USA - IOWA Law and Practice Contributed by: David M Erickson, Robert J Douglas, Jr, Christopher S Talcott and Amy S Montgomery, Dentons Davis Brown
there are no groundwater hazards. The matters covered by a groundwater hazard statement are: • whether any known private burial site is situ - ated on the property; • whether any known wells are situated on the property; • whether any known disposal site for solid waste which has been deemed to be poten - tially hazardous by the department of natural resources exists on the property; • whether any known underground storage tank subsection exists on the property; • whether any known hazardous waste exists on the property; and • whether any known private sewage disposal system exists on the property. The following language must be included on a deed when no groundwater hazard statement is required: “There is no known private burial site, well, solid waste disposal site, underground stor - age tank, hazardous waste, or private sewage disposal system on the property as described in Iowa Code section 558.69, and therefore the transaction is exempt from the requirement to submit a groundwater hazard statement.” Pursuant to Iowa’s marketable title statute, additional instruments may serve as muniments of title. For example, a properly admitted last will and testament of a decedent who was the vested titleholder of real estate may serve as a muniment of title. Additionally, a properly drafted divorce decree may serve as a muniment of title. The sale of title insurance is prohibited in Iowa. Thus, although out of state title insurance com - panies may write title insurance policies on Iowa land, and the State of Iowa offers the equivalent of a title insurance policy through its Iowa Title Guaranty division, most Iowa real estate trans -
actions involve the issuance of an attorney’s title opinion based upon examination of an abstract of title. Additionally, transactions are typically closed through an attorney’s office or an escrow company, and not a title insurance company. Nearly all documents must be notarised to be recordable in Iowa. Following the temporary approval of electronic notary services during the COVID-19 pandemic via Governor’s proclama - tion, the Iowa legislature adopted a permanent revision to Iowa Uniform Law on Notarial Acts allowing such service. 2.4 Real Estate Due Diligence The nature and manner of due diligence per - formed by buyers of real estate is largely dependent upon the nature of the transaction. In residential transactions, subject to certain exceptions, sellers must disclose defects relat - ed to the property as mandated by the Iowa Code. The disclosure statement must be deliv - ered prior to making or accepting a written offer for the transfer of the real property and must include information relating to the condition and important characteristics of the property and structures located on the property, including significant defects in the structural integrity of Generally, properties which include a private sewage disposal system (ie, a septic system) must be inspected by a certified inspector. A copy of the certified inspector’s report (“time of transfer inspection”) must accompany any deed conveying title to property which includes a septic system. The county recorder’s office will not record a deed upon the books which is not accompanied by the required time of transfer inspection. the improvements. Certified Inspectors
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