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.TheA real estate brokeror 1 13 attorneyproviding 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