"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.
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.
Rescinded, effective 10/15/97.
Rescinded, effective 10/15/97.