Bill Text: IA SF2253 | 2015-2016 | 86th General Assembly | Introduced

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Bill Title: A bill for an act relating to certain disclosure requirements for the transfer of real estate involving limited liability companies. (Formerly SSB 3148.)

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2016-03-10 - Referred to Commerce. S.J. 471. [SF2253 Detail]

Download: Iowa-2015-SF2253-Introduced.html

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Senate File 2253 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO SSB
                                     3148)

                                      A BILL FOR

  1 An Act relating to certain disclosure requirements for
  2    the transfer of real estate involving limited liability
  3    companies.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 489.407A, Code 2016, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  4.  a.  A transfer of an interest in
  1  4 real estate involving a limited liability company or foreign
  1  5 limited liability company as transferor or transferee, which
  1  6 transfer is exempt from payment of a real estate transfer tax
  1  7 under section 428A.2, shall include a market value disclosure
  1  8 statement prepared by the transferor. The market value
  1  9 disclosure statement shall reflect the actual or fair market
  1 10 value of the real estate transferred, as determined by an
  1 11 independent professional appraiser without regard to the amount
  1 12 of the sale price or consideration stated on the instrument of
  1 13 transfer.
  1 14    b.  The market value disclosure statement shall be included
  1 15 with the instrument of transfer and filed with the recorder of
  1 16 the county where the real estate is situated. For purposes
  1 17 of this subsection, "instrument of transfer" means the deed,
  1 18 real estate contract, lease, easement, mortgage, deed of trust,
  1 19 or any other instrument used to effect the transfer of any
  1 20 interest in real estate.
  1 21    c.  The value disclosed on a market value disclosure
  1 22 statement required in this subsection shall not be used to
  1 23 determine real estate transfer tax liability under chapter
  1 24 428A.
  1 25                           EXPLANATION
  1 26 The inclusion of this explanation does not constitute agreement with
  1 27 the explanation's substance by the members of the general assembly.
  1 28    This bill relates to real estate transfers involving limited
  1 29 liability companies.
  1 30    The bill requires a transfer of real estate involving a
  1 31 limited liability company or foreign limited liability company
  1 32 as transferor or transferee which is exempt from real estate
  1 33 transfer tax to disclose the market value of the real estate
  1 34 being transferred in a market value disclosure statement
  1 35 prepared by the transferor. The statement shall reflect the
  2  1 actual or fair market value of the real estate, as determined
  2  2 by an independent professional appraiser. The market value
  2  3 disclosure statement is to be included with the instrument of
  2  4 transfer, as defined in the bill, and filed with the county
  2  5 recorder where the real estate is located. The value disclosed
  2  6 on the disclosure statement shall not be used to determine real
  2  7 estate transfer tax liability under Code chapter 428A.
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