Property Disclosure Requirements
Three items drawn from Iowa Code chapter 558A (the seller's property condition disclosure), rule 481-Chapter 2014 (the commission's form and the licensee's duties), and Iowa Code section 558.69 (the groundwater hazard statement, which is a recording requirement rather than a marketing one).
Chapter 558A: Who, When and What
Chapter 558A applies to a transfer of real estate that includes at least one but not more than four dwelling units. Section 558A.1(7) excludes transfers made under court order, to a mortgagee in default situations, by a fiduciary administering an estate or trust, between joint tenants or tenants in common, to a spouse or a relative within the third degree, under a dissolution decree, to or from a government, by quitclaim deed, and by power of attorney. Section 558A.2(1) requires the written statement to be delivered before the transferor makes a written offer or accepts one; delivery is personal, by certified or registered mail, or electronic, and electronic delivery is not complete until the transferee acknowledges receipt in writing - an automated read receipt or fax confirmation does not count (rule 481-2014.1(6)). Section 558A.3 requires good faith, permits identified approximations where information is unavailable after reasonable effort, and requires an amended statement when the information becomes inaccurate or misleading. The statement may be filed with the county recorder, but failure to file does not cloud title, and section 558A.8 provides that a transfer is not invalidated solely by a failure to comply.
The Form, the Licensee's Duties, and Liability
Rule 481-2014.1(7) sets the minimum contents and prints a recommended form covering basement and foundation, roof, sewer, heating, cooling, plumbing and electrical systems, pest infestation, asbestos, radon, lead-based paint, flood plain, lead water service lines, zoning, covenants, shared or co-owned features, settling or drainage problems, structural damage, well and pump, and septic tanks - with a buyer acknowledgment that the statement is not a warranty and not a substitute for an inspection, and receipt of the Iowa Radon Home-Buyers and Sellers Fact Sheet. The listing licensee obtains the completed, signed and dated disclosure when the listing is taken, delivers it before the seller offers or accepts, attempts to get the buyer's signature or other proof of delivery, and keeps it five years if the transaction closes. A licensee representing a buyer must notify the buyer of the seller's obligation and, if the statement is late, of the right under section 558A.2(2) to withdraw the offer or revoke the acceptance without liability within three days of personal delivery or five days of mail or electronic delivery - after which rule 481-2013.4 requires prompt return of the earnest money without the seller's consent. Section 558A.6 limits liability to actual damages, and a seller, broker or salesperson is liable only with actual knowledge of the error or a failure to use ordinary care.
The Groundwater Hazard Statement
Section 558.69(1) requires a groundwater hazard statement to be submitted to the county recorder with each declaration of value under chapter 428A, disclosing any known private burial site, wells and their status, potentially hazardous solid waste disposal sites, underground storage tanks with type, size and contents, hazardous waste, and private sewage disposal systems with inspection status. At least one seller or the seller's agent signs it, and the seller gives the buyer a copy. Since 2022 Iowa Acts ch. 1028, if none of those conditions exists no statement is submitted; instead the deed carries on its first page the exemption language quoted in section 558.69(8)"a". If neither the statement nor that language accompanies a required declaration of value, the recorder must refuse to record, though a recording made in violation does not invalidate the deed. The recorder transmits statements to the department of natural resources, no recording fee may be charged for them, and the property owner - not the owner's agent or the preparer - is responsible for accuracy unless the agent has direct knowledge to the contrary.
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State-specific details
State exam facts
- State regulator
- Iowa Real Estate Commission (DIAL)
- Exam vendor
- PSI
- Scored questions
- 115
- Time limit
- 180 minutes
Who regulates real estate brokers in Iowa?
The Iowa Real Estate Commission, now within the Department of Inspections, Appeals, and Licensing (DIAL), licenses brokers and salespersons. The Commission contracts with PSI to deliver the exams.
What experience do I need before the Iowa broker exam?
Iowa Code § 543B.15(7) requires 24 months as a licensed salesperson actively engaged in real estate (or substantially equal experience) plus 60 contact hours of Commission-approved broker education completed within the 24 months before the broker exam — on top of the salesperson pre-license course.
How is the Iowa broker exam structured?
PSI bulletin 120 sets the broker exam at 115 scored questions in 180 minutes: a 75-question national portion scored to 80 points (pass 60 points, 120 minutes) and a 40-question Iowa portion worth 40 points (pass 30, 60 minutes). Both portions must be passed. The national portion is scored by points because some national broker items are worth two points.
Sources: https://dial.iowa.gov/licenses/other-professional-licensure/real-estate-licensees, https://test-takers.psiexams.com/api/content/bulletin/120
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