Guides / Buyer-Agent Agreements / Iowa

Buyer-Agent Agreements in Iowa

Yes — Iowa is one of the small number of states that codified its own buyer-representation-agreement statute rather than relying solely on the national NAR settlement/MLS participation rule (unlike, e.g., New York). Iowa's law, Iowa Code §543B.56A, was enacted as part of the "Iowa Real Estate Transparency Act" (SF 2291, 2024 Iowa Acts ch. 1052), signed by Governor Kim Reynolds and effective July 1, 2024 — actually predating the August 17, 2024 national NAR settlement practice changes. A companion bill, HF 2326 (2024 Iowa Acts ch. 1072, effective April 19, 2024), made related amendments (chiefly property-management licensing exemptions) to the same Code chapter. The statute was amended again in 2025 (2025 Iowa Acts ch. 83, §2), and the version above reflects the current 2026 Iowa Code text. It is enforced by the Iowa Real Estate Commission (part of the Department of Inspections, Appeals, and Licensing), with civil penalties up to $2,500 for licensee non-compliance.

Iowa Code §543B.56A ("Brokerage agreements — purpose — contents"), enacted via the Iowa Real Estate Transparency Act, Senate File 2291 (2024 Iowa Acts, ch. 1052), with related amendments from House File 2326 (2024 Iowa Acts, ch. 1072) and further amendment in 2025 Iowa Acts, ch. 83, §2 — effective July 1, 2024 (original enactment); subsection 3 was subsequently amended by 2025 Iowa Acts, ch. 83, §2

Requirements

A brokerage agreement must be signed by both the broker and the client BEFORE the broker lists a property for a seller, OR before showing a property to a buyer, OR — if no property is shown — before making an offer on a property on the buyer's behalf.
Exemptions: the buyer-side signing requirement does NOT apply to customers merely attending an open house or auction, to a prospective buyer of a property with more than four dwelling units, or to property not intended for human habitation.
The agreement must specify the broker's duties at minimum: accepting/presenting offers and counteroffers, assisting in negotiating through closing, answering client questions about the agreements/offers/contingencies, and providing buyers access to listed properties.
The agreement must review the broker's compensation and conspicuously display a statement that the broker's compensation, fees, and commission are negotiable and not set by law (i.e., mandatory negotiability disclosure).
Compensation terms must be documented in writing in the brokerage agreement (consistent with statutory intent that compensation be objectively ascertainable, not open-ended).
Enforcement is via the Iowa Real Estate Commission (within Iowa DIAL), with civil penalties of up to $2,500 per violation for licensees who fail to comply (e.g., showing a property without a signed buyer agreement first).

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

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