Can I wholesale in Iowa without a realtor license?

Question

Hi there,

I want to wholesale in the state of Iowa. My question is: is it possible to wholesale/assign a contract in the state of Iowa without a realtor license?

Thank you,

Hailey

Grace Griffin · Answer

The key is to close on the deal yourself, and then resell. That is how you are completely protected. That being said, I know many who have assigned contracts. Lawyers wouldn't do it if it were illegal. It's a grey area.

AJ Leman · Answer

Good info above, but I’ve wholesaled deals in Iowa without a realtor license. I know lots of folks who have done it as well.

Charlie MacPherson · Answer

@Hailey Padgett  Short answer: No.  At least not legally.

Long answer, read the law for yourself from: https://plb.iowa.gov/real-esta...

543B.3 Broker — definition.As used in this chapter, “real estate broker” means a person acting for another for a fee,commission, or other compensation or promise, whether it be for all or part of a person’stime, and who engages directly or indirectly in any of the following acts:1. Sells, exchanges, purchases, rents, or leases real estate.2. Lists, offers, attempts, or agrees to list real estate for sale, exchange, purchase, rent, orlease.3. Advertises or holds oneself out as being engaged in the business of selling, exchanging,purchasing, renting, leasing, or managing real estate.4. Negotiates, or offers, attempts, or agrees to negotiate, the sale, exchange, purchase,rental, or lease of real estate.5. Buys, sells, offers to buy or sell, or otherwise deals in options on real estate orimprovements on real estate.6. Collects, or offers, attempts, or agrees to collect, rent for the use of real estate.7. Assists or directs in the procuring of prospects, intended to result in the sale, exchange,purchase, rental, or leasing of real estate.8. Assists or directs in the negotiation of any transaction intended to result in the sale,exchange, purchase, rental, or leasing of real estate.9. Prepares offers to purchase or purchase agreements, listing contracts, agencydisclosures, real property residential and agricultural rental agreements, real propertycommercial rental agreements of one year or less, and groundwater hazard statements,including any modifications, amendments, or addendums to these specific documents.[C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §117.3]C93, §543B.395 Acts, ch 170, §2; 2002 Acts, ch 1031, §1Referred to in §543B.5, 543B.6, 543B.7, 543B.43Tue Nov 24 19:08:08 2020 Iowa Code 2021, Chapter 543B (25, 0)3 REAL ESTATE BROKERS AND SALESPERSONS, §543B.5543B.4 Real estate — definition.As used in this chapter, “real estate” means real property wherever situated, and includesany and all leaseholds or any other interest or estate in land, and business opportunities whichinvolve any interest in real property.

Then there's this: 543B.6 Acts constituting dealing in real estate.A person who, for another, in consideration of compensation, by fee, commission, salary,or otherwise, or with the intention or in the expectation or upon the promise of receiving orcollecting a fee, does, offers or attempts or agrees to do, engages in or offers or attempts oragrees to engage in, either directly or indirectly, any single act or transaction contained in thedefinition of a real estate broker as set out in section 543B.3, whether the act be an incidentalpart of a transaction or the entire transaction is a real estate broker or real estate salespersonwithin the meaning of this chapter.

From page 15, 3. If an investigation pursuant to this section reveals that an unlicensed person hasassumed to act in the capacity of a real estate broker or real estate salesperson, thecommission shall issue a cease and desist order, and shall impose a civil penalty of up to thegreater of ten thousand dollars or ten percent of the real estate sale price.

PS - this took me 30 seconds with a Google search.

PPS - this is nearly identical to most, if not all, other states.  To market a property that you don't already own is a license-required activity.  Real estate agents are heavily regulated in order to protect the public from unscrupulous operators, like wholesalers.

Maybe concentrate of fix & flip?  Add value instead of stealing it.  Or get your real estate license.

Can I wholesale in Iowa without a realtor license?

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