1. A licensee shall not represent any party or parties to a transaction or otherwise as a licensee unless that licensee makes an agency disclosure to the party or parties represented by the licensee.
Terms Used In Iowa Code 543B.57
- Agency: means a relationship in which a real estate broker acts for or represents another by the other person's express authority in a transaction. See Iowa Code 543B.5
- Brokerage: means the business or occupation of a real estate broker. See Iowa Code 543B.5
- Brokerage services: means those activities identified in sections 543B. See Iowa Code 543B.5
- Client: means a party to a transaction who has an agency agreement with a broker for brokerage services. See Iowa Code 543B.5
- Customer: means a consumer who is not being represented by a licensee but for whom the licensee may perform ministerial acts. See Iowa Code 543B.5
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Licensee: means a broker or a salesperson licensed pursuant to this chapter. See Iowa Code 543B.5
- Listing: is a n agreement between a property owner and another person in which that person holds or advertises the property to the public as being available for sale or lease. See Iowa Code 543B.5
- Party: includes a person who seeks to grant or accept an option to buy, sell, or rent an interest in real estate. See Iowa Code 543B.5
- Person: means an individual, partnership, association, corporation, professional corporation, or professional limited liability company. See Iowa Code 543B.5
- property: includes personal and real property. See Iowa Code 4.1
- real estate: means real property wherever situated, and includes any and all leaseholds or any other interest or estate in land, and business opportunities which involve any interest in real property. See Iowa Code 543B.4
- Transaction: means the sale, exchange, purchase, or rental of, or the granting or acceptance of an option to sell, exchange, purchase, or rent an interest in real estate. See Iowa Code 543B.5
2. a. The disclosure required in subsection 1 shall be made by the licensee at the time the licensee provides specific assistance to the client. A change in a licensee’s representation that makes the initial disclosure incomplete, misleading, or inaccurate requires that a new disclosure be made immediately.
b. A written disclosure is required to be made to the client prior to an offer being made or accepted. The written disclosure shall be acknowledged by separate signatures of the party or parties represented by the licensee prior to any offer being made or accepted by any party to a transaction.
c. For purposes of this section, “specific assistance” means eliciting or accepting confidential information about a party’s real estate needs, motivation, or financial qualifications, or eliciting or accepting information involving a proposed or preliminary offer associated with specific real estate. “Specific assistance” does not mean an open house showing, preliminary conversations concerning price range, location, and property styles, or responding to general factual questions concerning properties which have been advertised for sale or lease.
3. The written agency disclosure form shall contain all of the following:
a. A statement of which party is the licensee’s client or, if the licensee is providing brokerage services to more than one client as provided under section 543B.60, a statement of all persons who are the licensee’s clients.
b. A statement of the licensee’s duties to the licensee’s client under section 543B.56, subsections 1 and 2.
c. Any additional information that the licensee determines is necessary to clarify the licensee’s relationship to the licensee’s client or customer.
4. This section does not prohibit a person from representing oneself.
5. The seller, in the listing agreement, may authorize the seller’s licensee to disburse part of the licensee’s compensation to other licensees, including a buyer’s licensee solely representing the buyer. A licensee representing a buyer shall inform the listing licensee, if there is a listing licensee, either verbally or in writing, of the agency relationship before any negotiations are initiated. The obligation of either the seller or the buyer to pay compensation to a licensee is not determinative of the agency relationship.