§ 543B.60A — Prohibited practices — business referral disclosures

Iowa § 543B.60A

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

Text

1. A licensee shall not request a referral fee after a bona fide offer to purchase is accepted.
2. A licensee shall not request a referral fee after a bona fide listing agreement has been
signed.
3. A licensee shall not offer, promote, perform, provide, or otherwise participate in any
marketing plan that requires a consumer to receive brokerage services, including referral
services,fromtwoormorelicenseesinasinglerealestatetransaction,asarequiredcondition
for the consumer to receive either of the following:
a. Brokerage services from one or more of such licensees.
b. A rebate, prize, or other inducement from one or more such licensees.
25 REAL ESTATE BROKERS AND SALESPERSONS, §543B.62
4. Forpurposesofthissection, “consumer”shallincludepartiesorprospectivepartiestoa
realestatetransaction, clientsorprospectiveclientsofalicensee, orcustomersorprospective
customers of a licensee.
5. This section does not address relationships between a broker and the broker associates
orsalespersonslicensedunder, employedby, orotherwiseassociatedwiththebrokerinareal
estate brokerage agency.
6. A violation of this section is deemed a violation of section 543B.29, subsection 1,
paragraph “d”.
7. The purpose of this section is to prohibit licensee practices that interfere with
contractual arrangements, place improper restrictions on consumer choice, compromise a
licensee’s fiduciary obligations, and create conflicts of interest.
8. AnIowalicenseeisprohibitedfromparticipatinginanymarketingplanorarrangement
prohibited by this section with a person who is licensed or otherwise authorized to engage
in the real estate business in another state or foreign country. This subsection shall not
be interpreted to impact or alter a referral fee structure which otherwise complies with the
requirements of this section.
9. Alicenseeorpersonlicensedinanotherstateorforeigncountrywhoconductsbusiness
in this state or refers business to a licensee in this state shall disclose in writing to the
consumer and to the licensee to whom they are referring business, the name of the consumer
being referred, the name of the referring company, and the amount of compensation they
are receiving for the referral. This subsection shall not affect or restrict business practices
relating to payment methods between listing and selling brokerages, and shall be applicable
strictly to properties containing at least one but not more than four dwelling units.