House File 439 - Introduced
HOUSE FILE
BY COMMITTEE ON JUDICIARY
(SUCCESSOR TO HSB 16)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act providing for the elimination of specified requirements
2 applicable to an attorney providing brokerage and closing
3 services in connection with a real estate auction.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 543B.7, subsection 5, Code 2005, is
1 2 amended to read as follows:
1 3 5. The acts of an auctioneer in conducting a public sale
1 4 or auction. The auctioneer's role must be limited to
1 5 establishing the time, place, and method of an auction;
1 6 advertising the auction including a brief description of the
1 7 property for auction and the time and place for the auction;
1 8 and crying the property at the auction. The auctioneer shall
1 9 provide in any advertising the name and address of the real
1 10 estate broker or attorney who is providing brokerage services
1 11 for the transaction and who is also responsible for closing
1 12 the sale of the property. The real estate broker or attorney
1 13 providing brokerage services and closing services shall be
1 14 present at the time of the auction, and if. A real estate
1 15 broker found to be in violation of this subsection, shall be
1 16 subject to a civil penalty of two thousand five hundred
1 17 dollars. If the auctioneer closes or attempts to close the
1 18 sale of the property or otherwise engages in acts defined in
1 19 sections 543B.3 and 543B.6, then the requirements of this
1 20 chapter do apply to the auctioneer. If an investigation
1 21 pursuant to this chapter reveals that an auctioneer has
1 22 violated this subsection or has assumed to act in the capacity
1 23 of a real estate broker or real estate salesperson, the real
1 24 estate commission may issue a cease and desist order, and
1 25 shall issue a warning letter notifying the auctioneer of the
1 26 violation for the first offense, and impose a penalty of up to
1 27 the greater of ten thousand dollars or ten percent of the real
1 28 estate sales price for each subsequent violation.
1 29 EXPLANATION
1 30 This bill provides for the elimination of a civil penalty
1 31 provision applicable to an attorney providing brokerage and
1 32 closing services regarding real estate being sold or disposed
1 33 of pursuant to a real estate auction. Code section 543B.7,
1 34 subsection 5, currently provides that real estate brokers or
1 35 attorneys providing such services shall be present at the time
2 1 of the auction, and are subject to a civil penalty of $2,500
2 2 for a violation of the subsection. The bill provides that
2 3 attorneys shall no longer be subject to the civil penalty, but
2 4 retains the provision's applicability with regard to real
2 5 estate brokers.
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