ARC 8850C

ARC 8850C

Proposing rulemaking related to definitions
and providing an opportunity for public comment

A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 13, 2024. A public hearing was held on the following date(s):

●December 5, 2024

Any persons who intend to attend the public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Commission and advise of specific needs.

ITEM 1.Amend rule 193E—2.1(543B), definitions of “Customer” and “Ministerial acts,” as follows:

“Customer” means a consumer of real estate services in connection with a real estate transaction who is not being represented by the licensee, but for whom the licensee may perform ministerial acts. A customer may be a client of another broker, may have yet to decide whether or not to be represented by any broker, or may have chosen not to be represented by any broker.means the same as defined in Iowa Code section 543.5(10).

“Ministerial acts” means those acts that a licensee may perform for a consumer that are informative in nature and do not rise to the level of specific assistance on behalf of a consumer. For purposes of these rules, ministerial acts include, but are not limited to, the following:

1.Responding to general telephone inquiries by consumers as to the availability and pricing of brokerage services;

2.Responding to general telephone inquiries from a consumer concerning the price, facts and features, or location of property;

3.Attending an open house and responding to general questions from a consumer about the facts and features of the property;

4.Setting an appointment to view property;

5.Responding to general questions of consumers walking into a licensee’s office concerning brokerage services offered or the facts and features of particular properties;

6.Accompanying an appraiser, inspector, contractor, or similar third party on a visit to a property;

7.Describing the facts and features of a property or the property’s condition in response to a consumer’s inquiry;

8.Completing business or factual information for a consumer on an offer or contract to purchase on behalf of a client;

9.Showing a client through a property being sold by an owner; or

10.Referring a person to another broker or service provider.

8.Referring a person to another broker or service provider; or

9.Listing a broker providing physical or virtual access to a property to an unrepresented customer in which the listing broker has a brokerage agreement with a seller to the property.

ITEM 2.Adopt the following new definitions of “Agency disclosure,” “Compensation,” “Real estate team,” “Representative,” “Showing,” “Wholesaler” and “Wholesaling” in rule 193E—2.1(543B):

“Agency disclosure” means the same as defined in Iowa Code section 543B.5(2).

“Compensation” means payment to a broker or licensee for real estate services performed.

“Real estate team” means two or more licensees assigned to the same broker, working together to provide real estate brokerage services and representing themselves to the public as a team.

“Representative” means a person or entity representing the interests of the client, on the client’s behalf, but that is not the agent or broker of the client.

“Showing” means the act of a licensee providing a client physical or virtual access to a property that is being sold by a seller.

“Wholesaler” means a licensee, or a person represented by a licensee, who acquires an equitable interest, but not legal title, in a residential property for the purpose of selling the equitable interest to a buyer.

“Wholesaling” means the practice of a wholesaler entering into an assignable contract with an owner of residential property for the purpose of marketing and selling the equitable interest of the residential property to another person.

ITEM 3.Rescind the definition of “Subagent” in rule 193E—2.1(543B).