DIX,
                                         WISE, QUIRK, HUSER, DANDEKAR,
                                         and SANDS


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to real estate, including real estate broker and
  2    salesperson licensing and real estate disclosures.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6191YH 81
  5 jr/gg/14

PAG LIN



  1  1    Section 1.  Section 543B.5, Code Supplement 2005, is
  1  2 amended by adding the following new subsection:
  1  3    NEW SUBSECTION.  13A.  "Listing" is an agreement between a
  1  4 property owner and another person in which that person holds
  1  5 or advertises the property to the public as being available
  1  6 for sale or lease.
  1  7    Sec. 2.  Section 543B.7, subsection 1, Code Supplement
  1  8 2005, is amended to read as follows:
  1  9    1.  A person who, as owner, spouse of an owner, general
  1 10 partner of a limited partnership, or lessor, or prospective
  1 11 purchaser, or through another engaged by such person on a
  1 12 regular full=time basis, buys, sells, manages, or otherwise
  1 13 performs any act with reference to property owned, rented,
  1 14 leased, or to be acquired by such person.
  1 15    Sec. 3.  Section 543B.15, subsections 3 and 4, Code
  1 16 Supplement 2005, are amended to read as follows:
  1 17    3.  An applicant for a real estate broker's or
  1 18 salesperson's license who has been convicted of forgery,
  1 19 embezzlement, obtaining money under false pretenses, theft,
  1 20 extortion, conspiracy to defraud, or other similar offense, or
  1 21 of any crime involving moral turpitude in a court of competent
  1 22 jurisdiction in this state, or in any other state, territory,
  1 23 or district of the United States, or in any foreign
  1 24 jurisdiction, may shall be denied a license by the commission,
  1 25 on the grounds of the conviction.  For purposes of this
  1 26 section, "conviction" means a conviction for an indictable
  1 27 offense and includes a guilty plea, deferred judgment from the
  1 28 time of entry of the deferred judgment until the time the
  1 29 defendant is discharged by the court without entry of
  1 30 judgment, or other finding of guilt by a court of competent
  1 31 jurisdiction.
  1 32    4.  An applicant for a real estate broker's or
  1 33 salesperson's license who has had a professional license of
  1 34 any kind revoked or suspended or who has had any other form of
  1 35 discipline imposed, in this or any other jurisdiction may be
  2  1 denied a license by the commission on the grounds of the
  2  2 revocation, suspension, or other discipline.
  2  3    Sec. 4.  Section 543B.49, Code 2005, is amended to read as
  2  4 follows:
  2  5    543B.49  INJUNCTIVE RELIEF.
  2  6    1.  In addition to the penalty and complaint provisions of
  2  7 sections 543B.43, 543B.44, and 543B.48, an injunction may be
  2  8 granted through an action in district court to prohibit a
  2  9 person from engaging in an activity which violates the
  2 10 provisions of section 543B.1.  The court shall grant an
  2 11 injunction if it appears to the court that a violation has
  2 12 occurred or is imminently threatened. The plaintiff is not
  2 13 required to show that the violation or threatened violation
  2 14 would greatly or irreparably injure the plaintiff. No bond
  2 15 shall be required of the plaintiff unless the court determines
  2 16 that a bond is necessary in the public interest.  The action
  2 17 for injunctive relief may be brought by an affected person.
  2 18 For the purposes of this section, "affected person" means any
  2 19 person directly impacted by the actions of a person suspected
  2 20 of violating the provisions of section 543B.1, including but
  2 21 not limited to the commission created in section 543B.8, a
  2 22 person who has utilized the services of a person suspected of
  2 23 violating the provisions of section 543B.1, or a private
  2 24 association composed primarily of members practicing a
  2 25 profession for which licensure is required pursuant to this
  2 26 chapter.
  2 27    2.  If successful in obtaining injunctive relief, the
  2 28 affected person shall be entitled to actual costs and attorney
  2 29 fees, unless the person suspected of violating a provision of
  2 30 section 543B.1 prevails in any application for permanent
  2 31 injunctive relief.  For the purposes of this section, "actual
  2 32 costs" means those costs other than attorney fees which were
  2 33 actually incurred in connection with the action, including but
  2 34 not limited to court and witness fees, investigative expenses,
  2 35 travel expenses, legal research expenses, and other related
  3  1 fees and expenses.
  3  2    Sec. 5.  Section 558A.1, subsection 4, Code Supplement
  3  3 2005, is amended by adding the following new paragraph:
  3  4    NEW PARAGRAPH.  i.  A transfer by a power of attorney.
  3  5                           EXPLANATION
  3  6    This bill relates to real estate brokers and salespersons.
  3  7 The bill defines the term "listing".  The bill also requires
  3  8 that an application for licensure be denied if the applicant
  3  9 has been convicted of forgery, embezzlement, obtaining money
  3 10 under false pretenses, theft, extortion, conspiracy to
  3 11 defraud, or other similar offense, or of any crime involving
  3 12 moral turpitude.  Pursuant to the bill, the board has
  3 13 discretion to deny an application if a licensee from another
  3 14 jurisdiction has received any form of licensee discipline in
  3 15 that jurisdiction.
  3 16    The bill strikes a current exemption from coverage under
  3 17 the Code chapter relating to the licensing of real estate
  3 18 brokers and salespersons for the actions of a "prospective
  3 19 purchaser".
  3 20    The bill requires that a court grant an injunction if it
  3 21 appears to the court that a violation of the real estate
  3 22 licensing laws has occurred or is imminently threatened.  The
  3 23 bill provides that the plaintiff is not required to show that
  3 24 the violation or threatened violation would greatly or
  3 25 irreparably injure the plaintiff and that the plaintiff is not
  3 26 required to post a bond unless specifically required by the
  3 27 court.  The bill also eliminates redundant language relating
  3 28 to the imposition of court costs and attorney fees.
  3 29    The bill exempts transfers of property by a power of
  3 30 attorney from requirements relating to mandatory disclosures
  3 31 relating to the condition of real property.
  3 32 LSB 6191YH 81
  3 33 jr:nh/gg/14