Chapter 3 of 1525% of exam

Iowa Disclosures and Agency

Iowa imposes distinctive transfer disclosures and standard agency-disclosure duties. This chapter covers the Groundwater Hazard Statement, the residential property condition disclosure, and dual agency.

Groundwater Hazard Statement

Iowa's time-of-transfer rules require a Groundwater Hazard Statement disclosing conditions such as wells, solid-waste disposal, hazardous materials, underground storage tanks, and private sewage systems. It is generally submitted with the deed when the transfer is recorded, and the broker should ensure it is completed so recording is not delayed.

Residential Property Condition Disclosure

Iowa requires sellers of most one-to-four-unit residential property to deliver a written property condition disclosure statement to the buyer, generally before the buyer is bound. It discloses known conditions affecting the property and is a disclosure of known facts, not a warranty that the property is defect-free.

Agency and Dual Agency

Licensees disclose their agency relationships to consumers. A licensee acting as a disclosed dual agent for both buyer and seller must obtain the written consent of both parties and keep each party's confidential information private, because a dual agent cannot fully advocate for either side.

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