Senate File 6 - IntroducedA Bill ForAn Act 1relating to contractor warranties including by providing
2for the transfer of contractor warranties upon the passage
3of legal or equitable title in the property, requiring
4information relating to contractor warranties in real estate
5disclosure statements, making penalties applicable, and
6including applicability provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  558.73  Contractor warranties —
2transferability.
   31.  As used in this section, “contractor warranty” means
4an unexpired warranty provided by a contractor to an owner of
5real property in connection with the contractor’s performance
6of any alteration, repair, addition, modification, or
7improvement to the owner’s real property, whether express or
8implied. “Contractor warranty”, in relation to residential
9property, includes any contractor warranty provided for
10home improvement work, including but not limited to the
11construction, painting or coating, installation, replacement
12or repair of driveways, sidewalks, swimming pools, unattached
13structures, porches, kitchens, bathrooms, chimneys, fireplaces,
14stoves, air conditioning or heating systems, hot water
15heaters, water treatment systems, electrical wiring or systems,
16plumbing fixtures or systems, doors, windows, roofs, gutters,
17downspouts, and siding.
   182.  A contractor warranty shall survive the passing of legal
19or equitable title in the real property to any subsequent owner
20of the real property for the duration to which the warranty is
21unexpired.
22   Sec. 2.  Section 558A.4, subsection 1, Code 2019, is amended
23by adding the following new paragraph:
24   NEW PARAGRAPH.  0b.  The disclosure statement shall include
25information relating to unexpired contractor warranties
26received by the transferor, as provided in rules which shall
27be adopted by the real estate commission pursuant to section
28543B.9. For purposes of this paragraph, “contractor warranty”
29means the same as defined in section 558.73.
30   Sec. 3.  APPLICABILITY.  The section of this Act enacting
31section 558A.4, subsection 1, paragraph “0b”, applies to
32transfers of real property on or after the effective date of
33this Act.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-1-1the explanation’s substance by the members of the general assembly.
   2This bill relates to contractor warranties.
   3The bill defines “contractor warranty” to mean an unexpired
4warranty provided by a contractor to an owner of real property
5in connection with the contractor’s performance of any
6alteration, repair, addition, modification, or improvement to
7the real property, whether express or implied. “Contractor
8warranty”, in relation to residential property, includes any
9contractor warranty for home improvement work, as described in
10the bill.
   11The bill provides that a contractor warranty shall survive
12the passing of legal or equitable title in the real property to
13any subsequent owner of the real property for the duration to
14which the warranty is unexpired.
   15Current law requires a person interested in transferring
16real property including at least one but not more than four
17dwelling units to deliver a written disclosure statement to
18a person interested in being transferred the real property,
19including information relating to the condition and important
20characteristics of the property. The bill requires that the
21written disclosure statement also include information relating
22to unexpired contractor warranties received by the transferor,
23as provided in rules adopted by the real estate commission.
   24Pursuant to Code section 558A.6, a transferor of real
25property who violates the disclosure statement requirements
26shall be liable for the amount of actual damages suffered by
27the transferee, unless the transferor had no actual knowledge
28of the inaccuracy or exercised ordinary care in obtaining
29the information. In addition, Code section 714.8 provides
30that a contract seller who intentionally provides inaccurate
31information is guilty of a fraudulent practice.
   32The bill specifies that the section of the bill requiring
33real estate disclosure statements to include information
34relating to contractor warranties applies to transfers of real
35property on or after the effective date of the bill.
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