Iowa drainage district assessments affect a real estate closing because:
Correct Answer
B) Outstanding drainage district assessments are a lien on the property and must be addressed at closing
Iowa drainage districts are authorized under Iowa Code Chapter 468 to levy special assessments against benefited properties to fund drainage infrastructure construction and maintenance. These assessments attach as liens on the property. At closing, any outstanding drainage district assessments must be identified, prorated, or paid in full so that the buyer does not take title subject to undisclosed liens.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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