Iowa Real Estate Contract: Different Types and Key Terms to Include

Quick Facts — Real Estate Contract Lawyers

What is an Iowa Real Estate Contract?

An Iowa real estate contract is a contract executed between a buyer and seller for the purchase and sale of property. Most real estate contracts cover important terms and conditions like:

Iowa law requires that all real estate contracts contain a Seller Property Condition Disclosure, a radon disclosure, and a lead-based paint disclosure.

Common Iowa Real Estate Contracts

The type of real estate contract used in a transaction usually depends on the realtor that the buyer has hired. The two most common real estate contracts in Iowa are:

  • Southwest Iowa Association of Realtors contract . Used by Realtors who are members of the Southwest Iowa Association of Realtors.
  • FSBO Residential Real Estate Purchase Agreement. An easy to use contract for anyone selling a residential property, especially when the property is “for sale by owner” (FSBO) and the seller is not using a realtor.

4 Essential Elements of an Iowa Real Estate Contract

The four essential elements of an Iowa real estate contracts include:

  1. Identification of all parties involved in the contract
  2. Legal property description
  3. Agreed upon purchase price
  4. Closing dates and contingencies

All real estate contracts must be in writing and signed by all parties to be legally enforceable.

What Makes a Real Estate Contract Invalid in Iowa?

In Iowa, a real estate contract can be deemed invalid if it contains illegal or fraudulent provisions, if it is not signed by all parties involved, or if the contract's conditions have not been met.

Additionally, if one of the parties is not legally capable of entering into a contract, or if the contract is deemed to be unconscionable it can be considered as invalid.

Frequently Asked Questions

How do I hire a lawyer to draft a real estate contract in Iowa?

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I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.

Jane C.

Answered Jan 11, 2022

I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.

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