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Chapter 193E Real Estate Brokers and Salespersons Index (PDF)
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Rule Changes --193E Real Estate Brokers and Salespersons

Replacement Sheet


Iowa Administrative Code 193E Replacement Sheet--
Effective October 15, 1997

Chapter 1

193E--1.1(543B) Definitions.

"Specific assistance" means any communication beyond casual conversation concerning the facts and features of a property, which occurs prior to the point of discussing any specific financial qualifications of the buyer or tenant, selling or buying motives or objectives of the seller or buyer, or tenant or landlord, or eliciting or accepting information involving a proposed or preliminary offer associated with a specific property, in which the person may unknowingly divulge any confidential personal or financial information, which if disclosed to the other party, could harm their bargaining position. For the purposes of this rule, specific assistance shall not include a bona fide "open house" showing, preliminary conversations or "small talk" concerning price range, location and property styles, or responses to general factual questions from a potential buyer or tenant concerning properties which have been advertised for sale or lease.

193E--1.37(543B) Disclosure of agency.

1.37(1) A licensee shall not represent any party or parties to a real estate transaction or otherwise act as a real estate broker or salesperson unless that person makes disclosure to all parties to the transaction identifying which party that person represents in the transaction

1.37(2) The disclosure required by subrule 1.37(1) must be made by the licensee at the time the licensee provides specific assistance to the client. A change in licensee's representation that makes the initial disclosure incomplete, misleading, or inaccurate requires that a new disclosure be made immediately.

1.37(3) A written agency disclosure must be made by the licensee to all parties to a real estate transaction identifying which party the licensee represents in the transaction prior to an offer being made or accepted by any party to a transaction. The written disclosure shall be acknowledged by separate signatures of all parties to the transaction prior to any offer being made or accepted by any party to a transaction. A change in the licensee's representation that makes the initial disclosure incomplete, misleading, or inaccurate requires that a new disclosure be made and signed by all parties as soon as practical.

1.37(4) The seller may, in the listing agreement, authorize the seller's broker to disburse part of the broker's compensation to other brokers, including a buyer's broker solely representing the buyer. A broker representing a buyer shall inform the listing broker (if there is one) or, if there is no listing broker, the seller, either verbally or in writing, of the agency relationship before any previewing, showing or negotiations are initiated, whichever comes first. The obligation of either the seller or buyer to pay compensation to a broker is not determinative of the agency relationship.

1.37(5) A licensee may not be agent for both the buyer or tenant and the seller or landlord without obtaining the written consent of both the buyer or tenant and the seller or landlord in compliance with 193E IAC 1.45(543B).

1.37(6) Nothing contained in this rule shall obligate any buyer or tenant, or seller or landlord to pay compensation to a licensee unless the buyer or tenant or seller or landlord has entered into a written agreement with the broker specifying the compensation terms in accordance with Iowa real estate license law and commission rules. Further, nothing shall prohibit a party from entering into a written agreement which contains duties, obligations, and responsibilities which are in addition to those specified in Iowa real estate license law and commission rules.

1.37(7) A licensee may work with a single party in separate transactions pursuant to different relationships including but not limited to selling one property as a seller's agent and working with that seller in buying another property as a buyer's agent, or as an agent or subagent representing the seller, or as dual agent, if the licensee complies with the requirements of Iowa Code chapter 543B and this rule in establishing the relationships for each transaction. If the brokerage has a company policy of disclosed dual agency for in-house transactions, the disclosure of agency relationship shall comply with Iowa law and commission rules including, but not limited to, the requirement to inform the prospective clients that they are not required to consent to dual agency representation as provided by subrule 1.45(2). A general statement in the consent signed by the buyer and seller that the licensee represents both buyer and seller is not sufficient.

1.37(8) An agency relationship disclosure is not required when the licensee is acting solely as a principal and not as an agent for another or when a written communication from the licensee is a solicitation of business.

1.37(9) 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 shall note that fact on a copy of the agency disclosure document and obtain other documentation establishing delivery of the disclosure and maintain the written documentation in the transaction file.

1.37(10) If any seller, landlord, buyer, or tenant rejects dual agency, or refuses to sign a consent to dual agency, the broker cannot act as a dual agent. If any seller, landlord, buyer, or tenant who is a client of the broker refuses to sign a consent to appointed agency by that same broker with respect to the other party to the transaction, then the broker and affiliated licensees cannot act as an appointed agent for such other party to the transaction.

1.37(11) A licensee who is offering real estate brokerage services as an auctioneer shall make the written disclosure to the buyer and obtain the acknowledgment of receipt required by law and rules, not later than prior to the buyer entering into a written purchase agreement for the property. For the purposes of this rule, the identification of the successful bidder shall constitute the first meaningful contact with a buyer when specific assistance is provided. After the first meaningful contact, the first practical opportunity to make the required disclosures to the buyer shall depend upon the circumstances. While it is not required, it is recommended that licensees disclose in all advertisements and flyers that they are licensed agents representing the seller and, prior to crying the auction, announce that they are licensed real estate agents representing the seller.

a. Disclosure under this rule only applies to the day of the auction.

b. If the licensee provides brokerage services prior to the auction, the disclosure would need to be made either orally or in writing prior to or at the time of specific assistance being provided.

1.37(12) The licensee shall retain a copy of the disclosure form signed by the prospective buyer, lessee, seller, or lessor.

a. If an offer is accepted, the signed or noted copy shall be retained by the broker in the closed transaction file for a period of five years from the date of the signature or note.

b. If the offer is not accepted, a signed and noted copy shall be retained with the rejected offer for a period of five years.

1.37(13) Failure of a licensee to comply with this rule is prima facie evidence of a violation of Iowa Code subsection 543B.34(4).

1.37(14) Failure of a licensee to act consistent with disclosure representations made pursuant to this rule is prima facie evidence of a violation of Iowa Code subsection 543B.34(4).

1.37(15) Nothing in this rule shall affect the validity of title to real property transferred based solely on the reason that any licensee failed to conform to the provisions of this rule.

193E--1.41 Rescinded, effective 10/15/97.

193E--1.49 Rescinded, effective 10/15/97.

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