ARC 9481C

ARC 9481C

Rulemaking related to definitions

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on February 19, 2025, as ARC 8850C. A public hearing was held on the following date(s):

●March 11, 2025

The Commission received public comments regarding numbered paragraph “8” under the definition of “ministerial acts,” the amendment of which removes a provision allowing a licensee to complete business or factual information for a consumer on an offer or contract to purchase on behalf of a client. Removing this ministerial act aligns with the 2024 legislation. The Commission received public comments expressing opposition to the proposed amendment citing concerns that such changes would negatively impact sellers, limit buyers’ access to information, and constrain real estate professionals’ ability to conduct business effectively. Opponents further argued that the removal of the provision would diminish consumer choice and transparency by effectively requiring buyers to retain either a licensed real estate agent or an attorney to receive assistance.

Conversely, comments in support of the proposed amendment emphasized that a licensee in an agency relationship with the seller cannot ethically or sufficiently assist the buyer. Supporters noted that even well-intentioned efforts by the seller’s agent could inadvertently result in an unrepresented buyer making uninformed decisions. Additionally, they highlighted that such interactions could lead to agents providing services without compensation.

Minor changes from the Notice have been made to certain definitions and ministerial acts following public comment.

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 543B.5(11).

“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;Providing responses to general consumer inquiries—whether made via telephone, in person, or through digital communication—regarding the availability and pricing of brokerage services, as well as the price, location, condition as reflected on the seller’s disclosure, and distinguishing features of specific properties;

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

3.Setting an appointment to view property;

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

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

6.A listing broker showing a property to a customer to which the listing broker has a brokerage agreement with a seller to the property.

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

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

9.Setting an appointment to view property;

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

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

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

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

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

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

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

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

“Commercial” means property that is used exclusively for business purposes or to generate income and not intended for human inhabitants or property of more than four dwelling units.

“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.

“Residential” means properties that are used primarily for living purposes rather than for business or industrial use.

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

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

[Filed 7/11/25, effective 9/10/25]

[Published 8/6/25]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 8/6/25.