Senate File 2053 - Introduced SENATE FILE 2053 BY CHELGREN A BILL FOR An Act requiring real estate disclosure statements to give 1 notice of topsoil removal and the use of property for 2 the manufacture of methamphetamine and making penalties 3 applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5067XS (2) 87 gh/rj
S.F. 2053 Section 1. Section 558A.4, subsection 1, Code 2018, is 1 amended by adding the following new paragraphs: 2 NEW PARAGRAPH . 0b. The disclosure statement shall indicate 3 whether topsoil has been removed from any part of the property 4 during the last twenty years, as provided in rules which shall 5 be adopted by the real estate commission pursuant to section 6 543B.9. However, information relating to topsoil removal shall 7 not be required in a disclosure statement for the transfer of 8 agricultural land as defined in section 6A.21. For purposes of 9 this paragraph, “topsoil” means the natural medium located at 10 the land surface with favorable characteristics for the growth 11 of vegetation. 12 NEW PARAGRAPH . 00b. The disclosure statement shall include 13 information relating to whether the real property has been used 14 for the manufacture of methamphetamine, its salts, isomers, or 15 salts of isomers, as provided in rules which shall be adopted 16 by the real estate commission pursuant to section 543B.9. If 17 the disclosure statement indicates that the real property 18 has been used for the manufacture of any such substance, the 19 transferor shall provide informational materials explaining 20 the health risks associated with contaminated real property 21 along with the disclosure statement. The commission shall 22 consult with the department of public health to develop such 23 informational materials. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 Pursuant to current Code chapter 558A, a person interested 28 in transferring real property must deliver a written disclosure 29 statement to a person interested in being transferred the real 30 property. Current law requires the disclosure statement to 31 include information relating to the condition and important 32 characteristics of the property. 33 This bill requires that the disclosure statement indicate 34 whether topsoil, as defined in the bill, has been removed from 35 -1- LSB 5067XS (2) 87 gh/rj 1/ 2
S.F. 2053 the property in the last 20 years. The bill exempts disclosure 1 statements prepared for the transfer of agricultural land from 2 the requirement. 3 The bill requires that the transferor of real property 4 disclose whether the property has been used for the manufacture 5 of methamphetamine. The bill also requires that the transferor 6 provide informational materials on the health risks associated 7 with contaminated real property along with the disclosure 8 statement if the disclosure statement indicates that the real 9 property has been used for the manufacture of methamphetamine. 10 The bill requires the real estate commission to consult with 11 the department of public health to develop the informational 12 materials. 13 Pursuant to Code section 558A.6, a transferor of real 14 property who violates the disclosure statement requirements 15 shall be liable for the amount of actual damages suffered by 16 the transferee, unless the transferor had no actual knowledge 17 of the inaccuracy or exercised ordinary care in obtaining 18 the information. In addition, Code section 714.8 provides 19 that a contract seller who intentionally provides inaccurate 20 information on a disclosure statement is guilty of a fraudulent 21 practice. 22 -2- LSB 5067XS (2) 87 gh/rj 2/ 2