Agency and Brokerage Relationships in Iowa
Iowa law defines how a licensee may represent consumers and requires clear disclosure of who represents whom. This chapter explains brokerage relationship disclosure, client duties, and the rules for dual agency.
Disclosing the Brokerage Relationship
Iowa licensees must disclose in writing the brokerage relationship, including whom the licensee represents, so consumers are not misled about representation before they commit to a transaction. Disclosing early, before a consumer shares confidential negotiating information, lets a buyer or seller understand whether the licensee is their agent or is representing the other party.
Duties to Clients
A licensee who represents a client owes fiduciary-type duties, including loyalty, obedience to lawful instructions, confidentiality, reasonable care, accounting, and full disclosure of material facts. Even toward a non-client customer, the licensee must be honest and disclose known material adverse facts about the property. These duties frame how a licensee negotiates and advises.
Dual Agency
Iowa permits a broker to act as a disclosed dual agent, representing both the seller and the buyer in the same transaction, only with the written informed consent of both parties. Because a dual agent cannot fully advocate for either side, the licensee must keep each party's confidential information, such as the highest price a buyer will pay, from the other. Consent is documented in the representation and disclosure paperwork.