The Iowa residential real estate purchase agreement (“residential purchase and sale agreement”) is an agreement between a buyer and seller that addresses the terms and conditions of a residential property sale. These terms include the purchase price, closing conditions, earnest money, and financial contingencies.
Do Sellers in Iowa Have to Disclose Property Defects?
Iowa does require real estate sellers to disclose any material defects. Certain states do not require the seller to disclose all defects (caveat emptor), meaning the buyer assumes the responsibility to conduct a real property inspection to seek out any potential defects with the property. In those states, if a buyer fails to conduct a proper examination, they may not have a legal alternative to reverse the real estate transaction.
Required Seller Disclosures in Iowa
Along with any material defects with the property, sellers in Iowa will also need to provide the following:
- Seller Property Condition Disclosure. In Iowa, sellers of residential property are required to complete this disclosure and provide it to potential buyers. This form covers structural/material damage of the dwelling, environmental and zoning information surrounding the property, and any other information that would be relevant to a person wishing to purchase the property.
- Lead-Based Paint Disclosure. Any home that was constructed earlier than 1978 must come with a disclosure upon the transfer of the property that includes any data concerning the presence of lead on the premises as well as educational materials that communicate the risks involved with coming into contact with the harmful substance.