House File 2269 - Introduced



                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE

                                       (SUCCESSOR TO HSB 548)


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

                                      A BILL FOR

  1 An Act relating to real estate broker trust accounts.
  2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  3 TLSB 5363HV 82
  4 jr/rj/5

PAG LIN



  1  1    Section 1.  Section 543B.46, subsection 1, Code Supplement
  1  2 2007, is amended to read as follows:
  1  3    1.  Each real estate broker shall maintain a common trust
  1  4 account in a bank, a savings and loan association, savings
  1  5 bank, or credit union for the deposit of all down payments,
  1  6 earnest money deposits, or other trust funds received by the
  1  7 broker or the broker's salespersons on behalf of the broker's
  1  8 principal, except that a broker acting as a salesperson shall
  1  9 deposit these funds in the common trust account of the broker
  1 10 for whom the broker acts as salesperson.  The account shall be
  1 11 an interest=bearing account.  The interest on the account
  1 12 shall be transferred quarterly to the treasurer of state and
  1 13 transferred to the department of economic development Iowa
  1 14 finance authority for deposit in the local housing assistance
  1 15 program trust fund established in section 15.354 16.181 unless
  1 16 there is a written agreement between the buyer and seller to
  1 17 the contrary.  The broker shall not benefit from interest
  1 18 received on funds of others in the broker's possession.
  1 19                           EXPLANATION
  1 20    Each real estate broker is required to maintain an
  1 21 interest=bearing trust account.  Under current law, the
  1 22 interest on the account is transferred to the department of
  1 23 economic development for deposit in the local housing
  1 24 assistance program fund.  This bill transfers the interest to
  1 25 the Iowa finance authority for deposit in the housing trust
  1 26 fund established in Code section 16.181.
  1 27 LSB 5363HV 82
  1 28 jr/rj/5