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