Key Takeaways
- The Iowa Real Estate Commission (IREC) operates under the Professional Licensing Bureau of the Iowa Department of Inspections, Appeals, and Licensing
- IREC consists of five members appointed by the Governor: three licensed brokers and two public members
- IREC has authority to investigate complaints, conduct audits, and take disciplinary action including license suspension or revocation
- Iowa real estate licensing is governed by Iowa Code Chapter 543B and administrative rules in Chapter 193E
- Iowa requires 96 hours of pre-license education: 60-hour online course + 36 hours of mandatory live instruction
Iowa Real Estate Commission (IREC)
The Iowa Real Estate Commission (IREC) is the state agency responsible for licensing, regulating, and overseeing real estate professionals in Iowa under Iowa Code Chapter 543B.
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IREC Structure and Authority
Commission Members
IREC consists of five members appointed by the Governor:
| Member Type | Number | Requirements |
|---|---|---|
| Licensed brokers | 3 | Active Iowa broker license |
| Public members | 2 | Not licensed in real estate |
Members serve three-year staggered terms with no member serving more than three consecutive terms.
Key IREC Functions
| Function | Description |
|---|---|
| Licensing | Process applications, approve education providers, issue licenses |
| Education | Set education requirements, approve courses and schools |
| Enforcement | Investigate complaints, conduct audits of trust accounts |
| Discipline | Suspend, revoke, or deny licenses; impose civil penalties |
| Rulemaking | Adopt administrative rules to implement Iowa Code Chapter 543B |
Iowa Real Estate Law
The Iowa Code Chapter 543B is the primary statute governing real estate licensing in Iowa. Key provisions include:
- Who must be licensed - Definitions of broker and salesperson activities
- Exemptions - Attorneys, property owners, certain employees
- Prohibited conduct - Actions that violate the law
- Disciplinary actions - Grounds for suspension or revocation
- Trust fund handling - Requirements for client funds
Administrative Rules (Chapter 193E)
IREC adopts administrative rules that implement the License Law. These rules cover:
- License application procedures
- Education requirements and course approval
- Advertising standards
- Trust account requirements
- Agency disclosure procedures
Exam Tip: Iowa emphasizes consumer protection. The Commission has strong enforcement powers and can impose civil penalties up to $10,000 per violation.
Iowa Real Estate Recovery Fund
The Iowa Real Estate Education Fund supports education and enforcement activities. Unlike some states, Iowa does not have a traditional recovery fund for consumer claims.
Consumer Protection in Iowa
Iowa provides consumer protection through:
| Mechanism | Description |
|---|---|
| Civil penalties | Up to $10,000 per violation |
| License action | Suspension or revocation |
| Court action | Consumers can pursue civil remedies |
| Bond requirement | Brokers must maintain errors & omissions insurance |
Errors & Omissions Insurance
Iowa requires licensees to maintain errors and omissions (E&O) insurance:
| Requirement | Details |
|---|---|
| Who must have | All active licensees |
| Minimum coverage | As specified by IREC |
| Purpose | Protect consumers from licensee negligence |
| Verification | Must show proof at renewal |
Key Point: E&O insurance protects both consumers and licensees from professional liability claims.
IREC Contact Information
| Resource | Information |
|---|---|
| Website | plb.iowa.gov |
| Main Office | Des Moines, Iowa |
| Phone | (515) 725-9022 |
| Online System | Iowa PLB online licensing portal |
How many members serve on the Iowa Real Estate Commission?
Which Iowa Code chapter governs real estate licensing?