SF 245 (LSB 2404XS (2) 87)

SENATE FILE 245

BY  JOCHUM

A BILL FOR

An Act relating to certain disclosure requirements for the transfer of real estate involving limited liability companies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 489.407A, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  a.  A transfer of an interest in real estate involving a limited liability company or foreign limited liability company as transferor or transferee, which transfer is exempt from payment of a real estate transfer tax under section 428A.2, shall include a market value disclosure statement prepared by the transferor. The market value disclosure statement shall reflect the actual or fair market value of the real estate transferred, as determined by an independent professional appraiser without regard to the amount of the sale price or consideration stated on the instrument of transfer.
   b.  The market value disclosure statement shall be included with the instrument of transfer and filed with the recorder of the county where the real estate is situated. For purposes of this subsection, “instrument of transfer” means the deed, real estate contract, lease, easement, mortgage, deed of trust, or any other instrument used to effect the transfer of any interest in real estate.
   c.  The value disclosed on a market value disclosure statement required in this subsection shall not be used to determine real estate transfer tax liability under chapter 428A.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to real estate transfers involving limited liability companies.
   The bill requires a transfer of real estate involving a limited liability company or foreign limited liability company as transferor or transferee which is exempt from real estate transfer tax to disclose the market value of the real estate being transferred in a market value disclosure statement prepared by the transferor. The statement shall reflect the actual or fair market value of the real estate, as determined by an independent professional appraiser. The market value disclosure statement is to be included with the instrument of transfer, as defined in the bill, and filed with the county recorder where the real estate is located. The value disclosed on the disclosure statement shall not be used to determine real estate transfer tax liability under Code chapter 428A.