View amendments Adoped and Filed Emergency ARC 2456B

View Replacement Sheet in PDF format

Summary of Rule Changes:

Item 1 amends subrule 13.1(2) to clarify that the client is free to request that interest on the client’s funds be paid to a third party. Items 2 and 3 clarify that the parties to the transaction do have control of the interest.
Under the terms of the program, lawyers and nonlawyers who were authorized to conduct certain real estate closings were required to place a client’s funds in pooled interest-bearing trust accounts if the funds could not earn net interest for the client. Interest earned in the IOLTA program served a variety of public purposes.

R03-02

On July 17, 2003, the Commission voted to terminate this rule making. View the Notice of Termination

View terminated amendments filed Notice of Intended Action ARC 2429B
(See ARC 2456B This is the same as R03-01 above filed emergency and in effect).

Summary:

No one appeared at the public hearing held on May 20, 2003, in the Second Floor Professional Licensing Conference Room, 1920 SE Hulsizer, Ankeny, Iowa, and no written comments were received.However, after the May 20, 2003 cut-off date, the Commission received a complaint forwarded by the Consumer Protection Division of the Iowa Attorney General. After review of the complaint, there were questions as to the legality of a private real estate licensee organization receiving interest from the trust account, related tax issues for buyers and sellers, and very serious disclosure issues.
The Commission is terminating the rule making commenced in ARC# 2429B to provide additional time to study the issues raised, to see if other complaints are received, and incorporate appropriate changes and clarifications as necessary before re-noticing the proposed amendments.