§ 543B.62 — Duties and liabilities of licensees and parties

Iowa § 543B.62

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

Text

1. Exceptasprovidedinsubsection2, thedutiesofalicenseespecifiedinthischapterorin
rules adopted pursuant to this chapter supersede any fiduciary duties of a licensee to a party
to a transaction based on common law principles of agency to the extent that those common
law fiduciary duties are inconsistent with the duties specified in this chapter or rules adopted
pursuant to this chapter.
2. This section shall not be construed to modify a licensee’s duty under common law as
to negligent or fraudulent misrepresentation of material information.
3. a. A licensee who is providing brokerage services to a client and who retains another
licensee to provide brokerage services to that client is not liable for misrepresentation made
by the other licensee, unless the retaining licensee knew or should have known of the other
licensee’s misrepresentation or the other licensee is repeating a misrepresentation made to
the other licensee by the retaining licensee.
b. A broker is responsible for supervising a salesperson or broker associate employed
by or otherwise associated with the broker as a representative of the broker. The existence
of an independent contractor relationship or any other special compensation arrangement
between the broker and the salesperson or broker associate does not relieve the broker,
salesperson, or broker associate of the duties and responsibilities established by this chapter.
A salesperson or broker associate shall keep the employing broker fully informed of all
activities being conducted on behalf of the broker and any other activities that might impact
§543B.62, REAL ESTATE BROKERS AND SALESPERSONS 26
on the broker’s responsibilities. However, the failure of the salesperson or broker associate
to keep the employing broker fully informed does not relieve the broker of the duties and
responsibilities established by this chapter.
4. a. A licensee providing brokerage services to a client shall not be in possession of
the client’s real estate. A licensee may enter upon the premises of a client’s real estate to
fulfill the licensee’s obligations pursuant to section 543B.3 or 543B.6, or pursuant to a written
agreement between the licensee and the client.
b. A licensee has no duty of care with regard to a client’s real estate or with regard to a
personentering,viewing,ortraversinguponthepremisesofaclient’srealestateotherthanto
fulfill the licensee’s obligations pursuant to section 543B.3 or 543B.6, or pursuant to a written
agreement between the licensee and the client.
c. A licensee providing brokerage services to a client shall not be liable for damage to the
client’s real estate or for any physical injury, accident, or harm to a person entering, viewing,
or traversing upon the premises of a client’s real estate unless the licensee is the direct and
proximate cause of the damage, injury, accident, or harm.
d. A client shall be responsible for the care, maintenance, repair, condition, and safety of
the client’s real estate that is being offered to sell, exchange, buy, or rent to a person.