Senate Study Bill 3036 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED ATTORNEY GENERAL BILL) A BILL FOR An Act relating to certain residential real estate contracts 1 and Iowa’s consumer fraud Act and making penalties 2 applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5402DP (5) 83 rh/nh

S.F. _____ H.F. _____ Section 1. Section 558.70, Code 2009, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5A. A violation of this section is an 3 unlawful practice pursuant to section 714.16. 4 EXPLANATION 5 Code section 558.70 requires a seller of certain residential 6 real estate, prior to executing a residential real estate 7 installment sales contract, to deliver a written contract 8 disclosure statement to the purchaser that includes, among 9 other items, certain information relating to the financing 10 of the real estate purchase. This bill provides that a 11 violation of this section is a violation of Iowa’s consumer 12 fraud Act (Code section 714.16). Code section 714.16 prohibits 13 unfair and deceptive trade practices in the sale, lease, or 14 advertisement of a product or service and authorizes the 15 attorney general to file a lawsuit on behalf of an aggrieved 16 person to obtain temporary and permanent injunctive relief, 17 consumer reimbursement, costs and attorney fees, and civil 18 penalties up to $40,000 per violation. This amendment to 19 the law supplements current law whereby a contract purchaser 20 injured by a violation of Code section 558.70 may file a 21 lawsuit to obtain recision of the contract, monetary damages, 22 and reasonable attorney fees. 23 -1- LSB 5402DP (5) 83 rh/nh 1/ 1