Key Takeaways
- Iowa requires written agency disclosure at the first substantive contact with consumers
- The Agency Disclosure form must be provided to buyers and sellers before discussing confidential information
- Iowa emphasizes consumer protection with mandatory disclosure of agency relationships
- Licensees must disclose any personal interest in transactions in writing
- Failure to provide required disclosures can result in disciplinary action
Iowa Disclosure Requirements
Iowa law requires real estate licensees to make timely disclosures about agency relationships and other important matters.
Agency Disclosure Timing
Iowa requires agency disclosure at first substantive contact:
| Situation | When to Disclose |
|---|---|
| Listing appointment | At beginning of meeting |
| Buyer inquiry | Before substantive discussion |
| Open house | Before discussing property details |
| Phone/email inquiry | At first substantive contact |
What is "Substantive Contact"?
Substantive contact occurs when discussions go beyond simple property information to include:
- Client's motivation to buy or sell
- Financial qualifications
- Negotiation strategies
- Personal circumstances
Best Practice: Provide disclosure early—at the very beginning of any meeting or detailed conversation.
Required Disclosures
Agency Relationship Disclosure
Licensees must disclose:
| Information | Description |
|---|---|
| Who you represent | Buyer, seller, or both (dual agency) |
| Type of agency | Single, designated, or dual |
| Duties owed | What the client can expect |
| Consent required | For dual agency situations |
Form Requirements
| Requirement | Details |
|---|---|
| Written form | Must be in writing |
| Signature | Both parties should sign |
| Copy provided | Consumer receives a copy |
| Timing | Before confidential information discussed |
Personal Interest Disclosure
Licensees must disclose in writing when they have a personal interest:
| Situation | Disclosure Required |
|---|---|
| Buying/selling own property | Yes |
| Family member involved | Yes |
| Financial interest in transaction | Yes |
| Business relationship with party | Yes |
Key Rule: Disclose to ALL parties when you have any personal interest in the transaction.
Material Fact Disclosure
What Must Be Disclosed
Iowa requires disclosure of material facts that could affect a buyer's decision:
| Material Facts | Examples |
|---|---|
| Physical defects | Foundation issues, roof problems, water damage |
| Environmental issues | Mold, flooding history, contamination |
| Legal matters | Zoning violations, pending litigation, HOA issues |
| Property history | Material facts affecting value |
Iowa Property Condition Disclosure
Iowa requires sellers to complete a Property Condition Disclosure Statement:
| Requirement | Details |
|---|---|
| Who completes | Seller |
| When provided | Before purchase agreement or with offer |
| Contents | Known property conditions |
| Exceptions | Some property types exempt |
Exempt Properties
The following may be exempt from seller disclosure requirements:
- Foreclosure sales
- Estate sales (in some cases)
- New construction (builder warranty applies)
- Court-ordered sales
Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Federal Law: Lead-based paint disclosure is required regardless of state law exemptions.
Consequences of Non-Disclosure
| Violation | Potential Consequence |
|---|---|
| Failure to disclose agency | License discipline |
| Hiding material defects | Civil liability + license discipline |
| Lead paint non-disclosure | Federal penalties + liability |
| Misrepresentation | License revocation + civil action |
When must Iowa licensees provide agency disclosure?
Which of the following requires written disclosure in Iowa?
For which homes is lead-based paint disclosure required?