House Study Bill 16



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            JUDICIARY BILL BY
                                            CHAIRPERSON PAULSEN)


    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:
  5 TLSB 1078HC 81
  6 rn/gg/14

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 A real estate broker or
  1 13 attorney providing brokerage services and closing services
  1 14 shall be present at the time of the auction and, if found to
  1 15 be in violation of this subsection, shall be subject to a
  1 16 civil penalty of two thousand five hundred dollars.  If the
  1 17 auctioneer closes or attempts to close the sale of the
  1 18 property or otherwise engages in acts defined in sections
  1 19 543B.3 and 543B.6, then the requirements of this chapter do
  1 20 apply to the auctioneer.  If an investigation pursuant to this
  1 21 chapter reveals that an auctioneer has violated this
  1 22 subsection or has assumed to act in the capacity of a real
  1 23 estate broker or real estate salesperson, the real estate
  1 24 commission may issue a cease and desist order, and shall issue
  1 25 a warning letter notifying the auctioneer of the violation for
  1 26 the first offense, and impose a penalty of up to the greater
  1 27 of ten thousand dollars or ten percent of the real estate
  1 28 sales price for each subsequent violation.
  1 29                           EXPLANATION
  1 30    This bill provides for the elimination of specified
  1 31 requirements 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 these requirements,
  2  4 but retains their applicability with regard to real estate
  2  5 brokers.
  2  6 LSB 1078HC 81
  2  7 rn/gg/14