S.F. 320 Section 1. Section 558A.4, subsection 1, Code 2017, is 1 amended by adding the following new paragraph: 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 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 Pursuant to current Code chapter 558A, a person interested 16 in transferring real property must deliver a written disclosure 17 statement to a person interested in being transferred the real 18 property. Current law requires the disclosure statement to 19 include information relating to the condition and important 20 characteristics of the property. 21 This bill requires that the disclosure statement also 22 indicate whether topsoil, as defined in the bill, has been 23 removed from the property in the last 20 years. The bill 24 exempts disclosure statements prepared for the transfer of 25 agricultural land from the requirement. 26 Pursuant to Code section 558A.6, a transferor of real 27 property who violates the disclosure statement requirements 28 shall be liable for the amount of actual damages suffered by 29 the transferee, unless the transferor had no actual knowledge 30 of the inaccuracy or exercised ordinary care in obtaining 31 the information. In addition, Code section 714.8 provides 32 that a contract seller who intentionally provides inaccurate 33 information on a disclosure statement is guilty of a fraudulent 34 practice. 35 -1- LSB 2512XS (1) 87 gh/sc 1/ 1