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Senate File 536 - IntroducedA Bill ForAn Act 1relating to real estate licensee liability.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 543B.62, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 4. a. A licensee providing brokerage
4services to a client shall not be in possession of the client’s
5real estate. A licensee may enter upon the premises of a
6client’s real estate to fulfill the licensee’s obligations
7pursuant to section 543B.3, section 543B.6, or pursuant to a
8written agreement between the licensee and the client.
9b. A licensee has no duty of care with regard to a client’s
10real estate or with regard to a person entering, viewing, or
11traversing upon the premises of a client’s real estate other
12than to fulfill the licensee’s obligations pursuant to section
13543B.3, section 543B.6, or pursuant to a written agreement
14between the licensee and the client.
15c. A licensee providing brokerage services to a client shall
16not be liable for damage to the client’s real estate or for
17any physical injury, accident, or harm to a person entering,
18viewing, or traversing upon the premises of a client’s real
19estate unless the licensee is the direct and proximate cause of
20the damage, injury, accident, or harm.
21d. A client shall be responsible for the care, maintenance,
22repair, condition, and safety of the client’s real estate that
23is being offered to sell, exchange, buy, or rent to a person.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to real estate licensee liability.
28The bill prohibits a licensee providing brokerage services
29to a client from being in possession of the client’s real
30estate. The bill provides that a licensee may enter upon the
31premises of a client’s real estate to fulfill the licensee’s
32obligations pursuant to Code section 543B.3, relating to broker
33activities, and Code section 543B.6, relating to real estate
34acts, or pursuant to a written agreement.
35The bill provides that a licensee also has no duty of care
-1-1concerning a client’s real estate with regard to a person
2entering, viewing, or traversing upon the premises of the real
3estate except to fulfill the licensee’s obligations pursuant to
4Code sections 543B.3 and 543B.6.
5The bill provides that a licensee providing brokerage
6services shall generally not be liable for damage to a client’s
7real estate or a person harmed on or viewing the real estate
8except where the licensee is the direct and proximate cause of
9the damage, injury, accident, or harm.
10The bill provides that a client shall be responsible for the
11care, maintenance, and safety of the client’s real estate that
12is being offered on the market.
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2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 543B.62, Code 2023, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 4. a. A licensee providing brokerage
4services to a client shall not be in possession of the client’s
5real estate. A licensee may enter upon the premises of a
6client’s real estate to fulfill the licensee’s obligations
7pursuant to section 543B.3, section 543B.6, or pursuant to a
8written agreement between the licensee and the client.
9b. A licensee has no duty of care with regard to a client’s
10real estate or with regard to a person entering, viewing, or
11traversing upon the premises of a client’s real estate other
12than to fulfill the licensee’s obligations pursuant to section
13543B.3, section 543B.6, or pursuant to a written agreement
14between the licensee and the client.
15c. A licensee providing brokerage services to a client shall
16not be liable for damage to the client’s real estate or for
17any physical injury, accident, or harm to a person entering,
18viewing, or traversing upon the premises of a client’s real
19estate unless the licensee is the direct and proximate cause of
20the damage, injury, accident, or harm.
21d. A client shall be responsible for the care, maintenance,
22repair, condition, and safety of the client’s real estate that
23is being offered to sell, exchange, buy, or rent to a person.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to real estate licensee liability.
28The bill prohibits a licensee providing brokerage services
29to a client from being in possession of the client’s real
30estate. The bill provides that a licensee may enter upon the
31premises of a client’s real estate to fulfill the licensee’s
32obligations pursuant to Code section 543B.3, relating to broker
33activities, and Code section 543B.6, relating to real estate
34acts, or pursuant to a written agreement.
35The bill provides that a licensee also has no duty of care
-1-1concerning a client’s real estate with regard to a person
2entering, viewing, or traversing upon the premises of the real
3estate except to fulfill the licensee’s obligations pursuant to
4Code sections 543B.3 and 543B.6.
5The bill provides that a licensee providing brokerage
6services shall generally not be liable for damage to a client’s
7real estate or a person harmed on or viewing the real estate
8except where the licensee is the direct and proximate cause of
9the damage, injury, accident, or harm.
10The bill provides that a client shall be responsible for the
11care, maintenance, and safety of the client’s real estate that
12is being offered on the market.
-2-es/rn