Iowa Real Estate License Law
Iowa real estate practice is governed by Iowa Code Chapter 543B and the administrative rules of the Iowa Real Estate Commission. This chapter covers who must be licensed, how salespersons work under a broker, and the Commission's enforcement authority.
The Iowa Real Estate Commission and Chapter 543B
The Iowa Real Estate Commission, operating within the state's professional licensing structure, issues and regulates real estate licenses under Iowa Code Chapter 543B. Anyone who, for compensation, lists, sells, buys, leases, or negotiates real estate for others must be licensed unless a specific exemption applies, such as an owner dealing with their own property. The Commission investigates complaints, adopts rules, and may deny, suspend, or revoke licenses.
Salesperson and Broker Relationship
A salesperson's license is valid only while the salesperson is associated with and acting for a licensed Iowa broker. All licensed activity is conducted on behalf of the broker, who supervises the salesperson and is responsible for handling trust funds. A salesperson may not accept a commission directly from a buyer or seller; compensation flows through the employing broker.
Enforcement and Discipline
The Commission may discipline licensees for fraud, misrepresentation, dishonest dealing, commingling or converting trust funds, false advertising, and other violations of Chapter 543B or its rules. Sanctions can include reprimands, civil penalties, license suspension, or revocation after notice and an opportunity for a hearing. Consumer protection is a central purpose of the license law.