Bills › 90th General Assembly
HSB 637
Topics:Business & economy
Where it is now
- Done: IntroducedJanuary 30, 2024
- Done: SubcommitteeJanuary 30, 2024
- Done: House committeeFebruary 6, 2024
- Skipped: Passes the HouseContinued as HF 2394
- Next: Senate committee
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Became HF 2394 → Its progress continues under the new number. Go to HF 2394 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.
House subcommittee
Named January 30, 2024. On February 1, 2024 it recommended passage. Vote Total: 3-0.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Iowa Code it changes
Creates§543B.6A
Lobbying
1 for · 0 against · 6 undecided · Who →
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90th General Assembly