House Study Bill 159



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            COMMERCE, REGULATION
                                            AND LABOR BILL BY
                                            CHAIRPERSON JENKINS)


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

                                      A BILL FOR

  1 An Act relating to the duties imposed on a real estate broker by
  2    a brokerage agreement.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 2342HC 81
  5 jr/gg/14

PAG LIN



  1  1    Section 1.  Section 543B.5, subsection 7, Code 2005, is
  1  2 amended to read as follows:
  1  3    7.  "Brokerage agreement" means a contract between a broker
  1  4 and a client which establishes the relationship between the
  1  5 parties as to the brokerage services to be performed and
  1  6 contains the provisions required in section 543B.56A.
  1  7    Sec. 2.  NEW SECTION.  543B.56A  BROKERAGE AGREEMENTS ==
  1  8 CONTENTS.
  1  9    A brokerage agreement shall specify that the broker shall,
  1 10 at a minimum, do all of the following:
  1 11    1.  Accept delivery of and present to the client offers and
  1 12 counteroffers to buy, sell, rent, lease, or exchange the
  1 13 client's property or the property the client seeks to purchase
  1 14 or lease.
  1 15    2.  Assist the client in developing, communicating,
  1 16 negotiating, and presenting offers or counteroffers until a
  1 17 rental agreement, lease, exchange agreement, offer to buy or
  1 18 sell, or purchase agreement is signed and all contingencies
  1 19 are satisfied or waived and the transaction is completed.
  1 20    3.  Answer the client's questions relating to the brokerage
  1 21 agreements, listing agreements, offers, counteroffers,
  1 22 notices, and contingencies.
  1 23    4.  Provide prospective buyers access to listed properties.
  1 24                           EXPLANATION
  1 25    This bill adds four specific requirements for a contract
  1 26 entered into between a real estate broker and a client.  The
  1 27 current statutory provisions do not require any specific
  1 28 duties of the broker to be contained in the brokerage
  1 29 agreement.  The bill requires the broker to accept and deliver
  1 30 to the client all offers and counteroffers, assist the client
  1 31 in communicating and negotiating the transaction, answer all
  1 32 of the client's questions relating to the transaction, and
  1 33 provide access to the property to prospective buyers.
  1 34 LSB 2342HC 81
  1 35 jr:nh/gg/14