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SF 314

A bill for an act relating to the license application form for real estate brokers and salespersons, and brokerage agreement requirements.

2025-2026 Regular Session

SF 314 lets Iowa real estate license applicants who switch between broker and salesperson choose when the new license becomes effective, smoothing transitions.

Signed by Governor.
#forms #professionallicensure #professions #realestatebrokerage #realproperty
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Bill Summary · SF 314

Summary — SF 314 (Signed May 19, 2025)

Title: An act relating to the license application form for real estate brokers and salespersons, and brokerage agreement requirements.
Bill No.: SF 314 — Approved by Governor Kim Reynolds on May 19, 2025.

Purpose

SF 314 makes two targeted changes to Iowa real estate law: (1) it requires the Iowa Real Estate Commission’s license application form to allow applicants switching between broker and salesperson licenses to choose when the new license becomes effective; and (2) it clarifies when a written brokerage agreement must be signed and creates specific exceptions to the buyer-related signature requirement.

Key provisions

  1. Amendment to Iowa Code § 543B.16 (new subsection 4)

    • The application form prepared or furnished by the Real Estate Commission must allow a person who holds a broker license and is applying for a salesperson license (or vice versa) to indicate whether the newly applied-for license should:
      • become effective upon approval of the application, or
      • become effective upon expiration of the applicant’s current license.

  2. Amendment to Iowa Code § 543B.56A(3)

    • Requires a brokerage agreement to be signed by both the broker and the client:
      • before the broker lists 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 behalf of the buyer.
    • Specifies that the buyer-related brokerage agreement requirements do NOT apply to:
      • customers attending an open house or auction,
      • potential buyers of a property of more than four dwelling units, or
      • properties not intended for human inhabitance.

Who is affected

  • Iowa Real Estate Commission: must ensure license application forms include the new effective-date option.
  • Real estate licensees: brokers and salespersons changing license classification will use the new option to control effective timing.
  • Brokers and clients (sellers and buyers): clarified signature timing for brokerage agreements and identified exceptions reducing when a signed buyer agreement is required.
  • Buyers at open houses/auctions, purchasers of properties with >4 dwelling units, and buyers of non-inhabitable property: are exempt from the buyer-specific signature requirement.

Procedural/timeline notes

  • Introduced: Feb 13, 2025.
  • Passed Senate and House (unanimous votes recorded in March–May 2025).
  • Signed into law: May 19, 2025 (became effective as enacted on that date).

Practical impact

  • Provides administrative flexibility for license transitions (avoid overlap or lapse by choosing start date).
  • Clarifies broker-client obligations and reduces paperwork in common situations (open houses, auctions, large multi‑unit properties, and non‑residential/non‑habitable transactions).

Compiled from official sources — confirm details with the bill’s official record.

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