Text: HF02564 Text: HF02566 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 HOUSE FILE 2565
1 2
1 3 AN ACT
1 4 REQUIRING CONTRACT DISCLOSURE STATEMENTS FOR CERTAIN
1 5 RESIDENTIAL REAL ESTATE INSTALLMENT CONTRACTS, PROVIDING
1 6 FOR A PENALTY, AND PROVIDING AN APPLICABILITY DATE.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. NEW SECTION. 558.70 CONTRACT DISCLOSURE
1 11 STATEMENT REQUIRED FOR CERTAIN RESIDENTIAL REAL ESTATE
1 12 INSTALLMENT SALES.
1 13 1. Prior to executing a residential real estate
1 14 installment sales contract, the contract seller shall deliver
1 15 a written contract disclosure statement to the contract
1 16 purchaser which shall clearly set forth the following
1 17 information:
1 18 a. If the real estate subject to the contract has been
1 19 separately assessed for property tax purposes, the current
1 20 assessed value of the real estate.
1 21 b. (1) A complete description of any property taxes due
1 22 and payable on the real estate and a complete description of
1 23 any special assessment on the real estate and the term of the
1 24 assessment.
1 25 (2) Information on whether any property taxes or special
1 26 assessments are delinquent and whether any tax sale
1 27 certificates have been issued for delinquent property taxes or
1 28 special assessments on the real estate.
1 29 c. A complete description of any mortgages or other liens
1 30 encumbering or secured by the real estate, including the
1 31 identity and address of the current owner of record with
1 32 respect to each such mortgage or lien, as well as a
1 33 description of the total outstanding balance and due date
1 34 under any such mortgage or lien.
1 35 d. A complete amortization schedule for all payments to be
2 1 made pursuant to the contract, which amortization schedule
2 2 shall include information on the portion of each payment to be
2 3 applied to principal and the portion to be applied to
2 4 interest.
2 5 e. If the contract requires a balloon payment, a complete
2 6 description of the balloon payment, including the date the
2 7 payment is due, the amount of the balloon payment, and other
2 8 terms related to the balloon payment. For purposes of this
2 9 paragraph, a "balloon payment" is any scheduled payment that
2 10 is more than twice as large as the average of earlier
2 11 scheduled payments.
2 12 f. The annual rate of interest to be charged under the
2 13 contract.
2 14 g. A statement that the purchaser has a right to seek
2 15 independent legal counsel concerning the contract and any
2 16 matters pertaining to the contract.
2 17 h. A statement that the purchaser has a right to receive a
2 18 true and complete copy of the contract after it has been
2 19 executed by all parties to the contract.
2 20 i. The mailing address of each party to the contract.
2 21 j. If the contract is subject to forfeiture, a statement
2 22 that if the purchaser does not comply with the terms of the
2 23 contract, the purchaser may lose all rights in the real estate
2 24 and all sums paid under the contract.
2 25 2. The contract disclosure statement shall be dated and
2 26 signed by each party to the contract, and the contract
2 27 purchaser shall be provided a complete copy of the contract at
2 28 the time the disclosure statement is delivered to the contract
2 29 purchaser pursuant to subsection 1.
2 30 3. Within five days after a residential real estate
2 31 installment sales contract has been executed by all parties to
2 32 the contract, the contract seller shall mail a true and
2 33 correct copy of the contract by regular first class mail to
2 34 the last known address of each contract purchaser. However,
2 35 this requirement is satisfied as to any purchaser who
3 1 acknowledges in writing that the purchaser has received a true
3 2 and correct copy of the fully executed contract.
3 3 4. This section applies to a contract seller who entered
3 4 into four or more residential real estate contracts in the
3 5 three hundred sixty-five days previous to the contract seller
3 6 signing the contract disclosure statement. For purposes of
3 7 this subsection, two or more entities sharing a common owner
3 8 or manager are considered a single contract seller. This
3 9 section does not apply to an organization listed in section
3 10 535B.2, subsections 1 through 12.
3 11 5. A violation of this section affects title to property
3 12 only as provided in section 558.71.
3 13 6. For purposes of this section, "residential real estate"
3 14 means a residential dwelling containing no more than two
3 15 single-family dwelling units, which is not located on a tract
3 16 of land used for agricultural purposes as defined in section
3 17 535.13.
3 18 7. This section and any rules adopted to administer this
3 19 section shall not limit or abridge any duty, requirement,
3 20 obligation, or liability for disclosure created by any other
3 21 provision of law, or under a contract between the parties.
3 22 Sec. 2. NEW SECTION. 558.71 CIVIL LIABILITIES.
3 23 1. A contract purchaser injured by a violation of section
3 24 558.70 may within one year of the execution of the contract
3 25 bring an equitable action in the district court of record
3 26 where the real estate is located to obtain relief as follows:
3 27 a. The court may rescind a contract that remains in
3 28 existence at the time the action is commenced, and award
3 29 restitution to the contract purchaser determined in accordance
3 30 with the standards for damages specified in paragraph "b".
3 31 b. If the contract has been terminated by any means prior
3 32 to commencement of the action, the contract purchaser may
3 33 recover a money judgment against the original contract seller
3 34 for a sum equal to all amounts the contract purchaser paid to
3 35 the contract seller, plus the reasonable value of any
4 1 improvements to the real estate made by the contract
4 2 purchaser, plus any other proximately caused or incidental
4 3 damages, less the fair rental value of the real estate for the
4 4 period of time the contract purchaser was in possession of the
4 5 real estate. For the purposes of this paragraph, the fair
4 6 rental value of the real estate shall be based on the fair
4 7 rental value of the real estate as of the date the real estate
4 8 installment sales contract was executed by all parties to the
4 9 contract.
4 10 2. A contract purchaser alleging a violation of section
4 11 558.70 bears the burden of establishing such violation by a
4 12 preponderance of the evidence.
4 13 3. An order of recision or a money judgment awarded shall
4 14 not affect any rights or responsibilities arising from any
4 15 conveyance or encumbrance made by either the contract
4 16 purchaser or the contract seller prior to the filing of a lis
4 17 pendens in the action in which such relief is sought, unless
4 18 it is established by clear and convincing evidence that the
4 19 recipient of such conveyance or encumbrance had prior
4 20 knowledge that the contract was executed in violation of the
4 21 requirements of section 558.70.
4 22 4. In an action in which a contract purchaser obtains
4 23 relief under this section, the court shall also award to such
4 24 contract purchaser reasonable attorney fees incurred in
4 25 bringing the action.
4 26 Sec. 3. Section 558.46, Code 2001, is amended by adding
4 27 the following new subsection:
4 28 NEW SUBSECTION. 7. If a contract seller is subject to the
4 29 requirements of section 558.70, the contract must be recorded
4 30 within forty-five days rather than one hundred eighty days and
4 31 the recording requirement is only satisfied by recording the
4 32 real estate contract rather than a memorandum of the contract.
4 33 Sec. 4. Section 558A.4, Code 2001, is amended by adding
4 34 the following new subsection:
4 35 NEW SUBSECTION. 3. A transferor subject to the
5 1 requirements of section 558.70 shall recommend in writing that
5 2 the transferee obtain an independent home inspection report to
5 3 provide full and complete information as required to be
5 4 disclosed under this section and under rules adopted by the
5 5 real estate commission pursuant to section 543B.9.
5 6 A transferor subject to section 558.70 shall provide the
5 7 real estate disclosure statement required by this chapter at
5 8 least seven days before the real estate installment sales
5 9 contract is executed by all parties to the contract.
5 10 Sec. 5. Section 714.8, Code 2001, is amended by adding the
5 11 following new subsection:
5 12 NEW SUBSECTION. 20. A contract seller who intentionally
5 13 provides inaccurate information with regard to any matter
5 14 required to be disclosed under section 558.70, subsection 1,
5 15 or section 558A.4.
5 16 Sec. 6. APPLICABILITY DATE. This Act applies to
5 17 residential real estate installment sales contracts entered
5 18 into on or after the effective date of this Act by contract
5 19 sellers who entered into four or more residential real estate
5 20 installment sales contracts in the three hundred sixty-five
5 21 days previous to a contract entered into on or after the
5 22 effective date of this Act.
5 23
5 24
5 25
5 26 BRENT SIEGRIST
5 27 Speaker of the House
5 28
5 29
5 30
5 31 MARY E. KRAMER
5 32 President of the Senate
5 33
5 34 I hereby certify that this bill originated in the House and
5 35 is known as House File 2565, Seventy-ninth General Assembly.
6 1
6 2
6 3
6 4 MARGARET THOMSON
6 5 Chief Clerk of the House
6 6 Approved , 2002
6 7
6 8
6 9
6 10 THOMAS J. VILSACK
6 11 Governor
Text: HF02564 Text: HF02566 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 2002 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jun 20 03:31:07 CDT 2002
URL: /DOCS/GA/79GA/Legislation/HF/02500/HF02565/020415.html
jhf