HF 2326 — A bill for an act relating to real estate brokers, the rental or leasing of real estate, and brokerage agreements, and including effective date and applicability provisions.

KimHouse ReynoldsFile O2326 f- fEnrolled iHouse cFile e2326 oAN fACT tRELATING hTO eREAL GESTATE oBROKERS, vTHE eRENTAL rOR nLEASING oOF rREAL AESTATE, dAND aBROKERAGE mAGREEMENTS, GreggAND GINCLUDING OEFFECTIVE VDATE EAND RAPPLICABILITY NPROVISIONS. O R L T G O V E R N O R April19,2024 The HonorablePaulPate SecretaiyofStateofIowa StateCapitol Des Moines,Iowa50319 Dear Mr.Secretary, Iherebytransmit:

HonseFile2326,anActrelatingtorealestatebrokers,therentalorleasingofrealestate,BE andbrokerageagreements,andincludingeffectivedateandapplicabilityprovisions.IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

TheaboveHouseFileisherebyapprovedonthisdate.DIVISION I REAL ESTATE BROKERS AND THE RENTAL OR LEASING OF REAL ESTATE Section 1.

Since^lySection j543B.3, munnumbered Governorparagraph oflow1, cc:Code 2024, is amended to read as follows:

SecretaryoftheSenateAs Clerkused ofthein Housethis STATEchapter, CAPITOL“real Destate Ebroker” Smeans MOINES,a Iperson Oacting Wfor Aanother 50515.281.521Ffor Aa Xfee, 515.725.352Wcommission, Wor Wother .compensation or promise, whether it be for all or part of a person’s time, and who engages directly or indirectly in any of the following acts:

GSec. O V E R N O R .

I2. O W A .

GNEW OSECTION. V U R RIGKT % 5 V W l l m a i n t a / i n i i n m B m n m n m n u n m G E N E R A L A S S E M iiii(»Htim)HiimuiiiMmiinmimiimiiiiniHisimiiiiiiutiimRnignHtiinimimiiit»tiiiiH!it!i!iiM!muimiimiiiii!![i!-i!iiii]iiiiiiiji!{EiiLs;[!'ifiiiiiiiii!iiiiiiii;[!M^i! H o u s e P i l e 2 3 2 6 A N A C T R E L A T I N G T O R E A L E S T A T E B R O K E R S , T H E R E N T A L O R L E A S I N G O F R E A L ESTATE, AND BROKERAGE AGREEMENTS, AND INCLUDING EFFECTIVE D A T E A N D A P P L I C A B I L I T Y P R O V I S I O N S .

B543B.7A EExclusions I—— Trental Eor Nleasing Aon Cbehalf Tof Eanother. D B Y T H E G E N E R A L A S S E M B L Y O F T H E S T A T E O F I O W A :

D I V I S I O N I R E A L E S T A T E B R O K E R S A N D T H E R E N T A L O R L E A S I N G O F R E A L E S T A T E Section 1, Section 543B.3, unnumbered paragraph 1, Code 2024, is amended to read as follows:

As used in this chapter, ^real estate broker'^ means a person acting for another for a fee, commission, or other compensation or promise, whether it be for all or part of a person's time, and who engages directly or indirectly in any of the following a c t s :

S e c .

2 .

NEW S E C T I O N .

543B.7A Exclusions — rental or leasing on behalf of another.

A person who engages in any act under section 543B,3543B.3 that is related to the rental or leasing of real estate on behalf of a partnership, limited partnership, corporation, or limited liability company, and the person has an ownership interest in the partnership, limited partnership, corporation, or limited liability company, which is a parent or subsidiary of, or under common control with the leasing partnership, limited partnership, corporation, or limited liability company.

A person who is a nonlicensed employee of a real estate broker and who engages in advertising, showing, listing, collection of rents and deposits, procuring of prospects, completing form agreements, and executing form agreements as it relates to the rental of real estate under chapter 562A or 6562B. 2 B .

EFFECTIVE DATE,DATE. This division of this Act, being deemed of immediate importance, takes effect upon enactment.

This division of this Act, being deemed of immediate importance, takes effect upon enactment.

This division of this Act applies to proceedings before the real estate commission created in section 543B.8, other administrative proceedings before a state agency or department, and judicial proceedings before a court, that are not finally adjudicated or are otherwise pending on the effective date of this Act, except to the extent such application would affect a person'sperson’s contractual or vested rights.

DDIVISION III VREAL IESTATE SIBROKERS IOAND NBROKERAGE RAGREEMENTS E A L E S T A T E B R OB R O K E R A G E A G R E E M E N T S Sec.

Section 543B.56A, subsection 2, paragraph e, if enacted by 2024 Iowa Acts, Senate File 2291, section 7, is aamended mto eread nas dtfollows: or e aa sf o l l o w s :

e»e. Review the broker's compensation under the brokerage agreement and conspicuously display a statement that the broker's compensation, fees, and commission are negotiable and not established by law.

Review the broker’s compensation under the brokerage agreement and conspicuously display a statement that the broker’s compensation, fees, and commission are negotiable and not established by law .

Section 543B.56A, subsection 3, if enacted by 2024 Iowa Acts, Senate File 2291, section 88, , is amended to read as ffollows: o l l o w s :

A brokerage agreement must be signed by both the broker and the client prior to the broker listing any property for sale on behalf of a seller, or before showing a property to a buyer, or if no property is shown to a buyer, before making House File 2326, p.

3 buyer, or if no property is shown to a buyer, before making an offer on a property on behalf of a buyer.

Section 543B.57, subsection 5, Code 2024, is amended tto orread eas aafollows: sf o l l o w s :

The seller, in the listing agreement, may authorize the seller'sseller’s licensee to disburse part of the licensee'slicensee’s compensation to other licensees, including a buyer'sbuyer’s licensee solely representing the buyer.

A seller may authorize a portion of the proceeds from the sale of real property, or from another source, to pay a buyer'sbuyer’s licensee compensation.

The obligation of either the seller or the buyer to pay compensation to a licensee is not determinative of the PAagency rrelationship. RASSLEY, AMY SINCI^IRR Speaker of the House P r e s i d e t h e S e n a t e I hereby certify that this bill originated in the House and is known as House File 2326, Ninetieth General Assembly.

M______________________________ E______________________________ GPAT HGRASSLEY AAMY NSINCLAIR fSpeaker tof Nthe EHouse LPresident Sof Othe CloiefX^lerkSenate ApprovedI 2hereby 0certify 2that 4this RX^O&DSbill Goriginated oin vthe eHouse rand nis oknown ras House File 2326, Ninetieth General Assembly.

______________________________ MEGHAN NELSON Chief Clerk of the House Approved _______________, 2024 ______________________________ KIM REYNOLDS Governor