Iowa Real Estate License Law, Rules, and Commission Regulation
Licensing framework
Iowa licenses real estate activity under Iowa Code chapter 543B, administered by the Iowa Real Estate Commission through the state's professional licensing bureau. License categories are brokerage (company), broker, and salesperson; a salesperson may only act while sponsored by a licensed broker. Prelicense education, examination, and a background check are required, and licenses renew on a multi-year cycle with continuing education (currently 36 hours per three-year cycle) and mandatory topic hours set by Commission rule.
Regulated conduct
- Trust accounts: earnest money and client funds go into the broker's trust account; no commingling with operating funds; records kept for the period required by rule.
- Advertising must include the brokerage's licensed name; team names and personal names cannot substitute for the brokerage identity.
- Unlicensed assistants may do clerical work and give out factual information on listed properties, but may not show property to prospective buyers, discuss terms, or negotiate.
- Referral fees may not be paid to unlicensed persons.
- A licensee selling or buying her own property must disclose licensed status in writing.
Discipline and traps
Common violations: commingling, failing to account, misrepresentation, undisclosed dual agency, unlicensed activity, and failure to supervise. Sanctions range from reprimand and education to suspension, revocation, and civil penalties. Exam traps include thinking a license is issued to a team, that a salesperson can broker independently, or that the Commission must approve contract forms - it does not.
Worked example: An unlicensed assistant holds an open house, quotes the asking price and terms, and suggests an offer amount. That crosses from clerical/factual into brokerage activity and exposes both assistant and supervising broker to discipline.