Senate
File
2253
-
Introduced
SENATE
FILE
2253
BY
COMMITTEE
ON
COMMERCE
(SUCCESSOR
TO
SSB
3148)
A
BILL
FOR
An
Act
relating
to
certain
disclosure
requirements
for
1
the
transfer
of
real
estate
involving
limited
liability
2
companies.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5972SV
(1)
86
gh/sc
S.F.
2253
Section
1.
Section
489.407A,
Code
2016,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
4.
a.
A
transfer
of
an
interest
in
3
real
estate
involving
a
limited
liability
company
or
foreign
4
limited
liability
company
as
transferor
or
transferee,
which
5
transfer
is
exempt
from
payment
of
a
real
estate
transfer
tax
6
under
section
428A.2,
shall
include
a
market
value
disclosure
7
statement
prepared
by
the
transferor.
The
market
value
8
disclosure
statement
shall
reflect
the
actual
or
fair
market
9
value
of
the
real
estate
transferred,
as
determined
by
an
10
independent
professional
appraiser
without
regard
to
the
amount
11
of
the
sale
price
or
consideration
stated
on
the
instrument
of
12
transfer.
13
b.
The
market
value
disclosure
statement
shall
be
included
14
with
the
instrument
of
transfer
and
filed
with
the
recorder
of
15
the
county
where
the
real
estate
is
situated.
For
purposes
16
of
this
subsection,
“instrument
of
transfer”
means
the
deed,
17
real
estate
contract,
lease,
easement,
mortgage,
deed
of
trust,
18
or
any
other
instrument
used
to
effect
the
transfer
of
any
19
interest
in
real
estate.
20
c.
The
value
disclosed
on
a
market
value
disclosure
21
statement
required
in
this
subsection
shall
not
be
used
to
22
determine
real
estate
transfer
tax
liability
under
chapter
23
428A.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
real
estate
transfers
involving
limited
28
liability
companies.
29
The
bill
requires
a
transfer
of
real
estate
involving
a
30
limited
liability
company
or
foreign
limited
liability
company
31
as
transferor
or
transferee
which
is
exempt
from
real
estate
32
transfer
tax
to
disclose
the
market
value
of
the
real
estate
33
being
transferred
in
a
market
value
disclosure
statement
34
prepared
by
the
transferor.
The
statement
shall
reflect
the
35
-1-
LSB
5972SV
(1)
86
gh/sc
1/
2
S.F.
2253
actual
or
fair
market
value
of
the
real
estate,
as
determined
1
by
an
independent
professional
appraiser.
The
market
value
2
disclosure
statement
is
to
be
included
with
the
instrument
of
3
transfer,
as
defined
in
the
bill,
and
filed
with
the
county
4
recorder
where
the
real
estate
is
located.
The
value
disclosed
5
on
the
disclosure
statement
shall
not
be
used
to
determine
real
6
estate
transfer
tax
liability
under
Code
chapter
428A.
7
-2-
LSB
5972SV
(1)
86
gh/sc
2/
2