Senate File 2294 - Introduced SENATE FILE 2294 BY COMMITTEE ON COMMERCE (SUCCESSOR TO SSB 3064) A BILL FOR An Act relating to the authorized activities of auctioneers in 1 conducting a public sale or auction of real estate. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5648SV (2) 84 rn/nh

S.F. 2294 Section 1. Section 543B.7, subsection 5, Code 2011, is 1 amended to read as follows: 2 5. The acts of an auctioneer who is not a licensee under 3 this chapter in conducting a public sale or auction , as 4 provided in this subsection . 5 a. The auctioneer’s role must be limited to establishing the 6 time, place, and method of an auction; advertising the auction 7 including a brief description of the property for auction and 8 the time and place for the auction; and crying the property at 9 the auction. 10 (1) The auctioneer shall provide in any advertising the 11 name and address of the real estate broker who is providing 12 brokerage services for the transaction and the name of the real 13 estate broker or attorney who is responsible for closing the 14 sale of the property. 15 (2) The real estate broker providing brokerage services 16 shall be present at the time of the auction and, if found to 17 be in violation of this subsection subparagraph (2) , shall 18 be subject to a civil penalty of two thousand five hundred 19 dollars. 20 (3) If the auctioneer closes or attempts to close the 21 sale of the property , or otherwise engages in acts defined 22 in sections 543B.3 , and 543B.6 , or paragraph “b” of this 23 subsection, then the requirements of this chapter do apply to 24 the auctioneer. 25 b. An auctioneer who is not a licensee is expressly 26 prohibited from engaging in the following acts: 27 (1) Contacting the public regarding real property beyond 28 that which is permitted under this subsection, with the purpose 29 of securing or facilitating the sale of such real property. 30 (2) Independently showing property or hosting open houses. 31 (3) Making material and substantive representations 32 regarding title, financing, or closings. 33 (4) Discussing or explaining a contract, lease, agreement, 34 or other real estate document with a prospective buyer or 35 -1- LSB 5648SV (2) 84 rn/nh 1/ 3

S.F. 2294 tenant of the real property, with the purpose of securing or 1 facilitating the sale of such real property. 2 (5) Collecting or holding deposit moneys, rent, other 3 moneys, or anything of value received from the owner of real 4 property or from a prospective buyer or tenant, other than 5 fees, commissions, or other consideration paid in exchange 6 for conducting the auction or other acts permitted in this 7 subsection, with the purpose of securing or facilitating the 8 sale of real property. 9 (6) Providing owners of real property or prospective buyers 10 or tenants with advice, recommendations, or suggestions as 11 to the sale, purchase, exchange, rental, or lease of real 12 property, except as to acts permitted for auctioneers under 13 this subsection. 14 (7) Falsely representing in any manner, orally or in 15 writing, that the auctioneer is a licensee under this chapter. 16 c. If an investigation pursuant to this chapter reveals 17 that an auctioneer has violated this subsection or has assumed 18 to act in the capacity of a real estate broker or real estate 19 salesperson, the real estate commission may issue a cease and 20 desist order, and shall issue a warning letter notifying the 21 auctioneer of the violation for the first offense, and impose 22 a penalty of up to the greater of ten thousand dollars or ten 23 percent of the real estate sales price for each subsequent 24 violation. 25 EXPLANATION 26 This bill relates to the authorized activities of 27 auctioneers in conducting a public sale or auction of real 28 estate. 29 The bill modifies the provisions of Code section 543B.7, 30 subsection 5, which excludes the activities of an auctioneer 31 from the licensing provisions governing real estate brokers 32 and salespersons in Code chapter 543B under specified 33 circumstances. The bill clarifies that the exclusion applies 34 to the activities of an auctioneer who is not a licensee under 35 -2- LSB 5648SV (2) 84 rn/nh 2/ 3

S.F. 2294 the Code chapter. 1 The bill provides a list of prohibited acts which, if 2 performed by an auctioneer, will subject the auctioneer 3 to the licensing provisions. They include contacting the 4 public regarding real property beyond that authorized in 5 the subsection with the purpose of securing or facilitating 6 the sale of real property; independently showing property 7 or hosting open houses; making material and substantive 8 representations regarding title, financing, or closings; 9 discussing or explaining a contract, lease, agreement, or other 10 real estate document with a prospective buyer or tenant of real 11 property, with the purpose of securing or facilitating the sale 12 of the real property; collecting or holding deposit moneys, 13 rent, other moneys, or anything of value received from the 14 owner of real property or from a prospective buyer or tenant, 15 other than fees, commissions, or other consideration paid in 16 exchange for conducting the auction or other permitted acts 17 with the purpose of securing or facilitating the sale of real 18 property; providing owners of real property or prospective 19 buyers or tenants with advice, recommendations, or suggestions 20 as to the sale, purchase, exchange, rental, or leasing of real 21 property, except as to acts permitted for auctioneers under the 22 subsection; and falsely representing in any manner, orally or 23 in writing, that the auctioneer is a licensee under the Code 24 chapter. 25 A violation of the bill’s provisions is a simple 26 misdemeanor. A simple misdemeanor is punishable by confinement 27 for no more than 30 days or a fine of at least $65 but not more 28 than $625 or by both. 29 -3- LSB 5648SV (2) 84 rn/nh 3/ 3