Agency
Four items. Subchapter II of chapter 543B (sections 543B.55 through 543B.64) sets the statutory duties and supersedes inconsistent common-law fiduciary duties; rule 481-Chapter 2012 fills in the procedure. Iowa recognizes single agency, disclosed dual agency, and appointed agency within a firm.
Duties to Parties and to Clients
Section 543B.56(1) owes every party honesty and good faith, disclosure of all material adverse facts the licensee knows, and an accounting for property received. A "material adverse fact" under section 543B.5(16) is one that significantly and adversely affects value, significantly reduces structural integrity, or presents a significant health risk to occupants - and it need not be disclosed if the party already knows it, could discover it through a reasonably diligent inspection, disclosure is prohibited by law, or the party's own inspector knows it. Section 543B.56(2) adds client duties: place the client's interests ahead of others, disclose material information the client does not know, fulfill the brokerage agreement, disclose any financial interest in a business to which the client is referred, and exercise reasonable skill and care. Section 543B.56(3) bars accepting a fee from someone other than the client without written notice to all parties, and bars acting on the licensee's own behalf, for immediate family, or for a business the licensee has an interest in, without written disclosure to all parties.
Disclosure Timing and Specific Assistance
Section 543B.57(1) bars representing anyone without making an agency disclosure. The disclosure is made when the licensee provides specific assistance, verbally first (rule 481-2012.2(2)), then in writing before any offer, lease or rental agreement is made or signed by a buyer or tenant and before a seller or landlord signs or accepts one, acknowledged by separate signatures (section 543B.57(2)"b"). "Specific assistance" means eliciting or accepting confidential information about a party's real estate needs, motivation or financial qualifications, or information involving a proposed or preliminary offer on specific real estate; it does not mean an open house showing, preliminary conversations about price range, location and property styles, or answering general factual questions about advertised properties. A change that makes the disclosure incomplete, misleading or inaccurate requires an immediate new one. A buyer's licensee must inform the listing licensee of the relationship before negotiations begin, and the obligation to pay compensation never determines the agency relationship (section 543B.57(5), rule 481-2012.2(5)). Signed disclosures - including those attached to rejected offers - are retained five years.
Dual Agency and Appointed Agents
Section 543B.58(1) bars a licensee from being the agent for both buyer and seller without the written consent of both, and the consent must state that full disclosure of the type of representation was made, recite the section 543B.56 duties, and record that the clients understand and consent. Rule 481-2012.5 requires a written company policy permitting in-house dual agency, requires the consent agreement to tell clients that representing more than one party can create a conflict of interest and that they are not obligated to consent, and provides that if any party rejects or refuses to sign, the licensee cannot act as a dual agent. A dual agent must not disclose one client's confidential information to the other. Under section 543B.59 a designated broker may appoint affiliated licensees to represent different clients exclusively; the brokerage and designated broker are not dual agents solely because of the appointment, though an affiliated licensee who personally represents both sides is. Knowledge is not imputed among the firm and its appointed agents. Rule 481-2012.7(1) requires written notice of the appointed agent policy and the named agents before entering into a brokerage agreement, with a place for the client to consent or not consent. Section 543B.63 provides that a licensee is not a subagent merely by MLS membership, and an offer of subagency may not be made through an MLS.
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State-specific details
State exam facts
- State regulator
- Iowa Real Estate Commission (DIAL)
- Exam vendor
- PSI
- Scored questions
- 115
- Time limit
- 180 minutes
Who regulates real estate brokers in Iowa?
The Iowa Real Estate Commission, now within the Department of Inspections, Appeals, and Licensing (DIAL), licenses brokers and salespersons. The Commission contracts with PSI to deliver the exams.
What experience do I need before the Iowa broker exam?
Iowa Code § 543B.15(7) requires 24 months as a licensed salesperson actively engaged in real estate (or substantially equal experience) plus 60 contact hours of Commission-approved broker education completed within the 24 months before the broker exam — on top of the salesperson pre-license course.
How is the Iowa broker exam structured?
PSI bulletin 120 sets the broker exam at 115 scored questions in 180 minutes: a 75-question national portion scored to 80 points (pass 60 points, 120 minutes) and a 40-question Iowa portion worth 40 points (pass 30, 60 minutes). Both portions must be passed. The national portion is scored by points because some national broker items are worth two points.
Sources: https://dial.iowa.gov/licenses/other-professional-licensure/real-estate-licensees, https://test-takers.psiexams.com/api/content/bulletin/120
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