Contracts
Five items - the second-largest Iowa area. Almost all of it is Iowa Code section 543B.56A and rule 481-Chapter 2011, and the signing requirement in section 543B.56A(3) has been rewritten three times in two sessions, so read the current composite rather than any single bill.
When a Brokerage Agreement Must Be Signed
Section 543B.56A(3) now reads: "A brokerage agreement must be signed by both the broker and the client prior to the broker listing any property for sale on behalf of a seller, or before showing a property to a buyer, or if no property is shown to a buyer, before making an offer on a property on behalf of a buyer. The brokerage agreement requirements under this subsection that apply to a buyer shall not apply to customers attending an open house or auction, to a potential buyer of a property of more than four dwelling units, or to a property that is not intended for human inhabitance." The history explains why sources disagree: 2024 Iowa Acts ch. 1052 (SF 2291) created subsection 3 with only the listing and offer triggers; 2024 Iowa Acts ch. 1072 (HF 2326, Division II) amended that subsection "if enacted by" SF 2291 in the same session, adding the showing trigger and the open-house exemption, so SF 2291's enrolled wording was never the operative text; and 2025 Iowa Acts ch. 83 (SF 314) added the auction, more-than-four-unit and uninhabitable carve-outs. Rule 481-2011.1 adds that a buyer representation agreement is required for all residential properties, with open houses, auctions and commercial properties exempt.
Contents, Term and Copies
Rule 481-2011.1 requires all brokerage agreements to be in writing, to state the amount of compensation with a disclosure that compensation is negotiable and not set by law, to carry the signatures of all parties, and to have "a definite expiration date not to exceed one calendar year in length from the effective date, for residential properties." An exclusive agreement must clearly say that it is one, and a legible copy goes to the client as soon as the client's signature is obtained. Section 543B.56A(2) requires the agreement to specify that the broker will accept and present offers and counteroffers, assist in developing and negotiating them until the transaction is completed, answer the client's questions, provide prospective buyers access to listed properties, and "review the broker's compensation under the brokerage agreement and conspicuously display a statement that the broker's compensation, fees, and commission are negotiable and not established by law." Rule 481-2011.2(1) adds a required disclosure of the brokerage's policy on cooperating with and compensating other brokerages. Rule 481-2011.2(2) ends the relationship at the agreed expiration or by written termination, never exceeding 12 months.
Net Listings, Protective Clauses and Compensation Rules
Rule 481-2011.1(5) bars net listings outright: no licensee makes or enters into an agreement specifying a net sale price to the owner with the excess going to the broker, and taking one is unprofessional conduct and a violation of the license law. Note the vocabulary - Iowa renamed the agency agreement an "agency disclosure" and made "brokerage agreement" the umbrella term, but this rule still says "net listing agreement." A licensee may not solicit or enter into a brokerage agreement with someone the licensee knows has an unexpired exclusive agreement with another broker unless that person initiates the discussion. To enforce a protective clause past expiration, rule 481-2011.5 requires a provision establishing a definite protection period plus written delivery, before expiration, of the names and contact information of the protected persons or the list of properties shown. Rule 481-2011.4 requires a legible copy of every executed instrument to be delivered to each party as soon as practicable, with the broker retaining copies for five years. Compensation may be paid by any party or split between brokers, splitting requires the client's written consent, undisclosed compensation and rebates are barred, and paying an unlicensed third party for brokerage activity is prohibited by rule 481-2011.6(1).
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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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