During an IREC disciplinary hearing, broker Ellen argues that the IREC's administrative rule requiring brokers to retain transaction records for five years is invalid because the underlying statute, Iowa Code Chapter 543B, does not explicitly mention a five-year retention period. The IREC hearing officer must decide whether the rule is valid. Which of the following best describes the legal standard that applies?
Correct Answer
B) The rule is valid if it is reasonably related to and consistent with the purposes and authority granted by Iowa Code Chapter 543B, even if the statute does not specify the exact retention period
Under Iowa administrative law, an agency rule is valid if it falls within the scope of the agency's statutory authority and is reasonably related to the purposes of the enabling statute. Iowa courts apply the principle that agencies may fill in operational details not explicitly stated in the statute, as long as the rules are consistent with legislative intent. The IREC's authority to regulate recordkeeping practices is reasonably implied by its mandate to oversee real estate transactions and protect consumers under Chapter 543B.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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