Amy Rosteck v. Charles Davisson

CourtCourt of Appeals of Iowa
DecidedJanuary 7, 2026
Docket25-0628
StatusPublished

This text of Amy Rosteck v. Charles Davisson (Amy Rosteck v. Charles Davisson) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amy Rosteck v. Charles Davisson, (iowactapp 2026).

Opinion

IN THE COURT OF APPEALS OF IOWA _______________

No. 24-1874 No. 25-0628 Filed January 7, 2026 _______________

Amy Rosteck, Plaintiff–Appellee, v. Charles Davisson, Defendant–Appellant. _______________

Appeal from the Iowa District Court for Linn County, The Honorable Jason D. Besler, Judge. _______________

AFFIRMED _______________

Peter C. Riley (argued) of Tom Riley Law Firm, P.L.C., Cedar Rapids, attorney for appellant.

Matthew L. Preston (argued) and Jared T. Favero of Brady Preston Gronlund PC, Cedar Rapids, attorneys for appellee. _______________

Heard at oral argument by Greer, P.J., and Schumacher and Ahlers, JJ. Opinion by Greer, P.J.

1 GREER, Presiding Judge.

The parties to a failed residential real estate contract disagree about how to handle the buyer’s earnest money. The buyer filed a replevin action seeking return of her earnest-money payment, received a jury verdict in her favor, and received an award of attorney fees. The seller appeals, arguing: (1) earnest money is not the proper subject of a replevin action, (2) the district court improperly instructed the jury about Iowa’s replevin law, (3) the buyer failed to show that she had properly rescinded the contract, and (4) the buyer is not entitled to the attorney’s fees and costs awarded.

On our review, we affirm. We find under this particular set of facts the earnest money was readily identifiable in the broker’s trust account, which required the money be set aside so that it could be taken and delivered pursuant to a replevin action. And that as applied, the buyer met the conditions of the contract to properly rescind it and thus, is entitled to attorney fees and costs.

I. Background Facts and Proceedings.

On May 25, 2022, Charles Davisson listed his Cedar Rapids home for sale (the property). Shortly after the property hit the market, Amy Rosteck, through her real estate agent, viewed the property and decided to make an offer. Davisson accepted Rosteck’s offer, and the parties began working to finalize the sale.

A. Seller’s Disclosure. On May 26, 2022, Davisson executed a seller’s property disclosure to provide information about the property to Rosteck in compliance with Iowa Code chapter 558A (2022). The disclosure was written on a form created by the Cedar Rapids Area Association of Realtors (CRAAR). In completing the form, Davisson certified that the

2 information on the form was “true and accurate to the best of [his] knowledge as of the date signed.” The form required Davisson to base his responses on “the information known or reasonably available to” him.

In section 4 of the disclosure form, Davisson was asked “Does anything on your property extend onto (encroach on) your neighbor’s property . . . ?” In section 18 of the disclosure form, titled “Other,” Davisson was required to disclose, in relevant part, (1) whether there were “any legal disputes or actions concerning the property (with neighbors or anyone else)” and (2) whether “there [was] anything else which would adversely affect the value or desirability of the property.” Davisson answered “No” to each of these questions.

B. Purchase and Sale Agreement. The following day, on May 27, Davisson and Rosteck entered into a purchase and sale agreement (the agreement) for the purchase of the property. The agreement was created using another CRAAR form.

The agreed-upon purchase price for the property was $625,000. Rosteck agreed to put down $100,000 in earnest money to be held in trust by the listing broker. The closing date listed on the agreement was June 27. As an additional provision, Rosteck added, “We would love to close on or before June 27, but would be willing to try to accommodate another date at seller’s discretion, if needed.”

The agreement required Davisson, upon request, to permit an attorney, selected by the buyer, to create a title opinion for the property to prove that Davisson had merchantable title. The agreement also required Davisson to maintain the property “in its present condition until possession.”

3 The agreement discussed contract rescission in two different provisions. The agreement first stated, If Seller fails to fulfill this contract, he will pay the Listing Broker the commission in full. The Buyer shall have the right to have all payments returned, and/or to proceed by any action at law or in equity and the Seller agrees to pay costs and reasonable attorney fees, and a receiver may be appointed.

The agreement also stated, “If the closing is delayed due to the Seller’s inability to provide marketable title this contract shall continue in force and effect until either party rescinds after giving seven business days written notice to the other party.”

C. Earnest Money Payment. Rosteck transferred the $100,000 earnest-money payment to the listing broker, Golden Circle Real Estate Group, LLC d/b/a Keller Wiliams Greater Des Moines (Keller Williams), to hold in trust. Rosteck electronically transferred the money to the broker’s trust account using a program called TrustFunds.

The TrustFunds program tracked all deposited monies by creating an invoice that documented who submitted the money, the date and time, the amount of money submitted, the invoice number, and the listing broker. The program kept track of the deposit by chronologically noting all receipts and disbursements, providing for a monthly reconciliation on an individual ledger account. After the money was submitted, an employee of Keller Williams continued tracking the funds in the account. The Keller Williams trust account also contained money from other real estate transactions. Keller Williams maintained the trust account in accordance with Iowa law.

D. Title Opinion and Title Issues. Before the parties closed on the agreement, Rosteck requested a title opinion, which, on June 20, Attorney

4 Daniel Willems provided. The opinion, in part, set out actions that needed to be taken before closing. In Willems’s words, these actions were “like a checklist of what needs to be done before [he would] approve the closing to happen.”

Among the tasks required before closing was the release of one mortgage and satisfaction of several judgments on the property. The mortgage was from Davisson to Dupaco Community Credit Union to secure a loan. The amount of the mortgage was $320,000. There were eleven judgments against the property or Davisson personally: eight foreclosures and three civil judgments.

Each foreclosure action had been brought by GreenState Credit Union and related to other properties Davisson or his company owned. The judgment liens for the foreclosures totaled over $870,000. Davisson alleged that another foreclosure had been resolved and that he had also made payments on the judgment, so the actual amount owed was slightly less.

Regarding the other civil litigation, one judgment was a small claims action in which Davisson owed $6,500 plus interest and court costs. Another was a judgment for $1,014.35 plus interest and court costs.

The final civil action involved a boundary dispute between Davisson and his neighbors at the property. This action arose after Davisson’s neighbors hired a surveyor to review their property’s boundaries. The survey showed that Davisson’s fence encroached onto the neighbors’ property. Davisson sued his neighbors, alleging the property on which the fence was built was now his under the theory of adverse possession. His neighbors brought claims of their own, and the matter proceeded to trial in March 2022. Trial resulted in neither party receiving a monetary judgment in their favor

5 and Davisson had to pay court costs. The neighbors filed a motion for a new trial, which was denied on May 16, 2022.

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Amy Rosteck v. Charles Davisson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amy-rosteck-v-charles-davisson-iowactapp-2026.