§ 558.70 — Contract disclosure statement required for certain residential real estate installment sales

Iowa § 558.70

• Jurisdiction: Iowa
• Title XIV: PROPERTY
• Ch. 558: CONVEYANCES

Text

installment sales.
1. Prior to executing a residential real estate installment sales contract, the contract seller

shall deliver a written contract disclosure statement to the contract purchaser which shall
clearly set forth the following information:
a. If the real estate subject to the contract has been separately assessed for property tax
purposes, the current assessed value of the real estate.
b. (1) A complete description of any property taxes due and payable on the real estate
and a complete description of any special assessment on the real estate and the term of the
assessment.
(2) Information on whether any property taxes or special assessments are delinquent and
whether any tax sale certificates have been issued for delinquent property taxes or special
assessments on the real estate.
c. A complete description of any mortgages or other liens encumbering or secured by the
real estate, including the identity and address of the current owner of record with respect to
each such mortgage or lien, as well as a description of the total outstanding balance and due
date under any such mortgage or lien.
d. Acompleteamortizationscheduleforallpaymentstobemadepursuanttothecontract,
which amortization schedule shall include information on the portion of each payment to be
applied to principal and the portion to be applied to interest.
e. If the contract requires a balloon payment, a complete description of the balloon
payment, including the date the payment is due, the amount of the balloon payment, and
other terms related to the balloon payment. For purposes of this paragraph, a “balloon
payment” is any scheduled payment that is more than twice as large as the average of earlier
scheduled payments.
f. The annual rate of interest to be charged under the contract.
g. Astatementthatthepurchaserhasarighttoseekindependentlegalcounselconcerning
the contract and any matters pertaining to the contract.
h. A statement that the purchaser has a right to receive a true and complete copy of the
contract after it has been executed by all parties to the contract.
i. The mailing address of each party to the contract.
j. If the contract is subject to forfeiture, a statement that if the purchaser does not comply
with the terms of the contract, the purchaser may lose all rights in the real estate and all sums
paid under the contract.
2. The contract disclosure statement shall be dated and signed by each party to the
contract, and the contract purchaser shall be provided a complete copy of the contract at the
time the disclosure statement is delivered to the contract purchaser pursuant to subsection 1.
3. Within five days after a residential real estate installment sales contract has been
executed by all parties to the contract, the contract seller shall mail a true and correct copy of
the contract by regular first class mail to the last known address of each contract purchaser.
However, this requirement is satisfied as to any purchaser who acknowledges in writing that
the purchaser has received a true and correct copy of the fully executed contract.
4. This section applies to a contract seller who entered into four or more residential real
estatecontractsinthethreehundredsixty-fivedaysprevioustothecontractsellersigningthe
contract disclosure statement. For purposes of this subsection, two or more entities sharing
a common owner or manager are considered a single contract seller. This section does not
apply to a person or organization listed in section 535B.2, subsections 1 through 6.
5. A violation of this section affects title to property only as provided in section 558.71.
6. For purposes of this section, “residential real estate” means a residential dwelling
containing no more than two single-family dwelling units, which is not located on a tract of
land used for agricultural purposes as defined in section 535.13.
7. This section and any rules adopted to administer this section shall not limit or abridge
any duty, requirement, obligation, or liability for disclosure created by any other provision of
law, or under a contract between the parties.