Iowa Antitrust Compliance and Compensation Disclosure Post-NAR

Before you start — 7 things to know

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  Before you tour homes with a buyer's agent in Iowa, you sign a buyer representation agreement that states the dollar amount or percentage the agent will seek as compensation. This is required after the NAR settlement took effect on August 17, 2024.

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  Your buyer's agent has to tell you the source of their pay — whether it is coming from the seller through a concession, from you directly out of pocket, or a combination of both.

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  Iowa agents must set their commission rates independently. If an agent tells you their rate is fixed because 'everyone charges this,' that is a red flag — rates are negotiable and the agent should be able to explain their own pricing.

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  If your agent ends up receiving more compensation than what your buyer representation agreement listed — for example, the seller offers a bigger concession — the excess must be disclosed to you and handled per the terms you signed.

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  Buyer-agent compensation is no longer published on the MLS in Iowa, so you cannot assume the seller will cover your agent's fee. You may need to negotiate that concession as part of your offer.

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  You can negotiate your buyer's agent's rate. Iowa law treats compensation as an open business term, and the agreement you sign is the binding statement of what you owe.

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  Keep a copy of your buyer representation agreement and the closing disclosure. Together they show what you agreed to pay and what your agent actually received, which is your record if a dispute comes up later.

The timeline — step by step

1. 1

   Step 1: Before any home tour, sit down with the buyer's agent and review the buyer representation agreement, which spells out the compensation amount you authorize them to seek.

2. 2

   Step 2: Ask the agent to explain the source of their pay in plain terms — seller concession, direct buyer payment, or a mix — and have them write that into the agreement.

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   Step 3: Negotiate the rate if you want to. Iowa agents set their own rates independently under NAR settlement rules, so 'standard' is not a binding answer.

4. 4

   Step 4: When you make an offer on a home, decide with your agent whether to ask the seller for a concession that covers part or all of the buyer-agent compensation.

5. 5

   Step 5: At closing, review the closing disclosure to confirm the compensation paid to your agent matches the amount in your buyer representation agreement.

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   Step 6: If your agent received more than the agreed amount, ask for the written disclosure of the excess and how it is being handled, as Iowa rules require.

Common questions