Getting Everyone to Approve the Listing Agent: Practical Steps for Iowa Property Owners
Disclaimer
This is educational information only and not legal advice. Laws change and every situation is different. Consult a licensed Iowa attorney for legal advice about your specific situation.
Detailed answer — clear steps to secure unanimous approval before marketing
When more than one person or entity has legal control of an Iowa property, you should get clear, written authorization from every person or entity who must approve the selection of the real estate professional before marketing begins. Below is a practical, step-by-step approach you can follow.
1) Identify who legally must approve
Start by establishing every party with legal authority over sale-related decisions. Common decision-makers include:
- All titled owners (joint tenants, tenants in common).
- Trustees when the property sits in a trust.
- Executors or administrators if the property is in probate (you typically need letters testamentary or of administration).
- Officials of an owning entity (corporate officers, LLC managers) who can bind the company under its formation documents or corporate resolutions.
- Holders of a valid power of attorney that specifically grants authority to sell real estate.
2) Verify authority with documents
Don’t rely on oral assurances. Collect and review documentation showing each signer’s authority:
- Deed and title report to confirm named owners and how title is held.
- Trust instrument or trustee certification showing trustee authority.
- Letters testamentary/administration or a certified court order for estate representatives.
- Corporate/LLC formation documents and a board or member resolution approving the signing agent.
- Executed power of attorney that explicitly authorizes real estate transactions — and verify it is current and not revoked.
3) Use a single, clear written listing agreement signed by all required parties
One signed listing agreement avoids later disputes. Practical items to include and check:
- Every owner’s printed name and signature block. If a party signs as agent for another, show the capacity (e.g., “as Trustee” or “as Attorney-in-Fact for Jane Doe”).
- Full legal description of the property and street address.
- Term of the listing, commission structure, and any special sale terms.
- Confirm that all signers received a copy of the fully executed agreement.
4) Require identity and signatory verification at signing
At the signing appointment:
- Ask for government ID and a copy for your file.
- For entities or trustees, obtain printed names, titles, and proof of authority (resolution, trust certification, letters, etc.).
- If any signer uses a power of attorney, record the POA language in your file and verify it grants real estate sale authority.
5) Record and share proof of unanimous approval
Create a file that documents everyone’s approval. Common items:
- Fully executed listing agreement scanned and circulated to all parties.
- Copies of the verifying documents (deed, trust certification, corporate resolution, POA, letters testamentary).
- A short written confirmation (email or signed memo) from each owner consenting to marketing and the chosen agent.
6) Address special circumstances
Some scenarios require extra steps:
- If an owner is incapacitated, check whether a guardian or conservator has court authority to sign.
- If title is in a trust, the trustee generally signs; ask for a trustee certification to avoid exposing trust language.
- If the property is in probate, obtain court authorization or letters showing the personal representative’s authority to sell.
- If an entity owns the property, get a corporate/LLC resolution authorizing the specific person to sign the listing agreement.
7) Handle disagreements before marketing
If owners disagree about the choice of realtor or marketing approach, do not begin marketing until you resolve the dispute. Options include:
- Negotiation or mediation among owners.
- Voting under the entity’s operating agreement or bylaws (for corporations/LLCs).
- Court intervention when owners are deadlocked or authority is contested.
8) Be mindful of related Iowa requirements
Iowa regulates broker licensing and seller disclosures. Confirm that the chosen broker is licensed and that you complete any required seller property disclosures before or at contract time. See the Iowa Division of Real Estate and relevant Iowa Code chapters for more on licensing and disclosure rules:
- Iowa Division of Real Estate and Abstract — licensing and complaint information: https://plb.iowa.gov/divisions/real-estate-and-abstract
- Iowa real estate licensing statutes (see Iowa Code chapter for brokers and salespersons): https://www.legis.iowa.gov/docs/code/543B.pdf
- Iowa seller property disclosure statutes (see Iowa Code chapter on property condition disclosure): https://www.legis.iowa.gov/docs/code/558A.pdf
9) When to involve an attorney
Consult an Iowa real estate attorney if:
- Ownership or signing authority is unclear or disputed.
- An owner is incapacitated and the scope of a guardian’s or agent’s authority is uncertain.
- Co-owners are deadlocked or you expect litigation.
- The property is in probate or involves complex trust or entity issues.
Helpful Hints
- Collect documents early: getting deeds, trust excerpts, and POAs up front saves time and avoids marketing delays.
- Use a standardized checklist for signers and documents so nothing gets missed at signing.
- Ask the listing broker to provide a form of the listing agreement in advance so all owners can review before signing.
- If an owner cannot attend, consider a notarized power of attorney that specifically authorizes signing the listing agreement and selling real estate.
- Keep email confirmations and dated communications in your file to show all parties had notice of the agent selection and marketing plan.
- Confirm broker licensing and any disciplinary history with the Iowa Division of Real Estate before finalizing the choice: https://plb.iowa.gov/divisions/real-estate-and-abstract.
- When in doubt, pause marketing until you have written, verifiable authority from everyone required—starting marketing too early can expose you to legal disputes and claims for unauthorized listings.