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Text: SSB00171                          Text: SSB00173
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Senate Study Bill 172

Bill Text

PAG LIN
  1  1    Section 1.  Section 558A.1, subsection 4, Code 1997, is
  1  2 amended to read as follows:
  1  3    4.  "Transfer" means the transfer or conveyance by sale,
  1  4 exchange, real estate contract, or any other method by which
  1  5 real estate and improvements are purchased, if the property
  1  6 includes at least one but not more than four dwelling units.
  1  7 However, a transfer does not include any of the following:
  1  8    a.  A transfer made pursuant to a court order, including
  1  9 but not limited to a transfer under chapter 633, the execution
  1 10 of a judgment, the foreclosure of a real estate mortgage
  1 11 pursuant to chapter 654, the forfeiture of a real estate
  1 12 contract under chapter 656, a transfer by a trustee in
  1 13 bankruptcy, a transfer by eminent domain, or a transfer
  1 14 resulting from a decree for specific performance, or a
  1 15 transfer pursuant to writ of execution.
  1 16    b.  A transfer to a mortgagee by a mortgagor or successor
  1 17 in interest who is in default, or a transfer by a mortgagee
  1 18 who has acquired real property at a sale conducted pursuant to
  1 19 chapter 654, a transfer back to a mortgagor exercising a right
  1 20 of first refusal pursuant to section 654.16A, a nonjudicial
  1 21 voluntary foreclosure procedure under section 654.18 or
  1 22 chapter 655A, or a deed in lieu of foreclosure under section
  1 23 654.19.
  1 24    c.  A transfer by a fiduciary in the course of the
  1 25 administration of a decedent's estate, guardianship,
  1 26 conservatorship, or trust, or power of attorney.
  1 27    d.  A transfer between joint tenants or tenants in common.
  1 28    e.  A transfer made to a spouse, or to a person in the
  1 29 lineal line of consanguinity of a person making the transfer.
  1 30    f.  A transfer between spouses resulting from a decree of
  1 31 dissolution of marriage, a decree of legal separation, or a
  1 32 property settlement agreement which is incidental to the
  1 33 decree, including a decree ordered pursuant to chapter 598.
  1 34    g.  A transfer to or from the state, a political
  1 35 subdivision of the state, another state, or the United States.
  2  1    h.  A transfer by quitclaim deed.
  2  2    i.  A transfer of newly constructed residential real
  2  3 property which has never been occupied.
  2  4    Sec. 2.  NEW SECTION.  558A.4A  PSYCHOLOGICALLY IMPACTED
  2  5 REAL ESTATE – DISCLOSURE NOT MANDATED.
  2  6    1.  The fact that real estate, or any building or structure
  2  7 on such real estate, may be, or is suspected to be,
  2  8 psychologically impacted real estate, or may be in close
  2  9 proximity to psychologically impacted real estate, is not a
  2 10 material adverse fact that is required to be disclosed in a
  2 11 sale, exchange, rental, or other transfer of such real estate.
  2 12    2.  a.  For purposes of this section, "psychologically
  2 13 impacted real estate" means real estate where an event has
  2 14 occurred including, but not limited to, any of the following:
  2 15    (1)  The death of an individual.
  2 16    (2)  A forcible felony as defined in section 702.11, or any
  2 17 other felony.
  2 18    (3)  A suicide.
  2 19    (4)  A newsworthy event which impacts the property as a
  2 20 result of the notoriety of the event.
  2 21    (5)  An occupant of the real estate was infected with the
  2 22 human immunodeficiency virus, or diagnosed with acquired
  2 23 immune deficiency syndrome, or with some other disease which,
  2 24 as determined by medical evidence, would be highly unlikely to
  2 25 be transmitted as a result of occupying such real estate.
  2 26    b.  "Psychologically impacted real estate" also includes
  2 27 real estate which is allegedly haunted.
  2 28    3.  A cause of action shall not arise against a real estate
  2 29 broker or salesperson for the failure to disclose to a buyer
  2 30 or other transferee of real estate that the transferred real
  2 31 estate is or might be psychologically impacted real estate.
  2 32 This section shall not be construed to authorize or permit
  2 33 such broker or salesperson to make any misrepresentation of
  2 34 fact or false statement, or to fail to disclose a material
  2 35 adverse fact.  
  3  1                           EXPLANATION
  3  2    This bill creates new Code section 558A.4A, which
  3  3 establishes a definition for psychologically impacted real
  3  4 estate.  The bill provides that the fact that real estate, or
  3  5 any building or structure on such real estate, may be, or is
  3  6 suspected to be psychologically impacted real estate, or may
  3  7 be sited close to psychologically impacted real estate, is not
  3  8 a material adverse fact that is required to be disclosed in a
  3  9 sale, exchange, rental, or other transfer of such real estate.
  3 10    Psychologically impacted real estate is defined as real
  3 11 estate where an event has occurred or is alleged to have
  3 12 occurred including, but not limited to, the following:  an
  3 13 individual has died; a forcible felony as defined in Code
  3 14 section 702.11, or any other felony, has occurred; a suicide
  3 15 has occurred; a newsworthy event has occurred which impacts
  3 16 the property as a result of the notoriety of the event; or an
  3 17 occupant of the real estate was infected with the human
  3 18 immunodeficiency virus, or diagnosed with acquired immune
  3 19 deficiency syndrome, or with some other disease which, as
  3 20 determined by medical evidence, would be highly unlikely to be
  3 21 transmitted as a result of occupying such real estate.  The
  3 22 bill provides that psychologically impacted real estate also
  3 23 includes real estate which is allegedly haunted or rumored to
  3 24 be haunted.
  3 25    The bill also provides that a cause of action does not
  3 26 arise against a real estate broker or salesperson for the
  3 27 failure to disclose to a buyer or other transferee of real
  3 28 estate that the transferred real estate is or might be
  3 29 psychologically impacted real estate.
  3 30    The bill also amends the definition of "transfer" for
  3 31 purposes of disclosure requirements under Code chapter 558A,
  3 32 to exclude a transfer pursuant to a writ of execution, a
  3 33 transfer by a fiduciary in administering a decedent's power of
  3 34 attorney, and a transfer of newly constructed residential real
  3 35 property which has never been occupied.  
  4  1 LSB 1855SC 77
  4  2 mj/jw/5
     

Text: SSB00171                          Text: SSB00173
Text: SSB00100 - SSB00199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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