Iowa Real Estate License Law for Brokers
Iowa real estate practice is governed by Iowa Code Chapter 543B and the rules in IAC Chapter 193E, administered by the Iowa Real Estate Commission within the Professional Licensing Bureau. This chapter covers the licensing authority, the responsible broker, and grounds for discipline.
The Iowa Real Estate Commission
The Iowa Real Estate Commission licenses and regulates brokers and salespersons, investigates complaints, and enforces Chapter 543B and IAC 193E. Anyone performing licensed real estate activity for compensation must be licensed unless specifically exempt. A trade association has no licensing authority.
The Responsible Broker and Salesperson Relationship
Each brokerage must have a broker responsible for the firm's licensed activity, supervision of affiliated licensees, and proper handling of the trust account and records. A salesperson performs licensed activity only for the employing broker, and compensation must flow through the broker rather than directly from a client.
Discipline and Enforcement
The Commission may discipline a broker for violations such as commingling or converting trust funds, failing to supervise affiliated licensees, misrepresentation, and other prohibited conduct. Lawful acts such as negotiating a commission, belonging to a trade association, or exceeding CE minimums are not grounds for discipline.