Relating to the wholesaling of residential property by a wholesaler, and providing civil penalties

Sponsored by the House Commerce Committee

Topics:Business & economy

Same legislation: SF 2290

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 8, 2024
Skipped: SubcommitteeSkipped
Done: House committeeFebruary 19, 2024
Done: Passes the HouseFebruary 19, 202491–0
Skipped: Senate committeeSkipped
Done: Passes the SenateMarch 4, 202446–0
Done: To the GovernorApril 10, 2024
Done: Signed into lawApril 10, 2024

Signed into law What’s a funnel?

What’s in it

This bill relates to the wholesaling of residential property by a wholesaler. “Wholesaling”, “residential property”, and “wholesaler” are defined in the bill. The bill requires a person to be licensed as a real estate broker, or to be represented by a licensee, to engage in wholesaling. The bill permits a licensee to represent a wholesaler in a wholesaling transaction. The bill requires a wholesaler to disclose to all parties to a wholesale transaction prior to executing a contract to purchase or to convey an equitable interest to a buyer or other entity the legal identities of all parties to the wholesale transaction and an explanation of the wholesaling process, including disclosure that the wholesaler holds an equitable interest in the residential property and may not be able to convey title to the property.

Read the full explanation

The bill also requires the wholesaler to provide a copy of an executed agency agreement to all parties prior to executing the contract. If a wholesaler fails to comply with the disclosure requirements, the seller or the buyer may cancel the contract at any time prior to the closing of the sale of residential property without penalty, and may retain any earnest money paid by the wholesaler. An individual engaged in wholesaling in violation of the bill is subject to a civil penalty of up to the greater of $10,000, or percent of the sale price of each residential property for which the individual engaged in wholesaling in violation of the bill. The real estate commission shall adopt rules as necessary to implement and administer the bill.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text · What changed before it passed

Iowa Code it changes

Creates§543B.6A

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

Lobbying

1 for · 0 against · 2 undecided · Who →

Family tree

Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.

90th General Assembly

HF 2394Became lawHouse companion SF 2290Didn’t advanceSenate companion

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.