Iowa Administrative Code › Agency 193E - Real Estate Commission › Chapter 7 - Offices and Management › Rule 193E-7.4 - Barred Practices

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of this rule, only the term "real estate licensee"
				means "real estate broker or real estate salesperson" as defined in Iowa Code
				chapter 543B. A licensee participating in any of the practices described in
				this rule is deemed to be engaging in unethical conduct and a practice harmful
				or detrimental to the public within the meaning of Iowa Code section
				543B.29(1).
(1) An arrangement in
			 which a real estate licensee needs or conditions, in connection with the sale
			 of a lot, that the real estate licensee receive from the homebuilder an
			 exclusive right to sell or list the house to be constructed on the
			 lot.
(2) An arrangement in which a
			 real estate licensee agrees to sell lots on behalf of a developer on the
			 condition that the developer obligates each homebuilder purchasing such a lot
			 to list the house to be constructed with the real estate licensee.
(3) An arrangement in which a real estate
			 licensee, in connection with the sale of a lot to a consumer or homebuilder,
			 obligates the consumer or homebuilder to pay a commission on the value of the
			 house to be constructed on the lot.
(4) Any arrangement pursuant to which the
			 sale of real estate to a prospective purchaser is conditioned upon the listing
			 of real estate owned by the prospective purchaser with the real estate
			 licensee.
(5) An arrangement in
			 which a real estate licensee, in connection with the sale of a lot to a
			 consumer, obligates the consumer to use a specified home builder to build the
			 house to be constructed on the lot.
(6) Any arrangement in which a real estate
			 licensee enters into an agreement with a mortgage broker, bank, savings and
			 loan, or other financial institution pursuant to which the making of a loan is
			 directly or indirectly conditioned upon payment of a real estate commission to
			 the real estate licensee.
(7) Any
			 arrangement pursuant to which a real estate licensee who is affiliated with a
			 mortgage broker, bank, savings and loan association or other financial
			 institution benefits from the practice by the affiliated financial institution
			 of granting mortgage loans or any other loan or financial services or the
			 availability of other benefits directly or indirectly conditioned upon the use
			 of the real estate services of the affiliated licensee.
(8) Any arrangement barred by Iowa Code
			 section 543B.60A.
This rule is intended only to regulate the licensing of real
				estate licensees in the state of Iowa. This rule is not intended nor should it
				be interpreted to supplant Iowa Code chapter 553 (Iowa Competition Law) or as
				authorizing or approving business practices which are not specifically barred
				in this rule. The commission, upon receipt of any formal written complaint
				filed against a licensee alleging a violation of this rule, in addition to
				evaluating such complaint for license revocation or suspension under Iowa Code
				chapter 543B, forwards a copy of such complaint to the attorney general of the
				state of Iowa and to the United States Attorney for investigation and
				appropriate action.