Iowa Real Estate Practice Exam

What must the buyer or seller NOT disclose in the Declaration of Value Statement according to Iowa law?

1. Property sale price

2. Property location

3. Disclosure of any known environmental hazards

4. Owner's name

The correct answer is: Disclosure of any known environmental hazards

In Iowa, the Declaration of Value Statement serves as a legal document that provides essential information about a property transaction. According to Iowa law, while buyers and sellers are required to disclose specific details such as the property sale price, property location, and owner's name, they are not required to disclose any known environmental hazards in the Declaration of Value Statement. The rationale behind this is to protect certain sensitive information from being required in a public document that could be accessed by anyone. Environmental hazards may involve complex legal and health issues which the seller might not be obligated to disclose upfront, especially if they're not known or if they have been resolved prior to the sale. Instead, required disclosures regarding environmental issues typically occur in the context of a separate disclosure or due diligence process. This allows for a more focused consideration of the financial and logistical aspects of the transaction without delving into potentially complicated or contentious environmental concerns that could lead to liability or disputes.