Notice of Intended Action
Wholesaling of residential property, ch 22
ARC 8861C
REAL ESTATE COMMISSION[193E]
Notice of Intended Action
Proposing rulemaking related to wholesaling of residential property
and providing an opportunity for public comment
The Real Estate Commission hereby proposes to adopt a new Chapter 22, “Wholesaling of Residential Property,” Iowa Administrative Code.
Legal Authority for Rulemaking
This rulemaking is proposed under the authority provided in Iowa Code section 543B.18.
State or Federal Law Implemented
This rulemaking implements, in whole or in part, Iowa Code chapter 543B as amended by 2024 Iowa Acts, House File 2394, and Iowa Code chapter 17A.
Purpose and Summary
This proposed rulemaking complies with 2024 Iowa Acts, House File 2394. The chapter sets forth supporting guidance to licensees regarding brokerage agreements and reduces repetitive language.
Regulatory Analysis
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
Fiscal Impact
This rulemaking has no fiscal impact to the State of Iowa.
Jobs Impact
After analysis and review of this rulemaking, no impact on jobs has been found.
Waivers
Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Commission for a waiver of the discretionary provisions, if any, pursuant to 481—Chapter 6.
Public Comment
Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Commission no later than 4:30 p.m. on March 11, 2025. Comments should be directed to:
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Ashley Thompson |
Public Hearing
A public hearing at which persons may present their views orally or in writing will be held as follows:
|
March 11, 2025 |
6200 Park Avenue, Suite 100 |
Persons who wish to make oral comments at the public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.
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.
Review by Administrative Rules Review Committee
The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).
The following rulemaking action is proposed:
ITEM 1.Adopt the following new193E—Chapter 22:
CHAPTER 22
WHOLESALING OF RESIDENTIAL PROPERTY
193E—22.1(543B) Real estate wholesaling. A licensed real estate broker may engage in residential real estate wholesaling or represent a nonlicensed wholesaler in a residential real estate transaction provided proper disclosure is made under the guidelines in Iowa Code section 543B.6A.
193E—22.2(543B) Disclosure of wholesaling. A real estate wholesaler shall provide disclosure to all parties to the residential real estate wholesaling transaction prior to executing a contract to purchase or conveying an equitable interest to another party, including but not limited to the following:
22.2(1) The legal identities of all parties to the transaction, including the current titleholder for the residential property, the wholesaler, the purchaser of the equitable interest, and any real estate licensee who represents a party in the transaction.
22.2(2) An explanation of the wholesaling process, including but not limited to the following:
a.A wholesaler holds an equitable interest in the property, not legal title.
b.A wholesaler is selling its equitable interest in the property to another party.
c.A wholesaler may earn a profit from the sale of its equitable interest in the property.
22.2(3) Wholesaling disclosure: “This transaction constitutes real estate wholesaling, meaning the wholesaler holds only an equitable interest in the property and may not be able to convey title.”
193E—22.3(543B) Penalties. Residential real estate wholesalers who do not comply with the required disclosures or licensing requirements shall be subject to a civil fine of up to $10,000 or 10 percent of the sale price for each transaction in violation of Iowa Code section 543B.6A, and the seller or buyer may cancel the contract at any time prior to closing without penalty and retain any earnest money paid by the wholesaler. Civil penalties shall be enforced at the discretion of the real estate commission.
These rules are intended to implement Iowa Code section 543B.6A.
Real Estate Commission
- 200 E Grand Ave
- Ste 300
- Des Moines, IA 50309
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Open For Comments
This notice is open for comments for 17 more day(s). If you'd like to comment, select or click the text you wish to comment on in the document, or click the button below to make a general comment about the document. Comments will be collected through 3/11/2025
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Public Hearing
Official Document
- Wholesaling of residential property, ch 22
- Published on 2/19/2025
- 6 Views , 0 Comments
- Notice of Intended Action
The official published PDF of this document is available from the Iowa General Assembly’s Administrative Rules page.
View the Iowa Administrative Bulletin for 2/19/2025.
Administrative Rule References
The following administrative rule references were added to this document. You may click a reference to view related notices.
Rule 193E-22.1 Rule 193E-22.2 Rule 193E-22.3Iowa Code References
The following Iowa code references were added to this document. You may click a reference to view related notices.
Iowa Code 543B.6A Iowa Code 543B.6A,Keywords
The following keywords and tags were added to this document. You may click a keyword to view related notices.
Disclosure of wholesaling Penalties Real estate wholesalingAbout
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