Senate File 312 - Introduced SENATE FILE BY BOLKCOM Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to radon information disclosures in residential 2 real property transactions and making a penalty applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2247XS 83 5 tm/nh/14 PAG LIN 1 1 Section 1. NEW SECTION. 136B.6 RADON AWARENESS == REAL 1 2 ESTATE TRANSACTIONS. 1 3 1. Except as provided in subsection 4, prior to the 1 4 purchase of residential real property, the seller of property 1 5 shall provide to the buyer the radon hazards information 1 6 pamphlet described in subsection 3 and the radon hazards 1 7 information disclosure form described in subsection 2. If any 1 8 of the disclosures required by this section occur after the 1 9 buyer has made an offer to purchase the residential real 1 10 property, the seller shall complete the required disclosure 1 11 activities prior to accepting the buyer's offer and allow the 1 12 buyer an opportunity to review the information and amend the 1 13 offer. Nothing in this section shall be construed to imply an 1 14 obligation on the part of the seller to conduct any radon 1 15 testing or mitigation activities. 1 16 2. a. The department shall produce a standard radon 1 17 hazards information disclosure form to be used in all 1 18 applicable residential real estate transactions under this 1 19 section. 1 20 b. The standard radon hazards information disclosure form 1 21 shall be as follows: 1 22 RADON HAZARDS INFORMATION DISCLOSURE FORM 1 23 (For Residential Real Property Sales or Purchases) 1 24 Radon Warning Statement 1 25 Every buyer of any interest in residential real property is 1 26 notified that the property may present exposure to dangerous 1 27 levels of indoor radon gas that may place the occupants at 1 28 risk of developing radon=induced lung cancer. Radon, a 1 29 Class=A human carcinogen, is the leading cause of lung cancer 1 30 in nonsmokers and the second leading cause overall. The 1 31 seller of any interest in residential real property is 1 32 required to provide the buyer with any information on radon 1 33 test results of the dwelling showing elevated levels of radon 1 34 in the seller's possession. 1 35 The Iowa Department of Public Health strongly recommends 2 1 all homebuyers have an indoor radon test performed prior to 2 2 purchase or taking occupancy, and the implementation of 2 3 mitigation methods if elevated levels of radon are found. 2 4 Elevated radon concentrations can easily be reduced by a 2 5 qualified, licensed radon mitigator. 2 6 Seller's Disclosure 2 7 (initial each of the following which applies) 2 8 _______ Elevated radon concentrations (above the federal 2 9 Environmental Protection Agency recommended action level) are 2 10 known to be present within the dwelling (explain). 2 11 _______ Seller has provided the purchaser with all 2 12 available records and reports pertaining to elevated radon 2 13 concentrations within the dwelling. 2 14 _______ Seller has no knowledge of elevated radon 2 15 concentrations in the dwelling. 2 16 _______ Seller has no records or reports pertaining to 2 17 elevated radon concentrations within the dwelling. 2 18 Purchaser's Acknowledgment 2 19 (initial each of the following which applies) 2 20 _______ Purchaser has received copies of all information 2 21 listed in this disclosure form. 2 22 _______ Purchaser has received the Iowa Department of 2 23 Public Health's radon hazards information pamphlet. 2 24 Agent's Acknowledgment 2 25 (initial, if applicable) 2 26 _______ Agent has informed the seller of the seller's 2 27 obligations under Iowa law. 2 28 Certification of Accuracy 2 29 The following parties have reviewed the information in this 2 30 disclosure form and each party certifies, to the best of his 2 31 or her knowledge, that the information he or she provided is 2 32 true and accurate. 2 33 Seller/Date _______________________________ 2 34 Seller/Date _______________________________ 2 35 Purchaser/Date _______________________________ 3 1 Purchaser/Date _______________________________ 3 2 Agent/Date _______________________________ 3 3 Agent/Date _______________________________ 3 4 3. The department shall publish a radon hazards 3 5 information pamphlet designed to educate home buyers regarding 3 6 the dangers and hazards of indoor radon gas in residential 3 7 property, radon testing, and radon mitigation methods. 3 8 4. This section shall not apply to any of the following 3 9 residential real property transactions: 3 10 a. Transfers pursuant to a court order. 3 11 b. Transfers from a mortgagor to a mortgagee by deed in 3 12 lieu of foreclosure or consent judgment, transfers by a 3 13 judicial deed issued pursuant to a foreclosure sale, transfers 3 14 by a collateral assignment of a beneficial interest of a land 3 15 trust, or transfers by a mortgagee or a successor in interest 3 16 to the mortgagee's secured position or a beneficiary under a 3 17 deed in trust who has acquired the real property by deed in 3 18 lieu of foreclosure, consent judgment, or judicial deed issued 3 19 pursuant to a foreclosure sale. 3 20 c. Transfers by a fiduciary in the course of the 3 21 administration of a decedent's estate, guardianship, 3 22 conservatorship, or trust. 3 23 d. Transfers from one co=owner to another. 3 24 e. Transfers pursuant to testate or intestate succession. 3 25 f. Transfers made to a spouse, or to a person in the 3 26 lineal line of consanguinity of one or more of the sellers. 3 27 g. Transfers from an entity that has taken title to 3 28 residential real property from a seller for the purpose of 3 29 assisting in the relocation of the seller, so long as the 3 30 entity makes available to all prospective buyers a copy of the 3 31 disclosure form furnished to the entity by the seller. 3 32 h. Transfers to or from any governmental entity. 3 33 Sec. 2. Section 558A.2, subsection 1, Code 2009, is 3 34 amended to read as follows: 3 35 1. A person interested in transferring real property, or a 4 1 broker or salesperson acting on behalf of the person, shall 4 2 deliver a written disclosure statement to a person interested 4 3 in being transferred the real property. The disclosure 4 4 statement must be delivered prior to either the transferor 4 5 making a written offer for the transfer of the real property, 4 6 or accepting a written offer for the transfer of the real 4 7 property. At the same time the disclosure statement is 4 8 delivered, a radon hazards information pamphlet and a radon 4 9 hazards information disclosure shall also be delivered to a 4 10 person interested in being transferred the real property 4 11 pursuant to section 136B.6. 4 12 EXPLANATION 4 13 This bill relates to radon information disclosures in 4 14 residential real property transactions. 4 15 The bill requires that prior to the purchase of residential 4 16 real property a seller of property must provide to the buyer 4 17 the radon hazards information pamphlet published by the 4 18 department of public health and a radon hazards information 4 19 disclosure form. The bill provides that if any of the 4 20 required disclosures occur after the buyer has made an offer 4 21 to purchase the residential real property, the seller shall 4 22 complete the required disclosure activities prior to accepting 4 23 the buyer's offer and allow the buyer an opportunity to review 4 24 the information and possibly amend the offer. The bill 4 25 provides that nothing in the bill shall be construed to imply 4 26 an obligation on the part of the seller to conduct any radon 4 27 testing or mitigation activities. The bill provides a list of 4 28 certain residential real property transactions for which the 4 29 requirements of the bill would not apply. 4 30 The bill requires the department of public health to 4 31 produce a standard radon hazards information disclosure form 4 32 to be used in all applicable residential real estate 4 33 transactions. The bill provides the format for the disclosure 4 34 form which includes a radon warning statement, seller's 4 35 disclosures, purchaser's acknowledgments, agent's 5 1 acknowledgment, and certification of accuracy. 5 2 The bill requires the department to publish a radon hazards 5 3 information pamphlet designed to educate home buyers regarding 5 4 the dangers and hazards of indoor radon gas in residential 5 5 property, radon testing, and radon mitigation methods. 5 6 Code chapter 136B contains a general criminal penalty 5 7 provision which would make a person who violates any of the 5 8 provisions of this bill guilty of a serious misdemeanor. A 5 9 serious misdemeanor is punishable by confinement for no more 5 10 than one year and a fine of at least $315 but not more than 5 11 $1,875. 5 12 LSB 2247XS 83 5 13 tm/nh/14.1