Iowa Code Chapter 558A requires sellers of residential property to provide a Seller Disclosure Statement. Which of the following transactions is NOT exempt from the Iowa residential property seller disclosure requirement?
Correct Answer
C) A standard arm's-length sale of a single-family home between unrelated parties on the open market
A standard arm's-length sale of a single-family home between unrelated parties on the open market is the core transaction that Iowa Code Chapter 558A is designed to regulate. This type of sale is NOT exempt — it is precisely the transaction for which the seller disclosure statement is required. The other options represent transactions that fall within the statutory exemptions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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