Text: HSB520            Text: HSB522


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: TLSB 5402DP (5) 83 rh/nh 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. LSB 5402DP (5) 83 rh/nh
Text: HSB520            Text: HSB522