Selling a House in Iowa

Selling a house is one of the most significant legal transactions you'll ever participate in. It's important to know your legal rights and understand the process.

Working With a Real Estate Agent

In Iowa, real estate agents have what's called a "fiduciary duty" to the party they represent, and they must disclose their agency relationship in writing to the parties to a transaction prior to an offer being made or accepted. In Iowa, this means that the agents are held by law to owe specific duties to the person who they are representing, in this case the seller. In addition to duties or obligations that are set forth in a listing agreement or other contract, a fiduciary's duties include:

• Utmost care
• Integrity
• Honesty
• Loyalty
• Disclosure

Iowa law requires that you complete a property disclosure form. You should disclose the following potential house defects:

• Plumbing and sewage problems
• Water leakage of any type, including in basements
• Termites or other infestations
• Roof defects
• Heating or air conditioning system and electrical system problems
• Property drainage problems
• Foundation instabilities or cracks
• Problems with title to the property
• Neighbor issues that aren't obvious
• Known test results for the presence of radon and whether asbestos is present
• Information regarding zoning classification, restrictive covenants and whether property is in a real estate improvement district or subject to special tax assessments
• Lead paint (required under the federal Residential Lead-Based Paint Hazard Reduction Act of 1992 for homes built prior to 1978)

Purchase Agreements

When you've got a serious buyer, you'll receive a written offer to purchase your home, sometimes called a "residential real estate purchase agreement" or "purchase agreement," which states the finalized terms and conditions for the sale.

You won't have very long to decide whether or not to take the offer or propose a counteroffer so it's important to be informed ahead of time.

Common counter-proposal items include:

• A higher purchase price
• A higher deposit
• Giving buyer less time to remove contingencies
• Excluding certain items from the sale
• Providing you move in time to vacate the house after the sale is closed
• A clause making it a contingency that your attorney approve the contract
• A "liquidated damages clause" that details how much money the buyer will owe you if the buyer backs out of the deal for reasons other than the contingencies listed in the contract

Legal Title Issues

Your Iowa real estate lawyer or title company will investigate the legal title of the property you want to sell, and may find issues you'll need to understand.

In Iowa, for example, an implied easement may be present where a person grants lands to which there is no accessible right-of-way except over her or his land or retains land that is inaccessible except over the land which the person conveys. In such instances a right-of-way is presumed to have been granted or reserved. Such an implied grant or easement in lands or estates exists where there is no other reasonable and practicable way of accessing the property, and it is reasonably necessary for the beneficial use or enjoyment of the part granted or reserved.

Your property may also be subject to a "lien," which is a charge on the property to satisfy a debt or other obligation. A lien encumbers property as long as it exists and has been recorded in the public records.

In Iowa, liens on a piece of property may include:

• Mortgages
• Deeds of trust
• Land sale contracts
• Involuntary liens (includes mechanics' liens, liens for unpaid taxes and liens filed by creditors holding judgments against the owner)

Closing Costs

In Iowa, you can expect to pay for some or all of the following charges - called " closing costs"-at the time you sell your home:

• Broker's commission
• Survey
• Title guaranty coverage
• Recorded release of mortgage
• Transfer taxes
• Attorney's fee
• Home inspections

Specific Performance

In Iowa, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called "specific performance," which is a legal action to compel performance of a contract. For this contract remedy, a court can order the parties to complete the contract. The buyer must then deliver the purchase price and the seller must then deliver the deed. If you have second thoughts on a particular sale, you'll want to immediately contact an attorney.