SF 38 (LSB 1706XS (2) 86)

SENATE FILE 38

BY  JOCHUM

A BILL FOR

An Act relating to the transfer of real property by requiring disclosure of the use of property for the manufacture, use, storage, or sale of methamphetamine and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 558A.4, subsection 1, Code 2015, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  0b.  The disclosure statement shall include information relating to whether the real property has been used for the manufacture, use, storage, or sale of methamphetamine, its salts, isomers, or salts of isomers, as provided in rules which shall be adopted by the real estate commission pursuant to section 543B.9. If the disclosure statement indicates that the real property has been used for the manufacture, use, storage, or sale of any such substance, the transferor shall provide informational materials explaining the health risks associated with contaminated real property along with the disclosure statement. The commission shall consult with the department of public health to develop such informational materials.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill requires that the transferor of real property disclose whether the property has been used for the manufacture, use, storage, or sale of methamphetamine. The bill also requires that the transferor provide informational materials on the health risks associated with contaminated real property along with the disclosure statement if the disclosure statement indicates that the real property has been used for the manufacture, use, storage, or sale of methamphetamine. The bill requires the real estate commission to consult with the department of public health to develop the informational materials.
   Code section 714.8(20) provides that if real property is being sold on contract, the contract seller is guilty of a fraudulent practice if the seller intentionally provides inaccurate information on matters required to be included in a disclosure statement.