House Study Bill 595 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON STATE GOVERNMENT BILL BY CHAIRPERSON BLOOMINGDALE) A BILL FOR An Act relating to real estate brokers, and the rental or 1 leasing of real estate, and including effective date and 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5538YC (10) 90 nls/ko
H.F. _____ Section 1. Section 543B.3, unnumbered paragraph 1, Code 1 2024, is amended to read as follows: 2 As used in this chapter , real estate broker means a person 3 acting for another for a fee, commission, or other compensation 4 or promise, whether it be for all or part of a persons time, 5 and who engages directly or indirectly in any of the following 6 acts: 7 Sec. 2. NEW SECTION . 543B.7A Exclusions rental or 8 leasing on behalf of another. 9 This chapter shall not apply to any of the following: 10 1. A person, limited liability company, or limited 11 partnership who engages in any act under section 543B.3 that 12 is related to the rental or leasing of real estate on behalf 13 of a partnership, limited partnership, corporation, or limited 14 liability company, and the person, limited liability company, 15 or limited partnership maintains an ownership interest in the 16 partnership, limited partnership, corporation, or limited 17 liability company. 18 2. A person who engages in any act under section 543B.3 that 19 is related to the rental or leasing of real estate on behalf 20 of a partnership, limited partnership, corporation, or limited 21 liability company, and the person is an owner of a partnership, 22 limited partnership, corporation, or limited liability company, 23 which is a parent or subsidiary of, or under common control 24 with the leasing partnership, limited partnership, corporation, 25 or limited liability company. 26 3. A person who is a nonlicensed employee of a real estate 27 broker and who engages in advertising, showing, listing, 28 collection of rents and deposits, procuring of prospects, 29 completing form agreements, and executing form agreements as it 30 relates to the rental, leasing, or property management of real 31 estate. 32 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 33 importance, takes effect upon enactment. 34 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies to 35 -1- LSB 5538YC (10) 90 nls/ko 1/ 3
H.F. _____ proceedings before the real estate commission created in 1 section 543B.8, other administrative proceedings before a 2 state agency or department, and judicial proceedings before 3 a court, that are not finally adjudicated or are otherwise 4 pending on the effective date of this Act, except to the extent 5 such application would affect a persons contractual or vested 6 rights. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanations substance by the members of the general assembly. 10 This bill relates to real estate brokers, and the rental or 11 leasing of real estate. 12 Under current law, a real estate broker is defined as a 13 person acting for another for a fee, commission, or other 14 compensation or promise, who engages directly or indirectly in 15 the acts enumerated in the bill. Under the bill, a real estate 16 broker is defined as a person acting for another for a fee, 17 commission, or other compensation or promise, who engages in 18 the acts enumerated in the bill. 19 The bill creates an exception to Code chapter 543B for a 20 person, limited liability company, or limited partnership who 21 engages in any act that is related to the rental or leasing of 22 real estate on behalf of a partnership, limited partnership, 23 corporation, or limited liability company, and the person, 24 limited liability company, or limited partnership maintains an 25 ownership interest in the partnership, limited partnership, 26 corporation, or limited liability company. The bill creates 27 an exception to Code chapter 543B for a person who engages 28 in an act related to the rental or leasing of real estate on 29 behalf of a partnership, limited partnership, corporation, 30 or limited liability company, and the person is an owner of 31 a partnership, limited partnership, corporation, or limited 32 liability company, which is a parent or subsidiary of, or 33 under common control with the leasing partnership, limited 34 partnership, corporation, or limited liability company. The 35 -2- LSB 5538YC (10) 90 nls/ko 2/ 3
H.F. _____ bill also creates an exception to the Code chapter for a person 1 who is a nonlicensed employee of a real estate broker and 2 who engages in advertising, showing, listing, collecting of 3 rents and deposits, procuring of prospects, completing form 4 agreements, and executing form agreements as it relates to the 5 rental, leasing, or property management of real estate. 6 The bill takes effect upon enactment. 7 The bill applies to all proceedings that are not finally 8 adjudicated or are otherwise pending on the effective date of 9 the bill, except to the extent such application would affect a 10 persons contractual or vested rights. 11 -3- LSB 5538YC (10) 90 nls/ko 3/ 3