ARC 8857C

ARC 8857C

Proposing rulemaking related to disclosure of relationships
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 paragraph 12.2(3)“b” as follows:

b.The written disclosure is acknowledged by separate signatures of all parties to the transaction. A change in the licensee’s representation that makes the initial written disclosure incomplete, misleading, or inaccurate obligates that a new verbal disclosure be made whichthat is followed by a new written disclosure signed by all parties to the transaction as soon as practical.

ITEM 2.Amend subrule 12.2(6) as follows:

12.2(6) Nothing contained in this rule bars a party from entering into a written listing or brokerage agreement with a broker whichthat contains duties, obligations, and responsibilities that are in addition to those specified in Iowa real estate license law and commission rules.

ITEM 3.Amend subrule 12.2(10) as follows:

12.2(10) If the seller, landlord, buyer, or tenant rejects representation, or refuses to sign the agency disclosure document, or refuses to sign acknowledging receipt of the disclosure, the licensee notes that fact and includes the date, place, time, and the names of others in attendance on a copy of the agency disclosure document and obtains other documentation establishing delivery of the disclosure and maintains the written documentation, including but not limited to copies of facsimile, restricted delivery certified mail, and other communications, in the transaction file.

ITEM 4.Amend subrule 12.2(17) as follows:

12.2(17) The licensee offering brokerage services to a person as a buyer’s or tenant’s agent, or who is providing brokerage services to a person as a seller’s or landlord’s agent, discloses in writing to that person the type or types of brokerage relationships the broker and affiliated licensees are offering to that person before entering into a listing or brokerage agreement with that person.

ITEM 5.Amend subparagraph 12.3(1)“c”(7) as follows:

(7)Providing brokerage services to all parties to the transaction honestly and in good faith;

ITEM 6.Amend subrule 12.3(2) as follows:

12.3(2) Duty to a buyer or tenant. A licensee acting as an exclusive seller’s or exclusive landlord’s agent discloses to any customer all material adverse facts actually known by the licensee pursuant to Iowa Code section 543B.56.

a.  and b. No change.

c. A seller or landlord may agree in writing with an exclusive seller’s or exclusive landlord’s agent that other designated brokers may be retained or compensated as subagents, and any broker acting as a subagent on the seller’s or landlord’s behalf is an agent with the same obligations and responsibilities to the seller or landlord as the primary broker of the seller or landlord.

d. c.A real estate brokerage engaged by a seller or landlord in a real estate transaction may provide assistance to an unrepresented buyer or tenant by performing such acts as preparing offers and conveying those offers to the seller or landlord and providing information and assistance concerning professional services not related to real estate brokerage services.

ITEM 7.Amend subrule 12.3(3) as follows:

12.3(3) Alternative properties. The licensee may show alternative properties not owned by the seller or landlord to prospective buyers or tenants and may list competing properties for sale or lease without breaching any duty or obligation to the seller or landlord.

ITEM 8.Amend subparagraph 12.4(1)“c”(7) as follows:

(7)Providing brokerage services to all parties to the transaction honestly and in good faith;

ITEM 9.Amend subrules 12.4(2) and 12.4(3) as follows:

12.4(2) Duty to a seller or landlord. A licensee acting as an exclusive buyer’s or an exclusive tenant’s agent discloses to any customer all material adverse facts actually known by the licensee, pursuant to Iowa Code section 543B.56.

a.  and b. No change.

c. A buyer or tenant may agree in writing with a buyer’s or tenant’s agent that other designated brokers may be retained or compensated as subagents, and any broker acting as a subagent on the buyer’s or tenant’s behalf is a single agent with the same obligations and responsibilities to the buyer or tenant as the primary broker of the buyer or tenant.

d. c.A real estate brokerage engaged by a buyer or tenant in a real estate transaction may provide assistance to an unrepresented seller or landlord by performing such acts as preparing offers and conveying those offers to the buyer or tenant and providing information and assistance concerning professional services not related to real estate brokerage services.

12.4(3) Competing buyers or tenants. The licensee may show properties in which the buyer or tenant is interested to other prospective buyers or tenants, may assist other competing buyers or tenants, and may enter into brokerage service agreements with other competing buyers or tenants without breaching any duty or obligation to the buyer or tenant.

ITEM 10.Amend paragraph 12.5(4)“b” as follows:

b.The potential dual agency agreement should be provided to the buyer or tenant prior to entering into a buyer or tenant agency agreement or a contract for buyer or tenant brokerage services.

ITEM 11.Amend rule 193E—12.6(543B) as follows:

193E—12.6(543B) Appointed agents within a brokerage. Iowa Code section 543B.59 authorizes a designated broker to elect to appoint in writing one or more different licensees affiliated with the broker to act as agent to represent exclusively different clients in the same transaction, to the exclusion of all other affiliated licensees within the real estate brokerage. A licensee cannot disclose, except to the licensee’s designated broker, information made confidential by request or instructions of the client the licensee is representing or otherwise confidential by statute or rule, except information allowed by this chapter or mandated to be disclosed by law.

12.6(1) No change.

12.6(2) The designated broker may decide that since both seller and buyer, or landlord and tenant, brokerage relationships are being offered to consumers by the broker’s company, only the affiliated licensee who, on behalf of the designated broker, entered into the listing agreement with the seller or leasing agreement with the landlord will represent the seller or landlord as that client’s agent. In that scenario, all other licensees affiliated with the designated broker willmay represent buyers or tenants as their agents in any transactions dealing with the subject property.

12.6(3) The designated broker may decide that since both seller and buyer, or landlord and tenant, brokerage relationships are being offered to consumers by the broker’s company, only the affiliated licensee who, on behalf of the designated broker, entered into the buyer representation agreement with the buyer or leasing agreement with the tenant will represent the buyer or tenant as that client’s agent. In that scenario, other licensees affiliated with the designated broker may represent sellers or landlords as their agents in any transactions dealing with the subject property.

12.6(3) 12.6(4) If any seller, landlord, buyer, or tenant who is a client of the broker refuses to sign and consent to the appointed agent within the brokerage appointed by that same broker for the other party to the transaction, then the broker and licensees affiliated with the broker cannot act as an appointed agent for that other party.

ITEM 12.Amend subrule 12.7(1) as follows:

12.7(1) Prior to entering into a listing or brokerage agreement, a real estate brokerage notifies a client in writing of the real estate brokerage’s appointed agent policy and those affiliated licensees in accordance with Iowa Code section 543B.59(1). The appointed agent disclosure includes, at a minimum, the following provisions:

a.  to e. No change.