Senate File 314 - Introduced SENATE FILE 314 BY COMMITTEE ON STATE GOVERNMENT (SUCCESSOR TO SF 15) A BILL FOR An Act relating to the license application form for real 1 estate brokers and salespersons, and brokerage agreement 2 requirements. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1576SV (3) 91 nls/ko

S.F. 314 Section 1. Section 543B.16, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 4. The application form prepared or 3 furnished by the real estate commission must allow a person 4 holding a real estate broker license who is applying for a real 5 estate salesperson license, or a person holding a real estate 6 salesperson license who is applying for a real estate broker 7 license, to indicate whether the license being applied for 8 shall become effective upon approval of the application or upon 9 the expiration of the applicant’s current license. 10 Sec. 2. Section 543B.56A, subsection 3, Code 2025, is 11 amended to read as follows: 12 3. A brokerage agreement must be signed by both the broker 13 and the client prior to the broker listing any property for 14 sale on behalf of a seller, or before showing a property to a 15 buyer, or if no property is shown to a buyer, before making an 16 offer on a property on behalf of a buyer. This subsection The 17 brokerage agreement requirements under this subsection that 18 apply to a buyer shall not apply to customers attending an open 19 house or auction, to a potential buyer of a property of more 20 than four dwelling units, or to a property that is not intended 21 for human inhabitance . 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the license application form for real 26 estate brokers and salespersons, and brokerage agreement 27 requirements. Under the bill, an application form for a 28 license must allow a person holding a real estate broker 29 license who is applying for a real estate salesperson license, 30 or vice versa, to indicate whether the license being applied 31 for shall become effective upon approval of the application or 32 upon the expiration of the applicant’s current license. 33 Under the bill, brokerage agreement requirements under 34 current law that apply to a buyer shall not apply to customers 35 -1- LSB 1576SV (3) 91 nls/ko 1/ 2

S.F. 314 attending an open house, to a potential buyer of a property of 1 more than four units, or to a property that is not intended for 2 human inhabitance. 3 -2- LSB 1576SV (3) 91 nls/ko 2/ 2