Commission Approved for Notice of Intended Action: July 1, 1999
Filed as Notice of Intended Action: July 23, 1999
Published as ARC # 9258A August 11, 1999
Public Hearing: August 31, 1999
Commission Adopted: September 23, 1999
Date Filed Adopted: October 1, 1999
Adopted Published ARC # 9432A
Effective Date: November 24, 1999

REAL ESTATE COMMISSION [193E]
Adopted and Filed

Pursuant to the authority of Iowa Code section 543B.9, the Real Estate Commission hereby amends Chapter 3, "Pre-license Education and Continuing Education," Iowa Administrative Code.

The amendments to Chapter 3 establish specific guidelines for approval of live classroom courses, distance education courses and home-study courses.

Other amendments are for purposes of removing dates that have passed.

An additional amendment clarifies that non-resident broker and broker associates and licensees who qualify under rule 193E-2.3 (543B) or obtain a reciprocal license shall complete the brokerage management courses on a one-time-only basis, at the time of the licensee’s first Iowa renewal, unless there is a reciprocal education agreement between the states.

Notice of Intended Action was published in the August 11, 1999, Iowa Administrative Bulletin as ARC 9258A. The adopted amendments are identical to those published under Notice.

No one appeared at the public hearing held August 31, 1999, at 9 am. in the Professional Licensing Conference Room, Second Floor, Department of Commerce Building, 1918 SE. Hulsizer, Ankeny, IA.

We received one e-mail from a course developer, asking for clarification as to whether the distance education guidelines that apply to Internet courses also apply to courses delivered on the Intranet.

These amendments were approved at the September 23, 1999, meeting of the Real Estate Commission.

These amendments are intended to implement Iowa Code chapter 543B.15.

These amendments will become effective on November 24, 1999.

The following amendments are adopted.

Item 1. Amend subrule 3.2(2) as follows:

3.2(2) Salespersons licensed on June 1, 1994, and thereafter must complete 36 hours of commission–approved classroom education to renew to active status by December 31 of the third year of licensure. To maintain active status, all first- time salesperson renewals shall complete thirty-six commission-approved classroom hours by December 31 of the third year of licensure. The following courses satisfy the first license renewal continuing education requirement:

Developing Professionalism and Ethical Practices…... 12 hours
Buying Practices………………………………………….12 hours
Listing Practices………………………………………….12 hours

Item 2. Amend subrule 3.2(3) as follows:

3.2(3) Beginning January 1, 1996, the The required course of study for the broker licensing examination shall consist of at least 72 classroom hours. Approved courses shall be completed within 24 months prior to taking the broker examination and shall include the following subjects:

Contract law and contractwriting ……………………………………8 hours
Iowa real estate trust accounts……………………………………… 8 hours
Principles of appraising & market analysis ……………………… 8 hours
Real estate law and agency law ………………………………… 8 hours
Real estate finance……………………………………………………8 hours
Federal and state laws affecting Iowa practice ……………………8 hours
Real estate office organization ……………………………………8 hours
Real estate office administration ……………………………………8 hours
Human resources management ……………………………………8 hours

Item 3. Amend subrule 3.3(2) as follows:

3.3(2) As a requirement of license renewal in an active status, each real estate licensee shall complete a minimum of 36 hours of approved programs, courses or activities. The continuing education must be completed during the three calendar years of the license term and cannot be carried over to another license term.

Beginning with brokers and broker-associates renewing December 2001 and thereafter and salespersons renewing December 1998 and thereafter, approved courses in the following subjects shall be completed to renew to active status, except in accordance with 3.2(2):

Law update 8 hours
Ethics 4 hours
Electives 24 hours

Approved courses in the following subjects shall be completed one-time-only by all brokers and broker-associates, licensed prior to January 1,1998,. beginning with those licensees renewing December 1998 and 1999, and ending with those licensees renewing December 2000: All brokers and broker associates licensed prior to January 1, 1998, shall complete courses in the following subjects on a one-time-only basis. Non resident licensees are exempt if an education agreement is in place between Iowa and the nonresident state. Brokers and broker associates who have completed the brokerage management courses, as part of the 72-hour broker prelicense, are not required to repeat the courses and shall comply with the requirements of 3.3(2) to maintain active status.

Real estate office administration 8 hours
Real estate office organization 8 hours
Human resources management 8 hours

Electives 12 hours

Substantially similar courses may be substituted in accordance with 3.2(5). To qualify for consideration, the course content must reflect current brokerage practices and should have been completed during the three calendar years of the license term, or within a reasonable period of time prior to expiration of the license.

Item 4. Amend subrule 3.4(1) as follows:

3.4(1) Qualifying activity. The commission may approve live classroom instruction, and distance education programs and paper and pencil home-study courses, and activities subject to the following conditions:

a. The course pertains to real estate topics that are integrally related to the real estate industry; and

b. The course allows the participants to achieve a high level of competence in serving the objectives of consumers who engage the services of licensees; and c. The course qualifies for at least three credit hours. ; and

d. The course application is accompanied by a comprehensive course outline that includes: Requirements for live instruction courses. The commission may approve live classroom programs, subject to the following requirements. The course application is accompanied by a comprehensive course outline that includes:

1. Course description.
2. Course purpose.
3. Difficulty level.
4. Learning Detailed learning objectives for each major topic that specify the level of knowledge or competency the student should demonstrate upon completing the course.
5. Description of the instructional methods utilized to accomplish the learning objectives.
6. Copies of all instructor and student course materials.
7. Course examination(s) or the diagnostic assessment methods(s) utilized to achieve the course learning objectives when applicable.
8. A description of the plan in place to periodically review course material with regard to changing national and state statutes.
9. A statement of any attendance make-up policy that the school has in place.
   e. The commission may approve distance education programs, subject to the following requirements:

(1) The provider’s purpose or mission statement is available to the public.

(2) The course outline must include clearly stated learning objectives and desired student competencies for each module of instruction and a description of how the program promotes interaction between the learner and the program.

(3) Course content must be accurate and up-to-date. Provider must describe the plan in place to periodically review course material with regard to changing national and state statutes.

(4) Course must be designed to ensure that student progress is evaluated at appropriate intervals and mastery of the material is achieved before a student can progress through the course material.

(5) Qualified individuals are involved in the design of the course.

(6) Provider must list individuals who provide technical support to students and state the specific times that support is available.

(7) A manual shall be provided to each registered student. It shall include, but not be limited to; faculty contact information, student assignments and course requirements, broadcast schedules, testing information, passing scores, resource information, fee schedule and refund policy.

(8) Provider must retain a signed statement by the student that affirms that the student completed the required work and examinations.

(9) Providers must state in the course materials that the information presented in the course should not be used as a substitute for competent legal advice.

(10) Courses submitted for approval must be sufficient in scope and content to justify the hours requested by the provider.
(f) Requirements for paper and pencil home-study courses. The commission may approve paper and pencil home-study courses, subject to the following requirements:

1. Courses must be arranged in chapter format and include a table of contents.
2. Overview statements must be included for each chapter (a preview of the content of the chapter).
3. Courses must be designed to ensure that student progress is evaluated at appropriate intervals. This assessment process shall measure what each student has learned and not learned at regular intervals throughout each module of the course. Quizzes must be completed and returned to the provider to receive credit for the course.
4. Final exams must contain a minimum of 30 questions for a three-hour course and 60 questions for a six-hour course.
5. A passing score of 90 percent is required to receive credit for a course. There is no limit to the number of times a final exam may be taken to achieve a passing score.
6. Licensees have six months from the date of purchase to complete all quizzes and assignments and to pass the final exam.
7. Providers must include information that clearly informs the licensee of the course completion deadline, passing score required, chapter quiz completion requirements and any other relevant information regarding the course.
8. Providers must state in the course materials that the information presented in the course should not be used as a substitute for competent legal advice.
9. Provider must retain a signed statement by the student that affirms that the student completed the required work and exams.
10. Providers must be available to answer student questions or provide assistance as necessary during normal business hours.
11. Courses submitted for approval must be sufficient in scope and content to justify the hours requested by the provider.
    

e.g. It is conducted by individuals who have shown proof of attendance at an instructor development workshop within 12 months preceding approval by the commission and met the instructor qualification criteria. Guest speakers and individuals currently certified by a nationally recognized organization that requires similar instructor standards are exempt, with prior approval of the commission, from the following standards and the instructor development workshop requirement. An applicant may be approved as an instructor when it is determined that the applicant evidences (1) the ability to teach and communicate and (2) in-depth knowledge of the subject matter proposing to teach.

(1) and (2) No change.

Roger L. Hansen, Executive Secretary
Iowa Real Estate Commission