House File 2326 - Enrolled
House File 2326
AN ACT
RELATING TO REAL ESTATE BROKERS, THE RENTAL OR LEASING OF REAL
ESTATE, AND BROKERAGE AGREEMENTS, AND INCLUDING EFFECTIVE
DATE AND APPLICABILITY PROVISIONS.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 DIVISION I
2 REAL ESTATE BROKERS AND THE RENTAL OR LEASING OF REAL ESTATE
Section 1. Section 543B.3, unnumbered paragraph 1, Code
2024, is amended to read as follows:
As used in this chapter, “real estate broker” means a person
acting for another for a fee, commission, or other compensation
or promise, whether it be for all or part of a person’s time,
and who engages directly or indirectly in any of the following
acts:
Sec. 2. NEW SECTION. 543B.7A Exclusions —— rental or
leasing on behalf of another.
This chapter shall not apply to any of the following:
1. A person, limited liability company, or limited
partnership who engages in any act under section 543B.3 that
is related to the rental or leasing of real estate on behalf
of a partnership, limited partnership, corporation, or limited
liability company, and the person, limited liability company,
or limited partnership maintains an ownership interest in the
partnership, limited partnership, corporation, or limited
liability company.
 House File 2326, p. 2
2. A person who engages in any act under section 543B.3 that
is related to the rental or leasing of real estate on behalf
of a partnership, limited partnership, corporation, or limited
liability company, and the person has an ownership interest in
the partnership, limited partnership, corporation, or limited
liability company, which is a parent or subsidiary of, or
under common control with the leasing partnership, limited
partnership, corporation, or limited liability company.
3. A person who is a nonlicensed employee of a real estate
broker and who engages in advertising, showing, listing,
collection of rents and deposits, procuring of prospects,
completing form agreements, and executing form agreements as it
relates to the rental of real estate under chapter 562A or 562B.
Sec. 3. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
Sec. 4. RETROACTIVE APPLICABILITY. This division of this
Act applies to proceedings before the real estate commission
created in section 543B.8, other administrative proceedings
before a state agency or department, and judicial proceedings
before a court, that are not finally adjudicated or are
otherwise pending on the effective date of this Act, except to
the extent such application would affect a person’s contractual
or vested rights.
10 DIVISION II
11 REAL ESTATE BROKERS AND BROKERAGE AGREEMENTS
12 Sec. 5. Section 543B.56A, subsection 2, paragraph e, if
13 enacted by 2024 Iowa Acts, Senate File 2291, section 7, is
14 amended to read as follows:
15 e. Review the broker’s compensation under the brokerage
16 agreement and conspicuously display a statement that the
17 broker’s compensation, fees, and commission are negotiable and
18 not established by law.
19 Sec. 6. Section 543B.56A, subsection 3, if enacted by 2024
20 Iowa Acts, Senate File 2291, section 8, is amended to read as
21 follows:
22 3. A brokerage agreement must be signed by both the broker
23 and the client prior to the broker listing any property for
24 sale on behalf of a seller, or before showing a property to a
25 buyer, or if no property is shown to a buyer, before making
 House File 2326, p. 3
26 an offer on a property on behalf of a buyer. This subsection
27 shall not apply to customers attending an open house.
28 Sec. 7. Section 543B.57, subsection 5, Code 2024, is amended
29 to read as follows:
30 5. The seller, in the listing agreement, may authorize
31 the seller’s licensee to disburse part of the licensee’s
32 compensation to other licensees, including a buyer’s licensee
33 solely representing the buyer. A seller may authorize a
34 portion of the proceeds from the sale of real property, or
35 from another source, to pay a buyer’s licensee compensation.
1 A licensee representing a buyer shall inform the listing
2 licensee, if there is a listing licensee, either verbally or in
3 writing, of the agency relationship before any negotiations are
4 initiated. The obligation of either the seller or the buyer
5 to pay compensation to a licensee is not determinative of the
6 agency relationship.
______________________________ ______________________________
PAT GRASSLEY AMY SINCLAIR
Speaker of the House President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2326, Ninetieth General Assembly.
______________________________
MEGHAN NELSON
Chief Clerk of the House
Approved _______________, 2024 ______________________________
KIM REYNOLDS
Governor


Statutes affected:
Introduced: 543B.3
Enrolled: 543B.3, 543B.57