House Study Bill 521



                                    SENATE/HOUSE FILE       
                                    BY  (PROPOSED ATTORNEY GENERAL BILL)

                                         A BILL FOR

     1 An Act relating to certain residential real estate contracts
     2    and Iowa's consumer fraud Act and making penalties
     3    applicable.
     4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 558.70, Code 2009, is amended by adding
  1  2 the following new subsection:
  1  3 NEW SUBSECTION.  5A.  A violation of this section is an
  1  4 unlawful practice pursuant to section 714.16.
  1  5                           EXPLANATION
  1  6    Code section 558.70 requires a seller of certain residential
  1  7 real estate, prior to executing a residential real estate
  1  8 installment sales contract, to deliver a written contract
  1  9 disclosure statement to the purchaser that includes, among
  1 10 other items, certain information relating to the financing
  1 11 of the real estate purchase. This bill provides that a
  1 12 violation of this section is a violation of Iowa's consumer
  1 13 fraud Act (Code section 714.16). Code section 714.16 prohibits
  1 14 unfair and deceptive trade practices in the sale, lease, or
  1 15 advertisement of a product or service and authorizes the
  1 16 attorney general to file a lawsuit on behalf of an aggrieved
  1 17 person to obtain temporary and permanent injunctive relief,
  1 18 consumer reimbursement, costs and attorney fees, and civil
  1 19 penalties up to $40,000 per violation. This amendment to
  1 20 the law supplements current law whereby a contract purchaser
  1 21 injured by a violation of Code section 558.70 may file a
  1 22 lawsuit to obtain recision of the contract, monetary damages,
  1 23 and reasonable attorney fees.
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