§ 543B.5 — Other definitions

Iowa § 543B.5

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 543B: REAL ESTATE BROKERS AND SALESPERSONS

Text

As used in this chapter, unless the context otherwise requires:
1. “Agency” means a relationship in which a real estate broker acts for or represents
another by the other person’s express authority in a transaction.
2. “Agency disclosure” means a written disclosure between a broker and a client which
identifies the party the broker represents in a transaction.
3. “Appointed agent” means that affiliated licensee who is appointed by the designated
broker of the affiliated licensee’s real estate brokerage agency to act solely for a client of that
brokerage agency to the exclusion of other affiliated licensees of that brokerage agency.
4. “Branch office” means a real estate broker’s office other than a principal place of
business.
5. “Broker associate” means a person who has a broker’s license but is licensed under,
and employed by or otherwise associated with, another broker as a salesperson.
6. “Brokerage” means the business or occupation of a real estate broker.
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
brokerageservicestobeperformedandcontainstheprovisionsrequiredinsection543B.56A.
8. “Brokerage services” means those activities identified in sections 543B.3 and 543B.6.
9. “Buyer’s representation agreement” means a brokerage agreement between a
prospective buyer and a broker.
10. “Client” means a party to a transaction who has a brokerage agreement with a broker
for brokerage services.
11. “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.
12. “Designated broker” means a licensee designated by a real estate brokerage agency
to act for the agency in conducting real estate brokerage services.
13. “Inactivelicense”meanseitherabrokerorsalespersonlicensecertificatethatisonfile
with the real estate commission in the commission office and during which time the licensee
is precluded from engaging in any of the acts of this chapter.
14. “Licensee” means a broker or a salesperson licensed pursuant to this chapter.
15. “Listing” is an agreement between a property owner and another person in which that
person holds or advertises the property to the public as being available for sale or lease.
16. a. “Material adverse fact” means an adverse fact that a party indicates is of such
significance, or that is generally recognized by a competent licensee as being of such
significance to a reasonable party, that it affects or would affect the party’s decision to enter
into a contract or agreement concerning a transaction, or affects or would affect the party’s
decision about the terms of the contract or agreement.
b. For purposes of this subsection, “adverse fact” means a condition or occurrence that is
generally recognized by a competent licensee as resulting in any of the following:
(1) Significantly and adversely affecting the value of the property.
(2) Significantly reducing the structural integrity of improvement to real estate.
(3) Presenting a significant health risk to occupants of the property.
17. “Negotiate” means to act as an intermediary between the parties to a transaction, and
includes any of the following acts:
a. Participating in the parties’ discussion of the terms of a contract or agreement
concerning a transaction.
§543B.5, REAL ESTATE BROKERS AND SALESPERSONS 4
b. Completing, when requested by a party, appropriate forms or other written record to
document the party’s proposal in a manner consistent with the party’s intent.
c. Presenting to a party the proposals of other parties to the transaction and informing
the party receiving a proposal of the advantages and disadvantages of the proposal.
18. “Party”meansapersonseekingtosell, exchange, buy, orrentaninterestinrealestate,
a business, or a business opportunity. “Party” includes a person who seeks to grant or accept
an option to buy, sell, or rent an interest in real estate.
19. “Person” means an individual, partnership, association, corporation, professional
corporation, or professional limited liability company.
20. “Real estate team” means two or more licensees assigned to the same broker working
together to provide real estate brokerage services and representing themselves to the public
as a team.
21. “Regular employee” means a person whose compensation is fixed in advance, who
does not receive a commission, who works exclusively for the owner, and whose total
compensation is subject to state and federal withholding.
22. “Salesperson” means a person who is licensed under, and employed by or otherwise
associated with, a real estate broker, as a selling, renting, or listing agent or representative of
the broker.
23. “Transaction” means the sale, exchange, purchase, or rental of, or the granting or
acceptance of an option to sell, exchange, purchase, or rent an interest in real estate.

Legislative History

[C31, 35, §1905-c25; C39, §1905.22; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.5; 81 Acts, ch 54, §3]