Amendment S-5106 to HF 2326
Relating to real estate brokers, the rental or leasing of real estate, and brokerage agreements, and including effective date and applicability provisions
Adopted · April 1, 2024
Filed April 1, 2024 in the Senate by Sen. Scott Webster (R)
What it changes
- Page 1, before line 1 by inserting: “DIVISION I REAL ESTATE BROKERS AND THE RENTAL OR LEASING OF REAL ESTATE”
- Page 1, line 33, after “This” by inserting “division of this”
- Page 1, line 35, after “This” by inserting “division of this”
- Page 2, after line 7 by inserting: “DIVISION ___ REAL ESTATE BROKERS AND BROKERAGE AGREEMENTS Sec. ___. Section 543B.56A, subsection 2, paragraph e, if enacted by 2024 Iowa Acts, Senate File 2291, section 7, is amended to read as follows: 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 . Sec. ___. Section 543B.56A, subsection 3, if enacted by 2024 Iowa Acts, Senate File 2291, section 8, is amended to read as follows:
- 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 an offer on a property on behalf of a buyer. This subsection shall not apply to customers attending an open house. Sec. ___. Section 543B.57, subsection 5, Code 2024, is amended to read as follows:
- The seller, in the listing agreement, may authorize the seller’s licensee to disburse part of the licensee’s compensation to other licensees, including a buyer’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’s licensee compensation. A licensee representing a buyer shall inform the listing licensee, if there is a listing licensee, either verbally or in writing, of the agency relationship before any negotiations are initiated. The obligation of either the seller or the buyer to pay compensation to a licensee is not determinative of the agency relationship.”
- Title page, by striking lines 1 and 2 and inserting “An Act relating to real estate brokers, the rental or leasing of real estate, and brokerage agreements, and including effective date and”
- By renumbering as necessary.