Bill Text: IA SF6 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to contractor warranties including by providing for the transfer of contractor warranties upon the passage of legal or equitable title in the property, requiring information relating to contractor warranties in real estate disclosure statements, making penalties applicable, and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-01-17 - Subcommittee Meeting: 01/22/2019 11:00AM Senate Lobbyist Lounge. [SF6 Detail]
Download: Iowa-2019-SF6-Introduced.html
Senate
File
6
-
Introduced
SENATE
FILE
6
BY
LOFGREN
A
BILL
FOR
An
Act
relating
to
contractor
warranties
including
by
providing
1
for
the
transfer
of
contractor
warranties
upon
the
passage
2
of
legal
or
equitable
title
in
the
property,
requiring
3
information
relating
to
contractor
warranties
in
real
estate
4
disclosure
statements,
making
penalties
applicable,
and
5
including
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
558.73
Contractor
warranties
——
1
transferability.
2
1.
As
used
in
this
section,
“contractor
warranty”
means
3
an
unexpired
warranty
provided
by
a
contractor
to
an
owner
of
4
real
property
in
connection
with
the
contractor’s
performance
5
of
any
alteration,
repair,
addition,
modification,
or
6
improvement
to
the
owner’s
real
property,
whether
express
or
7
implied.
“Contractor
warranty”
,
in
relation
to
residential
8
property,
includes
any
contractor
warranty
provided
for
9
home
improvement
work,
including
but
not
limited
to
the
10
construction,
painting
or
coating,
installation,
replacement
11
or
repair
of
driveways,
sidewalks,
swimming
pools,
unattached
12
structures,
porches,
kitchens,
bathrooms,
chimneys,
fireplaces,
13
stoves,
air
conditioning
or
heating
systems,
hot
water
14
heaters,
water
treatment
systems,
electrical
wiring
or
systems,
15
plumbing
fixtures
or
systems,
doors,
windows,
roofs,
gutters,
16
downspouts,
and
siding.
17
2.
A
contractor
warranty
shall
survive
the
passing
of
legal
18
or
equitable
title
in
the
real
property
to
any
subsequent
owner
19
of
the
real
property
for
the
duration
to
which
the
warranty
is
20
unexpired.
21
Sec.
2.
Section
558A.4,
subsection
1,
Code
2019,
is
amended
22
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
0b.
The
disclosure
statement
shall
include
24
information
relating
to
unexpired
contractor
warranties
25
received
by
the
transferor,
as
provided
in
rules
which
shall
26
be
adopted
by
the
real
estate
commission
pursuant
to
section
27
543B.9.
For
purposes
of
this
paragraph,
“contractor
warranty”
28
means
the
same
as
defined
in
section
558.73.
29
Sec.
3.
APPLICABILITY.
The
section
of
this
Act
enacting
30
section
558A.4,
subsection
1,
paragraph
“0b”,
applies
to
31
transfers
of
real
property
on
or
after
the
effective
date
of
32
this
Act.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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6
the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
contractor
warranties.
2
The
bill
defines
“contractor
warranty”
to
mean
an
unexpired
3
warranty
provided
by
a
contractor
to
an
owner
of
real
property
4
in
connection
with
the
contractor’s
performance
of
any
5
alteration,
repair,
addition,
modification,
or
improvement
to
6
the
real
property,
whether
express
or
implied.
“Contractor
7
warranty”,
in
relation
to
residential
property,
includes
any
8
contractor
warranty
for
home
improvement
work,
as
described
in
9
the
bill.
10
The
bill
provides
that
a
contractor
warranty
shall
survive
11
the
passing
of
legal
or
equitable
title
in
the
real
property
to
12
any
subsequent
owner
of
the
real
property
for
the
duration
to
13
which
the
warranty
is
unexpired.
14
Current
law
requires
a
person
interested
in
transferring
15
real
property
including
at
least
one
but
not
more
than
four
16
dwelling
units
to
deliver
a
written
disclosure
statement
to
17
a
person
interested
in
being
transferred
the
real
property,
18
including
information
relating
to
the
condition
and
important
19
characteristics
of
the
property.
The
bill
requires
that
the
20
written
disclosure
statement
also
include
information
relating
21
to
unexpired
contractor
warranties
received
by
the
transferor,
22
as
provided
in
rules
adopted
by
the
real
estate
commission.
23
Pursuant
to
Code
section
558A.6,
a
transferor
of
real
24
property
who
violates
the
disclosure
statement
requirements
25
shall
be
liable
for
the
amount
of
actual
damages
suffered
by
26
the
transferee,
unless
the
transferor
had
no
actual
knowledge
27
of
the
inaccuracy
or
exercised
ordinary
care
in
obtaining
28
the
information.
In
addition,
Code
section
714.8
provides
29
that
a
contract
seller
who
intentionally
provides
inaccurate
30
information
is
guilty
of
a
fraudulent
practice.
31
The
bill
specifies
that
the
section
of
the
bill
requiring
32
real
estate
disclosure
statements
to
include
information
33
relating
to
contractor
warranties
applies
to
transfers
of
real
34
property
on
or
after
the
effective
date
of
the
bill.
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