§ 558.71 — Civil liabilities

Iowa § 558.71

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

Text

1. A contract purchaser injured by a violation of section 558.70 may within one year of
the execution of the contract bring an equitable action in the district court of record where
the real estate is located to obtain relief as follows:
a. The court may rescind a contract that remains in existence at the time the action is
commenced, and award restitution to the contract purchaser determined in accordance with
the standards for damages specified in paragraph “b”.
b. Ifthecontracthasbeenterminatedbyanymeanspriortocommencementoftheaction,
the contract purchaser may recover a money judgment against the original contract seller
for a sum equal to all amounts the contract purchaser paid to the contract seller, plus the
reasonable value of any improvements to the real estate made by the contract purchaser,
plus any other proximately caused or incidental damages, less the fair rental value of the real
estate for the period of time the contract purchaser was in possession of the real estate. For
the purposes of this paragraph, the fair rental value of the real estate shall be based on the
fair rental value of the real estate as of the date the real estate installment sales contract was
executed by all parties to the contract.
2. A contract purchaser alleging a violation of section 558.70 bears the burden of
establishing such violation by a preponderance of the evidence.
3. An order of rescission or a money judgment awarded shall not affect any rights or
responsibilities arising from any conveyance or encumbrance made by either the contract
purchaser or the contract seller prior to the filing of a lis pendens in the action in which such
relief is sought, unless it is established by clear and convincing evidence that the recipient
of such conveyance or encumbrance had prior knowledge that the contract was executed in
violation of the requirements of section 558.70.
4. In an action in which a contract purchaser obtains relief under this section, the court
shall also award to such contract purchaser reasonable attorney fees incurred in bringing the
action.