§ 543B.56 — Duties of licensees

Iowa § 543B.56

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

Text

1. Duties to all parties in a transaction. In providing brokerage services to a client to a
transaction, a licensee shall do all of the following:
a. Treat all parties to a transaction with honesty and good faith.
§543B.56, REAL ESTATE BROKERS AND SALESPERSONS 22
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.
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.
2. Duties to a client. In addition to the licensee’s duties under subsection 1, a licensee
providing brokerage services to a client shall do all of the following:
a. Place the client’s interests ahead of the interests of any other party, unless loyalty to
a client violates the licensee’s duties under subsection 1, section 543B.58, or under other
applicable law.
b. Disclose to the client all information known by the licensee that is material to the
transaction and that is not known by the client or could not be discovered by the client
through a reasonably diligent inspection.
c. Fulfill any obligation that is within the scope of the brokerage agreement, except those
obligations that are inconsistent with other duties that the licensee has under this chapter or
any other law.
d. Disclose to a client any financial interests the licensee or the brokerage has in any
business entity to which the licensee or brokerage refers a client for any service or product
related to the transaction.
e. Diligently exercise reasonable skill and care in providing brokerage services.
3. Prohibited conduct. In providing brokerage services, a licensee shall not do either of
the following:
a. Accept a fee or compensation related to a transaction from a person other than
the licensee’s client, unless the licensee has provided written notice to all parties to the
transaction that a fee or compensation will be accepted by the licensee from such person.
b. Act in a transaction on the licensee’s own behalf, on behalf of the licensee’s immediate
family or brokerage, or on behalf of an organization or business entity in which the licensee
hasaninterest, unlessthelicenseehasprovidedwrittendisclosureoftheinteresttoallparties
to the transaction.