HF 2326 (LSB 5538HV (3) 90)

HOUSE FILE 2326

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO HSB 595)

A BILL FOR

An Act relating to real estate brokers, and the rental or leasing of real estate, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 543B.3, unnumbered paragraph 1, Code 2024, is amended to read as follows:
   As used in this chapter, “real estate broker” means a person acting for another for a fee, commission, or other compensation or promise, whether it be for all or part of a person’s time, and who engages directly or indirectly in any of the following acts:
    Sec. 2.  NEW SECTION.  543B.7A  Exclusions —— rental or leasing on behalf of another.
   This chapter shall not apply to any of the following:
   1.  A person, limited liability company, or limited partnership who engages in any act under section 543B.3 that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or limited liability company, and the person, limited liability company, or limited partnership maintains an ownership interest in the partnership, limited partnership, corporation, or limited liability company.
   2.  A person who engages in any act under section 543B.3 that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or limited liability company, and the person has an ownership interest in the partnership, limited partnership, corporation, or limited liability company, which is a parent or subsidiary of, or under common control with the leasing partnership, limited partnership, corporation, or limited liability company.
   3.  A person who is a nonlicensed employee of a real estate broker and who engages in advertising, showing, listing, collection of rents and deposits, procuring of prospects, completing form agreements, and executing form agreements as it relates to the rental of real estate under chapter 562A or 562B.
    Sec. 3.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 4.  RETROACTIVE APPLICABILITY.  This Act applies to proceedings before the real estate commission created in section 543B.8, other administrative proceedings before a state agency or department, and judicial proceedings before a court, that are not finally adjudicated or are otherwise pending on the effective date of this Act, except to the extent such application would affect a person’s contractual or vested rights.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to real estate brokers, and the rental or leasing of real estate.
   Under current law, a real estate broker is defined as a person acting for another for a fee, commission, or other compensation or promise, who engages directly or indirectly in the acts enumerated in the bill. Under the bill, a real estate broker is defined as a person acting for another for a fee, commission, or other compensation or promise, who engages in the acts enumerated in the bill.
   The bill creates an exception to Code chapter 543B for a person, limited liability company, or limited partnership who engages in any act that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or limited liability company, and the person, limited liability company, or limited partnership maintains an ownership interest in the partnership, limited partnership, corporation, or limited liability company. The bill creates an exception to Code chapter 543B for a person who engages in an act related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or limited liability company, and the person has an ownership interest in the partnership, limited partnership, corporation, or limited liability company, which is a parent or subsidiary of, or under common control with the leasing partnership, limited partnership, corporation, or limited liability company. The bill also creates an exception to the Code chapter for a person who is a nonlicensed employee of a real estate broker and who engages in advertising, showing, listing, collecting of rents and deposits, procuring of prospects, completing form agreements, and executing form agreements as it relates to the rental of real estate under Code chapter 562A or 562B.
   The bill takes effect upon enactment.
   The bill applies to all proceedings that are not finally adjudicated or are otherwise pending on the effective date of the bill, except to the extent such application would affect a person’s contractual or vested rights.