What is the maximum civil penalty IREC can impose per violation?

\$10,000. IREC can impose civil penalties up to \$10,000 per violation. This is in addition to other disciplinary actions such as license suspension, revocation, or required education.

What rights does an Iowa licensee have before IREC takes disciplinary action?

Due process rights including notice and hearing. Iowa licensees have due process rights before disciplinary action, including the right to notice of charges, a formal hearing, representation by an attorney, presenting evidence and witnesses, and appealing unfavorable decisions to district court.

Which of the following is grounds for discipline under Iowa Code 543B.29?

Failing to account for client funds. Failing to account for funds is specifically listed as grounds for discipline in Iowa Code 543B.29. Other grounds include fraud, misrepresentation, acting for multiple parties without disclosure, and felony conviction.

Where can an Iowa licensee appeal an unfavorable IREC disciplinary decision?

District court. Iowa licensees can appeal unfavorable IREC disciplinary decisions to district court. This is part of the due process rights afforded to licensees under Iowa law.

Key Takeaways

IREC can investigate complaints, conduct hearings, and impose disciplinary actions
Violations can result in license denial, suspension, revocation, or civil penalties up to \$10,000
Common violations include misrepresentation, commingling, unlicensed activity, and failure to disclose
Iowa emphasizes consumer protection with strong enforcement powers
Licensees have due process rights including notice and hearing before disciplinary action

License Law Violations & Discipline

IREC has authority to investigate complaints and take disciplinary action against licensees who violate Iowa Code Chapter 543B and administrative rules.

Common Violations

Misrepresentation and Fraud

Violation	Description
Material misrepresentation	False statements about important facts
Omission	Failing to disclose known material defects
Fraud	Intentional deception for personal gain
False advertising	Misleading marketing or claims

Trust Account Violations

Violation	Description
Commingling	Mixing client and broker funds
Conversion	Using client funds without authorization
Failure to deposit	Not depositing funds promptly
Poor records	Inadequate documentation

Agency and Disclosure Violations

Violation	Description
Agency disclosure failures	Not providing required disclosures
Undisclosed dual agency	Acting for both parties without consent
Breach of fiduciary duty	Violating duties to clients
Undisclosed interest	Failing to disclose personal interest

Unlicensed Activity

Violation	Description
Practicing without license	Performing activities requiring a license
Practicing on expired license	Continuing to work after expiration
Paying unlicensed persons	Compensating unlicensed individuals

Iowa Consumer Protection Focus: Iowa emphasizes consumer protection. Violations affecting consumers are treated seriously.

Disciplinary Process

Investigation

Complaint filed with IREC (or IREC initiates investigation)
Investigation conducted by IREC staff
Evidence gathered (documents, interviews, audits)
Determination made whether to proceed

Hearing Process

If IREC proceeds with disciplinary action:

Step	Description
Notice	Licensee notified of charges
Hearing	Formal hearing before Commission
Evidence	Both sides present evidence
Decision	Commission issues written decision
Appeal	Licensee may appeal to district court

Due Process Rights

Licensees have the right to:

Notice of charges
Hearing before adverse action
Representation by attorney
Present evidence and witnesses
Appeal unfavorable decisions

Disciplinary Actions

IREC may impose various sanctions:

Action	Description
Denial	Refuse to issue license
Suspension	Temporary loss of license
Revocation	Permanent loss of license
Reprimand	Formal warning
Civil penalty	Up to $10,000 per violation
Probation	Conditional license with restrictions
Education	Required additional training

Factors Considered

Factor	Impact
Severity of violation	More serious = harsher penalty
Prior disciplinary history	Repeat violations = stricter
Harm to consumers	Consumer damage = more serious
Cooperation	Cooperation may reduce penalty
Remediation	Steps taken to correct problem

Grounds for Discipline

Iowa Code 543B.29 lists grounds for discipline including:

Obtaining license through fraud or misrepresentation
Violating any provision of Chapter 543B
Making false promises to influence a transaction
Acting for more than one party without disclosure
Failing to account for funds
Conviction of a felony
Demonstrating incompetence or untrustworthiness

Iowa Real Estate Salesperson

1Chapter 1: Iowa Real Estate Commission & Licensing

2Chapter 2: Agency & Disclosure

3Chapter 3: Contracts & Property

4Chapter 4: Trust Accounts & Violations