1. Except as provided in subsection 2, the duties of a licensee specified in this chapter or in 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.

Terms Used In Iowa Code 543B.62

  • 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
  • Broker associate: means a person who has a broker's license but is licensed under, and employed by or otherwise associated with, another broker as a salesperson. 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
  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Fiduciary: A trustee, executor, or administrator.
  • Licensee: means a broker or a salesperson licensed pursuant to this chapter. 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
  • Salesperson: means a person who is licensed under, and employed by or otherwise associated with, a real estate broker, as a selling, renting, or listing agent or representative of the broker. See Iowa Code 543B.5
  • 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. 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 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.
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