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