Bill Text: IA SF2291 | 2023-2024 | 90th General Assembly | Enrolled
Bill Title: A bill for an act relating to real estate brokers and brokerage agreements. (Formerly SSB 3132.) Effective date: 07/01/2024.
Spectrum: Committee Bill
Status: (Passed) 2024-04-19 - Signed by Governor. S.J. 953. [SF2291 Detail]
Download: Iowa-2023-SF2291-Enrolled.html
Senate
File
2291
-
Enrolled
Senate
File
2291
AN
ACT
RELATING
TO
REAL
ESTATE
BROKERS
AND
BROKERAGE
AGREEMENTS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
543B.3,
subsection
9,
Code
2024,
is
amended
to
read
as
follows:
9.
Prepares
offers
to
purchase
or
purchase
agreements,
listing
contracts,
buyer’s
representation
agreements,
agency
disclosures,
real
property
residential
and
agricultural
rental
agreements,
real
property
commercial
rental
agreements
of
one
year
or
less,
and
groundwater
hazard
statements,
including
any
modifications,
amendments,
or
addendums
to
these
specific
documents.
Sec.
2.
Section
543B.5,
subsections
2,
7,
9,
and
10,
Code
2024,
are
amended
to
read
as
follows:
2.
“Agency
agreement”
“Agency
disclosure”
means
a
written
agreement
disclosure
between
a
broker
and
a
client
which
identifies
the
party
the
broker
represents
in
a
transaction.
7.
“Brokerage
agreement”
means
a
contract
between
a
broker
and
a
client
which
establishes
the
relationship
between
the
parties
as
to
,
and
the
broker’s
compensation
for,
the
brokerage
services
to
be
performed
and
contains
the
provisions
required
in
section
543B.56A
.
9.
“Client”
means
a
party
to
a
transaction
who
has
an
agency
a
brokerage
agreement
with
a
broker
for
brokerage
services.
Senate
File
2291,
p.
2
10.
“Customer”
means
a
consumer
who
is
not
being
represented
by
a
licensee
under
a
brokerage
agreement
but
for
whom
the
licensee
may
perform
ministerial
acts.
Sec.
3.
Section
543B.5,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
8A.
“Buyer’s
representation
agreement”
means
a
brokerage
agreement
between
a
prospective
buyer
and
a
broker.
Sec.
4.
Section
543B.56,
subsection
1,
Code
2024,
is
amended
to
read
as
follows:
1.
Duties
to
all
parties
in
a
transaction.
In
providing
brokerage
services
to
all
parties
a
client
to
a
transaction,
a
licensee
shall
do
all
of
the
following:
a.
Provide
brokerage
services
to
Treat
all
parties
to
the
a
transaction
honestly
and
in
with
honesty
and
good
faith.
b.
Diligently
exercise
reasonable
skill
and
care
in
providing
brokerage
services
to
all
parties.
c.
b.
Disclose
to
each
party
all
material
adverse
facts
that
the
licensee
knows
except
for
the
following:
(1)
Material
adverse
facts
known
by
the
party.
(2)
Material
adverse
facts
the
party
could
discover
through
a
reasonably
diligent
inspection,
and
which
would
be
discovered
by
a
reasonably
prudent
person
under
like
or
similar
circumstances.
(3)
Material
adverse
facts
the
disclosure
of
which
is
prohibited
by
law.
(4)
Material
adverse
facts
that
are
known
to
a
person
who
conducts
an
inspection
on
behalf
of
the
party.
d.
c.
Account
for
all
property
coming
into
the
possession
of
a
licensee
that
belongs
to
any
party
within
a
reasonable
time
of
receiving
the
property.
Sec.
5.
Section
543B.56,
subsection
2,
paragraph
c,
Code
2024,
is
amended
to
read
as
follows:
c.
Fulfill
any
obligation
that
is
within
the
scope
of
the
agency
brokerage
agreement,
except
those
obligations
that
are
inconsistent
with
other
duties
that
the
licensee
has
under
this
chapter
or
any
other
law.
Sec.
6.
Section
543B.56,
subsection
2,
Code
2024,
is
amended
by
adding
the
following
new
paragraph:
Senate
File
2291,
p.
3
NEW
PARAGRAPH
.
e.
Diligently
exercise
reasonable
skill
and
care
in
providing
brokerage
services.
Sec.
7.
Section
543B.56A,
subsection
2,
Code
2024,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
e.
Review
the
broker’s
compensation
under
the
brokerage
agreement.
Sec.
8.
Section
543B.56A,
Code
2024,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3.
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
making
an
offer
on
a
property
on
behalf
of
a
buyer.
Sec.
9.
Section
543B.60,
Code
2024,
is
amended
to
read
as
follows:
543B.60
Licensees
providing
services
in
more
than
one
transaction.
A
licensee
may
provide
brokerage
services
simultaneously
to
more
than
one
party
in
different
transactions
unless
the
licensee
agrees
with
a
client
that
the
licensee
is
to
provide
brokerage
services
only
to
that
client.
If
the
licensee
and
a
client
agree
that
the
licensee
is
to
provide
brokerage
services
only
to
that
client,
the
agency
agreement
disclosure
required
under
section
543B.57,
subsection
1
,
shall
contain
a
statement
of
that
agreement.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2291,
Ninetieth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor
