Legislation
We're carefully watching the legislation listed below to make sure that any applicable laws are favorable to Iowa property owners.
Fire sprinkler legislation – HF 2062/SF 2051
Recently the state building commissioner developed rules that would mandate sprinklers in all new residential construction by 2013. The legislature’s Administrative Rules Review Committee granted a “session delay,” providing lawmakers an opportunity to act on the issue.
The language in this legislation has been amended several times and currently the bill language simply states that a city or county wanting to implement a fire sprinkler requirement must do so by taking a separate vote on the issue. This language still allows for home rule to apply.
Update: This legislation has an uphill battle in order to make it through the funnel deadline. Also see updated information below on carbon monoxide detector mandate, as the CO legislation was added to the fire sprinkler bill.
Private transfer fees – SF 2192
This legislation would prevent companies from creating private transfer fees. Private transfer fees are covenants that purport to run with title to the property (either perpetually or for a defined term) that typically require a fee be paid to the property owner or developer who creates the covenant upon each subsequent transfer of the affected property. These are fees not paid to local or state governments, but to private corporations or investors, in some cases for up to 99 years. Also, since it is a covenant on the deed of the property, the property cannot be transferred with clear title until the fee is paid. In cases where these fees have been attached to property transfers, they have been as much as 1% of the purchase price of the property.
Update: This legislation was approved by the Senate with a vote of 50-0. There is a subcommittee scheduled in the House this week, and it will then be eligible for the House Commerce Committee schedule.
Real Estate License Law Changes - SSB 3167
This legislation re-arranges code sections to where they are better suited, and further distinguishes between an Applicant and a Current Licensee when they are potentially subject to denial/revocation due to crimes. It also places administrative time frame upon the commission to quickly act – so those who have been convicted of a crime may have an expedited process. Finally, it allows the Real Estate Commission some discretion when considering granting a license to someone who may have been convicted of a crime. The bill allows the Real Estate Commission to consider the nature of the offense, extenuating circumstances, the time elapsed since the conviction, any restitution, etc.
Update: This legislation passed the Senate with a vote of 50-0. There is a subcommittee on this legislation this week and it will then be eligible for consideration by the House Commerce Committee.
Central registry for mechanic’s liens – HSB 559/SSB 3076:
This bill creates a central state construction registry for residential construction property for general contractors, owner-builders, and subcontractors to protect their lien rights. The state construction registry would be a publicly accessible centralized electronic database created and maintained by the Iowa Finance Authority, which would provide a centralized resource of all persons or companies furnishing labor or materials that may file a lien upon the improved property.
Update: This legislation is eligible for debate on the House floor. With the funnel deadline approaching on Friday, this legislation has a long way to go in order to ‘survive’ funnel.
Escrow Licensing legislation – SSB 3155/HSB 629
This is a study bill providing for the licensing and regulation of real estate closing agents. This legislation will require escrow/closing companies to establish a trust account for funds received and also will establish a bond requirement for these companies. This legislation is proposed by the Iowa Finance Authority and will be regulated by the Banking Division. Real estate licensees and brokers are exempt from the legislation, as well as, insurance companies, bankers, attorneys, and others.
This legislation passed the Senate Commerce Committee. The legislation was amended to change the bonding requirement for escrow companies from $250,000 to $25,000.
Update: This legislation is eligible for debate in the Senate; however, it must also pass a House committee by Friday in order to be eligible for further consideration due to the funnel deadline.
Landlord Tenant Eviction notice – HSB 693/SF 2300
Update: This bill amends the service of notice requirements for landlords and tenants. The bill is in response to the Iowa Supreme Court’s November 20, 2009, decision in War Eagle Village Apartments v. Plummer. The bill changes Code sections, dealing with certain notices to quit, and certain notices of termination.
Under the bill, such notices to quit must be served upon the tenant according to one or more specified methods. The acceptable methods of service for a notice include delivery evidenced by an acknowledgment of delivery that is signed and dated by a resident of the dwelling unit, personal service in the manner provided by the Iowa rules of civil procedure for the personal service of original notice, and both posting on the primary entrance door of the dwelling unit and mailing by both regular mail and certified mail. If the original notice is posted, it must be posted not less than three days prior to the hearing and shall include the date the original notice was posted.
Update: This legislation has passed both the Senate and House and is waiting to be messaged to the Governor.
Carbon monoxide detector mandate - HSB 577/SSB 3023
This legislation would mandate the installation of carbon monoxide detectors in multiple unit residential buildings and single-family homes. This requirement would apply to both existing and new construction homes. The owner of a single family home is responsible for installing a carbon monoxide detector and shall certify such installation upon filing for a homestead credit. Owners of multiple unit residential buildings and single-family rental units are also required to supply light-emitting carbon monoxide detectors for hearing-impaired tenants.
The carbon monoxide detector mandate bill was originally drafted to mirror current laws, which mandate smoke detectors. Homeowners are required to sign on their homestead tax credit forms that they have a smoke detector. This legislation would have also made a homeowner sign off that they have installed carbon monoxide detectors as well. This bill is not eligible for further debate this year.
Update: This legislation did not survive the first funnel deadline, but the carbon monoxide bill language has been offered as an amendment to HF 2062 – the ban on fire sprinkler legislation.
New flood plain requirement on sellers’ disclosure form – HSB 512/SSB 3089
This legislation would mandate that the sellers’ disclosure form include questions requiring the seller to disclose the flood plain designation that has been assigned to the property and, to the best of the seller's knowledge, whether the property has ever been inundated by a flood or payment has been made pursuant to flood insurance coverage or federal assistance has been received on account of flood damage to the property. There is also legislation that would mandate the type of flood plain where the structure is located, and whether alluvial soils are present on the property to be disclosed on the seller’s disclosure form.
Update: The seller’s disclosure requirements included in these bills will not move forward. The Senators and Representatives were satisfied with the mandated flood disclosure requirements that already exist on the seller’s disclosure forms, and didn’t feel that additional requirements were necessary.
Real Estate Installment Contract Sales - SF 2157
This bill deals with the amount of time to record a real estate installment sales contract. This legislation changes current code and states that the contract seller must file the documents with the county recorder within 90 days as opposed to the current law which is 180 days from the date the contract was signed.
The bill also states that any contract disclosure statements that are required in installment sales must be recorded within 30 days rather than the current codes 45 days.
Update: This bill has passed the Senate and will be eligible for consideration in the House Commerce Committee this week.
Recently the state building commissioner developed rules that would mandate sprinklers in all new residential construction by 2013. The legislature’s Administrative Rules Review Committee granted a “session delay,” providing lawmakers an opportunity to act on the issue.
The language in this legislation has been amended several times and currently the bill language simply states that a city or county wanting to implement a fire sprinkler requirement must do so by taking a separate vote on the issue. This language still allows for home rule to apply.
Update: This legislation has an uphill battle in order to make it through the funnel deadline. Also see updated information below on carbon monoxide detector mandate, as the CO legislation was added to the fire sprinkler bill.
Private transfer fees – SF 2192
This legislation would prevent companies from creating private transfer fees. Private transfer fees are covenants that purport to run with title to the property (either perpetually or for a defined term) that typically require a fee be paid to the property owner or developer who creates the covenant upon each subsequent transfer of the affected property. These are fees not paid to local or state governments, but to private corporations or investors, in some cases for up to 99 years. Also, since it is a covenant on the deed of the property, the property cannot be transferred with clear title until the fee is paid. In cases where these fees have been attached to property transfers, they have been as much as 1% of the purchase price of the property.
Update: This legislation was approved by the Senate with a vote of 50-0. There is a subcommittee scheduled in the House this week, and it will then be eligible for the House Commerce Committee schedule.
Real Estate License Law Changes - SSB 3167
This legislation re-arranges code sections to where they are better suited, and further distinguishes between an Applicant and a Current Licensee when they are potentially subject to denial/revocation due to crimes. It also places administrative time frame upon the commission to quickly act – so those who have been convicted of a crime may have an expedited process. Finally, it allows the Real Estate Commission some discretion when considering granting a license to someone who may have been convicted of a crime. The bill allows the Real Estate Commission to consider the nature of the offense, extenuating circumstances, the time elapsed since the conviction, any restitution, etc.
Update: This legislation passed the Senate with a vote of 50-0. There is a subcommittee on this legislation this week and it will then be eligible for consideration by the House Commerce Committee.
Central registry for mechanic’s liens – HSB 559/SSB 3076:
This bill creates a central state construction registry for residential construction property for general contractors, owner-builders, and subcontractors to protect their lien rights. The state construction registry would be a publicly accessible centralized electronic database created and maintained by the Iowa Finance Authority, which would provide a centralized resource of all persons or companies furnishing labor or materials that may file a lien upon the improved property.
Update: This legislation is eligible for debate on the House floor. With the funnel deadline approaching on Friday, this legislation has a long way to go in order to ‘survive’ funnel.
Escrow Licensing legislation – SSB 3155/HSB 629
This is a study bill providing for the licensing and regulation of real estate closing agents. This legislation will require escrow/closing companies to establish a trust account for funds received and also will establish a bond requirement for these companies. This legislation is proposed by the Iowa Finance Authority and will be regulated by the Banking Division. Real estate licensees and brokers are exempt from the legislation, as well as, insurance companies, bankers, attorneys, and others.
This legislation passed the Senate Commerce Committee. The legislation was amended to change the bonding requirement for escrow companies from $250,000 to $25,000.
Update: This legislation is eligible for debate in the Senate; however, it must also pass a House committee by Friday in order to be eligible for further consideration due to the funnel deadline.
Landlord Tenant Eviction notice – HSB 693/SF 2300
Update: This bill amends the service of notice requirements for landlords and tenants. The bill is in response to the Iowa Supreme Court’s November 20, 2009, decision in War Eagle Village Apartments v. Plummer. The bill changes Code sections, dealing with certain notices to quit, and certain notices of termination.
Under the bill, such notices to quit must be served upon the tenant according to one or more specified methods. The acceptable methods of service for a notice include delivery evidenced by an acknowledgment of delivery that is signed and dated by a resident of the dwelling unit, personal service in the manner provided by the Iowa rules of civil procedure for the personal service of original notice, and both posting on the primary entrance door of the dwelling unit and mailing by both regular mail and certified mail. If the original notice is posted, it must be posted not less than three days prior to the hearing and shall include the date the original notice was posted.
Update: This legislation has passed both the Senate and House and is waiting to be messaged to the Governor.
Carbon monoxide detector mandate - HSB 577/SSB 3023
This legislation would mandate the installation of carbon monoxide detectors in multiple unit residential buildings and single-family homes. This requirement would apply to both existing and new construction homes. The owner of a single family home is responsible for installing a carbon monoxide detector and shall certify such installation upon filing for a homestead credit. Owners of multiple unit residential buildings and single-family rental units are also required to supply light-emitting carbon monoxide detectors for hearing-impaired tenants.
The carbon monoxide detector mandate bill was originally drafted to mirror current laws, which mandate smoke detectors. Homeowners are required to sign on their homestead tax credit forms that they have a smoke detector. This legislation would have also made a homeowner sign off that they have installed carbon monoxide detectors as well. This bill is not eligible for further debate this year.
Update: This legislation did not survive the first funnel deadline, but the carbon monoxide bill language has been offered as an amendment to HF 2062 – the ban on fire sprinkler legislation.
New flood plain requirement on sellers’ disclosure form – HSB 512/SSB 3089
This legislation would mandate that the sellers’ disclosure form include questions requiring the seller to disclose the flood plain designation that has been assigned to the property and, to the best of the seller's knowledge, whether the property has ever been inundated by a flood or payment has been made pursuant to flood insurance coverage or federal assistance has been received on account of flood damage to the property. There is also legislation that would mandate the type of flood plain where the structure is located, and whether alluvial soils are present on the property to be disclosed on the seller’s disclosure form.
Update: The seller’s disclosure requirements included in these bills will not move forward. The Senators and Representatives were satisfied with the mandated flood disclosure requirements that already exist on the seller’s disclosure forms, and didn’t feel that additional requirements were necessary.
Real Estate Installment Contract Sales - SF 2157
This bill deals with the amount of time to record a real estate installment sales contract. This legislation changes current code and states that the contract seller must file the documents with the county recorder within 90 days as opposed to the current law which is 180 days from the date the contract was signed.
The bill also states that any contract disclosure statements that are required in installment sales must be recorded within 30 days rather than the current codes 45 days.
Update: This bill has passed the Senate and will be eligible for consideration in the House Commerce Committee this week.
Iowa's Capitol Dome
Update: March 3, 2010
This Friday, March 5th, marks the second funnel deadline at the Capitol. This is the date by which legislation must be approved by committees in both the Senate and the House and must have passed at least one chamber. (Ways and Means-taxation issues and Appropriations committee bills are exempt from the funnel deadline and will remain eligible for debate the entire session.) There will be a considerable amount of committee work this week in order for legislation to meet the funnel deadline.
Find more legislative information at http://www.legis.state.ia.us
This Friday, March 5th, marks the second funnel deadline at the Capitol. This is the date by which legislation must be approved by committees in both the Senate and the House and must have passed at least one chamber. (Ways and Means-taxation issues and Appropriations committee bills are exempt from the funnel deadline and will remain eligible for debate the entire session.) There will be a considerable amount of committee work this week in order for legislation to meet the funnel deadline.
Find more legislative information at http://www.legis.state.ia.us
Contact your Legislators
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Or, look up and contact your legislators through the Iowa Legislature website.
Join our contact system and receive alerts and contact info for important issues.
Or, look up and contact your legislators through the Iowa Legislature website.
What do the bill numbers mean?
The legislative issues listed to the left are often accompanied by bill numbers. You can click the bill number to read the full text of the proposed legislation.
HSB = House Study Bill
HF = House File
SSB = Senate Study Bill
SF = Senate File
The legislative issues listed to the left are often accompanied by bill numbers. You can click the bill number to read the full text of the proposed legislation.
HSB = House Study Bill
HF = House File
SSB = Senate Study Bill
SF = Senate File
