Iowa House Bill HSB204

Iowa 2023-2024 Regular Session

• Introduced: 2/23/23
• Refer: 2/23/23

Caption

A bill for an act relating to real estate licensee liability.(See HF 607.)

Impact

The bill introduces significant changes to how liability is handled within real estate transactions. HSB204 stipulates that licensees will no longer be held responsible for damages to property or for personal injuries incurred by individuals accessing a client's real estate unless it can be proved that the licensee was the direct and proximate cause of the incident. This shift places a greater burden of care and maintenance on clients themselves, as they will now be solely responsible for the condition and safety of their properties while listed for sale or rental.

Summary

House Study Bill 204 (HSB204) focuses on the liability of real estate licensees in the state of Iowa. The proposed legislation aims to clarify the responsibilities and liabilities of real estate professionals when offering brokerage services. Under the provisions of HSB204, a licensee is prohibited from possessing a client’s real estate but is allowed to enter the premises to fulfill specific obligations outlined in the bill. This restructuring of responsibilities is intended to protect real estate agents and brokers from potential legal repercussions associated with property safety and maintenance issues.

Contention

Discussion surrounding the implementation of HSB204 has been marked by contention regarding the balance between protecting real estate professionals and ensuring the safety of individuals interacting with listed properties. Critics of the bill argue that by limiting the liability of real estate agents, it may create a situation where clients are less inclined to maintain their properties, thereby affecting the overall safety and integrity of real estate transactions. Proponents, however, contend that this legislation is essential for reducing the legal exposure of real estate professionals, thus allowing them to conduct their business without the fear of unfounded legal claims.