§ 543B.56A — Brokerage agreements — purpose — contents

Iowa § 543B.56A

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

Text

1. The purpose of this section is to promote the protection of the public by establishing
minimumstandardsreasonablyexpectedbythepublicinrelianceupontheprofessionalwork
product of real estate licensees. The reliance of the public and business community on sound
professionalopinionsandassistanceimposesonrealestatelicenseescertainobligationsboth
to their clients and to the public. The purpose of this section is also to assist in ensuring that
licensees’ obligations are met including licensees’ exercising sound independent business
judgment, striving to continuously improve professional business skills and knowledge in the
industry, promoting sound and informative real estate reporting, and exercising the highest
fiduciary duties to clients and the public.
2. A brokerage agreement shall specify that the broker shall, at a minimum, do all of the
following:
a. Accept delivery of and present to the client offers and counteroffers to buy, sell, rent,
lease, or exchange the client’s property or the property the client seeks to purchase or lease.
b. Assist the client in developing, communicating, negotiating, and presenting offers
or counteroffers until a rental agreement, lease, exchange agreement, offer to buy or sell,
or purchase agreement is signed and all contingencies are satisfied or waived and the
transaction is completed.
23 REAL ESTATE BROKERS AND SALESPERSONS, §543B.57
c. Answer the client’s questions relating to the brokerage agreements, listing agreements,
offers, counteroffers, notices, and contingencies.
d. Provide prospective buyers access to listed properties.
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.
3. 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. The brokerage agreement requirements under this subsection that apply to a buyer
shall not apply to customers attending an open house or auction, to a potential buyer of a
property of more than four dwelling units, or to a property that is not intended for human
inhabitance.