House File 2360 - Introduced HOUSE FILE 2360 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 572) A BILL FOR An Act relating to the authorized activities of a real estate 1 broker or real estate salesperson and the authorized 2 activities of auctioneers in relation thereto. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5648HV (2) 84 rn/nh

H.F. 2360 Section 1. Section 543B.7, subsection 5, Code 2011, is 1 amended to read as follows: 2 5. a. The acts of an auctioneer in conducting a public 3 sale or auction. The auctioneer’s role must be limited 4 to establishing the time, place, and method of an auction; 5 advertising the auction including which shall be limited to 6 a brief description of the property for auction and the time 7 and place for the auction; and crying the property at the 8 auction. The auctioneer shall provide in any advertising the 9 name and address of the real estate broker who is providing 10 brokerage services for the transaction and the name of the 11 real estate broker , or attorney , or closing company who is 12 responsible for closing the sale of the property. The real 13 estate broker providing brokerage services shall be present at 14 the time of the auction and, if found to be in violation of this 15 subsection , shall be subject to a civil penalty of two thousand 16 five hundred dollars. If the auctioneer closes or attempts to 17 close the sale of the property or otherwise engages in acts 18 defined in sections 543B.3 and 543B.6 , then the requirements of 19 this chapter do apply to the auctioneer. If an investigation 20 pursuant to this chapter reveals that an auctioneer has 21 violated this subsection or has assumed to act in the capacity 22 of a real estate broker or real estate salesperson, the real 23 estate commission may shall issue a cease and desist order, 24 and shall issue a warning letter notifying the auctioneer of 25 the violation impose a penalty of two thousand five hundred 26 dollars for the first offense, and impose a penalty of up to 27 the greater of ten thousand dollars or ten percent of the real 28 estate sales price for each subsequent violation. 29 b. An auctioneer conducting a real property auction shall 30 not do any of the following: 31 (1) Contact the public by telephone or in person for the 32 purpose of securing prospects for real property auctions, 33 listings, leasing, sales, exchanges, or property management. 34 (2) Independently host open houses. 35 -1- LSB 5648HV (2) 84 rn/nh 1/ 4

H.F. 2360 (3) Prepare promotional materials or advertisements beyond 1 a brief description of the real property and the time and place 2 for the auction, unless approved by a supervising licensed real 3 estate broker. 4 (4) Independently show real property. 5 (5) Answer any questions regarding real property 6 title, financing, or closings other than time and location 7 information. 8 (6) Answer any questions regarding a real property auction 9 listing except for information regarding price and amenities 10 expressly provided in writing by the owner or a supervising 11 real estate broker. 12 (7) Discuss or explain a real property contract, lease, 13 agreement, or other real estate document. 14 (8) Negotiate or agree to any commission, partial 15 commission, management fee, or referral fee on behalf of a 16 supervising real estate broker. 17 (9) Discuss with the owner of real property the terms and 18 conditions of the real property offered for sale or lease. 19 (10) Collect or hold deposit moneys, rent, other moneys, or 20 anything of value received from the owner of real property or 21 from a prospective buyer or tenant. 22 (11) Provide owners of real property or prospective buyers 23 or tenants with any advice, recommendations, or suggestions 24 regarding the sale, purchase, exchange, rental, or leasing of 25 real property that is listed, anticipated to be listed, or 26 currently available for auction, sale, or lease. 27 (12) Represent in any manner, orally or in writing, that 28 the auctioneer is licensed or affiliated with a particular real 29 estate firm or real estate broker as a licensee under this 30 chapter. 31 Sec. 2. Section 543B.34, Code Supplement 2011, is amended by 32 adding the following new subsection: 33 NEW SUBSECTION . 1A. For the purposes of subsection 1, 34 a complaint which would otherwise be considered a verified 35 -2- LSB 5648HV (2) 84 rn/nh 2/ 4

H.F. 2360 complaint shall not be disqualified from verification on the 1 basis of being received anonymously or in an unsigned form. 2 EXPLANATION 3 This bill relates to licensing provisions governing real 4 estate brokers and real estate salespersons contained in Code 5 chapter 543B. 6 The bill modifies provisions in Code section 543B.7 which 7 exclude the acts of an auctioneer in conducting a public 8 sale or auction from the provisions of the Code chapter 9 under specified circumstances. Currently, to qualify for the 10 exclusion an auctioneer’s role must be limited to establishing 11 the time, place, and method of an auction; advertising the 12 auction including a brief description of the property for 13 auction and the time and place for the auction; and crying 14 the property at the auction. The bill changes this provision 15 such that advertising the auction shall be limited to a brief 16 description of the property for auction and the time and place 17 for the auction. The bill also adds providing the name of 18 the closing company to individuals or entities required to be 19 identified by an auctioneer in advertisements. 20 The bill mandates issuance of a cease and desist order by 21 the real estate commission if an investigation reveals that an 22 auctioneer has violated provisions governing exclusion from the 23 Code chapter or has assumed to act in the capacity of a real 24 estate broker or real estate salesperson. Currently, issuance 25 of an order is optional. The bill deletes a current provision 26 that the commission issue a warning letter notifying the 27 auctioneer of the violation, substituting this with imposition 28 of a penalty in the amount of $2,500 for a first offense. 29 Additionally, the bill contains a list of specifically 30 prohibited activities of an auctioneer when conducting real 31 property auctions. 32 The bill also provides, with reference to commission 33 investigations regarding the actions of a real estate broker, 34 real estate salesperson, or other person assuming to act 35 -3- LSB 5648HV (2) 84 rn/nh 3/ 4

H.F. 2360 in either capacity, that in the event an investigation is 1 commenced upon receipt of a verified complaint in writing from 2 a person, the complaint shall not be disqualified on the basis 3 of being received anonymously or in an unsigned form. 4 -4- LSB 5648HV (2) 84 rn/nh 4/ 4