Why you should pay for a lot line survey.

What is a lot line survey? A lot line survey is a service that exactly measures the location of the lot-lines for a piece of land. The lot lines are the boundaries where you land ends and your neighbor’s begins. Knowing where your lot ends and theirs begins is just a part of being a good neighbor.

In the city or suburbs a surveyor can cost somewhere between $400 and $1,000; but like everything in life the cost is negotiable, so shop around. For that price they will stake out the lot lines and corners of your property with wood stakes and metal survey pins. Always ask for the surveyor to place the survey pins in each corner and then add cement around the top of each pin. You can buy the cement at any hardware store and mix it on a small piece of plywood.

You might wonder, why spend the money?

Because it can save you a lot of money knowing where your ownership begins and ends. 

What can possibly go wrong?

I will give you three examples of how not having a survey can get your embroiled with the legal system and lawyers. And remember where there are lawyers there are legal fees and an uncertain outcome. 

Example 1: I bought a cabin in Northern Minnesota. My neighbors and I all got along wonderfully. We fished and barbecued fish and steaks together. We still today have a great relationship, but when I went to sell my cabin the buyers conditioned the sale on a lot line survey. The survey showed my neighbor’s garage was over the lot line. The buyers wanted it removed and the neighbor balked, but I had another idea, which the offending neighbor wasn't too happy about, but accepted to avoid having to tear down a four stall garage and boat house. We moved the lot line at the shoreline by ten feet and then wiggled the lot line around his offending garage. That way my buyer got ten feet more of shoreline and the neighbor got to keep his garage. 

RESULT: The offending garage owner had to pay for the legal work to make it all legal and he had to give up some land.

Example 2: My home is in a nice neighborhood. My second wife wanted to build a swimming pool. I ordered a survey and discovered the neighbor to our south had his swimming pool fence, landscaping and drainage slurry over the lot line and into my yard. The litigation has been ongoing for over ten years. There is no end in sight. The offending owner sold his home to a new owner and they understand less than the previous owners did. 

RESULT: No resolution.

Example 3: This story is an example of even with a survey, mistakes can be made, but at least you have someone to sue when it does. My son who attends Creighton School of Law sent me this story out of Florida. These folks in Missouri wanted to build their dream home in Florida. They hired a builder who built the 5,300 square foot beach house, but on the wrong lot. Ouch! You surveyors best get out your checkbooks. 

RESULT: No resolution at the time the story was reported in 2014.

My advice before buying or building, get the survey and then read it.

Who is Steve Lombardi? Steve Lombardi is a lawyer and a real estate broker in Iowa. He represents a limited number of buyers for the sheer pleasure of helping people find just the right home for a good price. His business is not about quantity, but quality. His clients stay involved in the search using the Internet to scout out just the right home and at a fair price. He is a lawyer and a real estate broker and so you get the full package for half what it would otherwise cost you. If you would like his help in finding the right home and want to do some of your own research, then contact him. If he isn't helping someone already then you are in luck. 

A recent case involving rescission of the sale of a 200-year-old house based on a claim by buyers of fraudulent inducement by the seller. 

 Justia Opinion Summary

In 2005, Donald Devine and his wife Nancy Devine acquired ownership of Rock Hall, a 200-year-old house. In 2007, Charles Buki and Kimberly Marsho signed a contract agreeing to purchase Rock Hall. Later that year, Buki and Marsho (together, Plaintiffs) brought suit against Donald and Nancy (together Defendants), alleging that Defendants fraudulently induced them to enter into the real estate contract and to close on Rock Hall by misrepresenting and concealing the true condition of the house. The trial court concluded that Nancy had committed no wrong but nonetheless granted rescission of the real estate contract against both Donald and Nancy, concluding that Nancy should be “responsible jointly and severally with her husband for the payment of the purchase price” of Rock Hall. The Supreme Court reversed, holding that because there was no evidence of any wrongdoing on the part of Nancy, the trial court had no basis for awarding any remedy, including rescission, against Nancy.

The evidence failed to show the wife took part in any of the fraudulent acts as alleged. The trial court seemed bothered by what was described in the opinion as "reaped the benefit" of the sale of Rock Hall and allowed rescission. But the higher court overturned that ruling finding no basis for awarding any remedy against the innocent wife. 

Reversed and remanded for further proceedings consistent with the opinion. 

Devine v Buki, Record No. 140305, Justice Powell for the Circuit Court of Northumberland County, Virginia. 

An interesting legal claim was asserted under the Virginia Consumer Protection Act ("VCPA"), Code Section 59.1-196, et seq. 

 Justia Opinion Summary

In 2005, Donald Devine and his wife Nancy Devine acquired ownership of Rock Hall, a 200-year-old house. In 2007, Charles Buki and Kimberly Marsho signed a contract agreeing to purchase Rock Hall. Later that year, Buki and Marsho (together, Plaintiffs) brought suit against Donald and Nancy (together Defendants), alleging that Defendants fraudulently induced them to enter into the real estate contract and to close on Rock Hall by misrepresenting and concealing the true condition of the house. The trial court concluded that Plaintiffs were entitled to rescission of the contract where David, but not Nancy, committed fraud. The court awarded consequential damages and attorney’s fees. The Supreme Court affirmed in part and reversed in part, holding that the trial court (1) did not err in granting rescission of the real estate contract based on Donald’s fraudulent concealment of the true state of the house and did not err in awarding attorney’s fees; (2) did not abuse its discretion in refusing to award punitive damages; and (3) erred in awarding consequential damages and prejudgment interest.

These are companion cases with the likely citation of, Devine, Jr. v Buki, et al., __ Va. __ S.E.2d __ (2015)

When you buy a home can you safely assume the bike path is permanent?

There is an interesting United States Supreme Court decision, Marvin Brandt Revocable Trust v. U.S., No. 12-1173 that was recently decided. One family objected to the local government’s request for the property to be deeded over for a bike path. There are several places on the Internet where you can read a synopsis of the case, but let me provide you with the bottom line. The government when it gave the use of the land to the railroads gave only an easement, a legal right to simply use the land. But like all easements if you terminate the use, the land reverts back to the title holder. In this instance it was a rancher in Wyoming who owned land on both sides and under the railroad tracks. His objection was upheld and in the end he gets the land where the railroad tracks were previously located. 

Why does the bike path suddenly end? 

Oops! Someone in government goofed or got a bit too greedy. You can't have what you do not own.

Should you be concerned about a bike path running along the home's lot you want to purchase? 

From this decision I don’t think you can assume too much about your bike path. In this case obviously this one owner holds the cards to whether or not the bath path can suddenly come to a dead end at their property line. Can that happen to any bike path? Maybe or maybe not it all depends on whether anyone objected to signing away their rights after the railroad pulled up its tracks. 

So what will happen to the bike path in Wyoming? 

There is no word yet from the Wyoming land holder about whether they will grant an easement to the entity in charge of the bike path; they may or they may not.

What is important to consider when buying a home, is whether there are any objections or lawsuits over the bike path that use to be a railroad line. If it wasn't a rail line you're probably safe. If it was, then you need to research any pending claims. 

Where can I read about this issue? 

• Link to this 27 page opinion.
• Court sides with landowner over abandoned railroad right of way, Washington Post
• Supreme Court sides with landowner in dispute over property claimed for public trail, US News via the AP
• Supreme Court tells government to take a hike -- but not on private property, The Business Journals
• Court ruling in land dispute could threaten bike trails, USA Today
• Great Northern R. Co. v. United States, 315 U. S. 262 (62 S.Ct. 529, 86 L.Ed. 836)

For help with your bike path case call the Lombardi Law Firm.

As Buyers What Are Your Duties Regarding The Iowa Residential Real Estate Disclosure Form

As a potential buyer of someone else’s home you have an obligation to protect yourself by doing certain things before making an offer to purchase. Iowa law goes only so far in protecting you as the buyer. The law cannot protect you from yourself. If you are lazy, don’t want to think or don’t care to investigate the real estate you buy then blame no one except yourself if you buy a lemon. As a buyer you do have certain duties that laziness will not excuse. 

Get used to the idea it may cost a little money now to protect you from having to spend a great deal more following the closing. It is better to spend a few hundred to investigate before closing, than to have to spend several thousand after the closing because the furnace didn’t work as you had anticipated. A leaky roof, a bad AC unit, clogged sinks or a poorly insulated attic can cost a new buyer considerably.

As the buyer what are your initial duties?

Buyers’ Duty

1. Get a copy of the disclosure.
2. Read the disclosure.
3. Ask questions of your agent.
4. If the agent won’t provide answers speak directly to the sellers.
5. If neither answers your questions, walk away from the deal.
6. Ask in writing for clarification.
7. If the disclosures are anything other than a “yes” or a “no”, then ask for a new disclosure form properly filled out.
8. If that is not provided, walk from the deal.
9. If you don’t like the answers you are getting or the answers are so vague they provide no useful information ask more questions.
10. If the answers still don’t answer your questions, walk from the deal.

HOW TO CONTACT US

The Lombardi Law Firm

5000 Westown Parkway, Suite 440

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Write to Steve or Katrina

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Iowa Residential Real Estate: What is due diligence?

Due diligence is work and requires planning, thinking and execution, which is why it hardly ever gets done right. If you are lazy and ignore the due diligence inspections you can make a very expensive mistake.

Most calls I receive from disgruntled buyers can be explained by their lack of performing due diligence. During the home buying process they notice defects, but then quickly try to explain it away to avoid additional work. This is buying on a whim and with your home costing you thirty years of mortgage payments I’d think it deserves more attention to detail.

So what is due diligence? Formally it is a set period of time with a start and end date during which you duty as the potential buyer is to investigate by examining the physical aspects of the property you are attempting to buy.

Due diligence can last several weeks and how long it lasts is never set in stone. As the buyer you can set a long or a short due diligence period; the longer the better from the buyer’s standpoint. If the seller wants a real short due diligence period it usually means there is a hidden defect or defects the seller does not want you to discover.

As the buyers, you should set the due diligence for at least two weeks and no less. Then during those two weeks you need to spend some money on experts, although there are ways around having to pay for the serviceman to examine the systems.

During the due diligence period consider all the systems of the house and have one or more serviceman who are qualified, ready, willing and able to evaluate the quality of the systems in place. As an example the furnace and air conditioning system needs to be evaluated. You will need a heating and air conditioning company to enter the home (make arrangements) for the purpose of opening up the furnace door and examining the internal parts to make sure you don’t have broken pieces (heat exchanger is one example).

Who pays when the due diligence inspections were done or weren’t done right?

Normally the buyer does unless they can show the sellers hid a known defect. That is an expensive venture and normally the costs of litigation exceed the cost of repairs. When the cost of litigation exceeds the repair costs, litigation is not an option for the buyers. Litigation is not always the best course. There are many situations where getting out your checkbook is the best course of action.

Diligence Means To Act With Diligence

So act purposefully and meaningful during the due diligence period and make a list of all the systems within the house. Identify vendors who can evaluate the systems in the home and then schedule the appointments. Here is a list of what in my opinion you need to do.

DUE DILIGENCE ACTION LIST

1. Take the due diligence period seriously.
2. Stay organized about how to conduct the due diligence.
3. Spend money to get the right service experts in to evaluate the home’s systems.
4. Attend all inspections with your experts.
5. Ask the experts questions.
6. Actively participate in the inspections.
7. Read their reports several times and make sure you understand.
8. Know the limitations of those reports.
9. Buy the home warranty covering all systems.
10. Make the sellers pay for the home warranty if the disclosure form isn’t clear in any way.

This is Steve Lombardi, attorney and real estate broker coming to you from Iowa.

HOW TO CONTACT US

The Lombardi Law Firm

5000 Westown Parkway, Suite 440

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Write to Steve or Katrina

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Can I get sued if my agent says to simply mark ‘unknown” on the disclosure form?

Yes you can get sued for failing to make a disclosure if a defect in the property relates to that category. Here is a reason why this is likely. Let's say you bought the house and the furnace proved to be defective. The owners, not being HVAC professions thought they could get away with checking off "unknown" on the disclosure statement. After all they aren't qualified to know if the heat exchanger is cracked. So far sounds good doesn't it. 

But let's dig deeper. The owners knew the furnace was acting funny, it wasn't producing the right amount of heat and their heating bills were increasing. There were other signs but we don't need to go into all of them. 

What the owners did need to disclose was their knowledge about the furnace not working right. And their knowledge is not unknown, in fact they know enough that any reasonable buyer would suspect more investigation was necessary. An HVAC inspection for less than $100 would have discovered the cracked heat exchanger and the owners would have been required to spend the $1,000 to repair it. 

So what we have is a seller failing to disclose their knowledge about the furnace and that is a violation of Iowa law. 

As a lawyer, my advice to the buyers would be so to sue the sellers for failing to make any disclosure as to their knowledge of the defective furnace, water heater, water softener, roof leaking, windows leaking or any other defect in the home’s systems. 

I know what the sellers will say when the letter arrives from the buyers' lawyer asking for reimbursement of the HVAC repair bill. "But my real estate agent said I can mark ‘unknown’ on the disclosure form."

Whose advice should you follow? It doesn't matter what the real estate agent told you to do when filling out the disclosure form. That is legal advice and to my knowledge there are very few real estate agents and brokers in Iowa who are also licensed attorneys. Real estate agents are not permitted to give you legal advice. This is legal advice. That and they will probably deny ever telling you how to mark the disclosure form.

Make sense? If not call us for a consultation.

You can buy, but not sell a house “As-Is”.

Buyers have a duty to disclose known defects. Sellers have no duty to read or to pay attention to what is being disclosed. So, you can buy a home on an ‘as-is’ basis, but as a seller you have to fill out a written disclosure form and deliver it to any buyer making an offer. If you don't then you're in violation of the law.

Make sense? If not call us for a consultation.

Buying A Home: Hey save all those purchase documents!

If you are going to buy residential real estate then you need to become as familiar with the process as you can. You also need to get organized and that means learning how to create a paper file that will support your side of the deal if after the deal is done it becomes undone. Paper is what will help protect you in the event you bought a house of cards or the proverbial money pit. So let’s discuss how to get organized.

Whenever you purchase a home you should start off organized and even after the sale is indeed done, stay organized by saving all the sale-purchase documents in a file folder.

Figure out which of you is better at organization and make it their job to keep the documents complete and available. That way there is no discussion later on about thinking the other was saving "those documents". Here are the tools you need.

1. Create a file folder with the address or name of your neighborhood.
2. The file folder should have multiple sections so you can divide the contents.
3. One section should be for what your agent gave you and another for what the sellers handed out.
4. Using a 3-ring binder, save all the owner manuals for the appliances and systems in the house.
5. In the home owner’s folder save all those purchase documents you were given, and especially the Iowa Residential Real Estate Disclosure Form.
6. Save the home inspection.
7. Save the real estate agent's business cards.
8. Pick up any business cards left on the counter, because they could later on become witnesses in your case.
9. Before closing make sure all the documents were signed and dated. Don't leave the closing without signed documents.
10. Keep a copy of the offer and acceptance forms that are exchanged.
11. Keep a copy of the sale’s brochure and materials.
12. At the closing require not just keys but owner manuals and if available copies of the purchase invoices for the various appliances.
13. At the closing require a list of vendors who have regularly serviced the real estate. (The plumber, pool company, heating & cooling company, roofer, siding, gutters, lawn irrigation company, electrician, etc.) You want to know who knows your home’s systems and how they work.

So get organized and stay organized. 

HOW TO CONTACT US

The Lombardi Law Firm

5000 Westown Parkway, Suite 440

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Write to Steve or Katrina

Email: sdlombardi@aol.com  or katrina.schaefer8@gmail.com

How do I sell my house “as-is”?

Well first you read my blog post titled, As a seller is it legal to sell your house ‘As-is’?

Do you want to know what my answer is to that question? My answer is yes and no. You can sell your house ‘as-is’ so long as you make all the proper disclosures. In other words you can sell as is but you just have to tell the buyers what’s wrong with your house. They can assume all those nasty defect costs but you can’t sell without first letting them know via the disclosure statement what is wrong with it.

The problem is with how people think about their duties when they try to sell a house ‘as-is’. As-is doesn’t mean that as the seller you have absolutely no duties. It simply means the buyers buy without regard to defects. But that doesn’t change the sellers’ duty under the Iowa law. Seller still must fill out the disclosure form in an honest manner.

Make sense? It should. If it doesn’t call Katrina or I. We are both lawyers and I’m also a licensed real estate broker.

See Seller Disclosure Statements, Steve Lombardi

I’ll carry this on our two blogs, the Iowa Real Estate Lawyer on Blogspot and the Lombardi Law Firm blog titled The Verdict. 

As a seller is it legal to sell your house "As-is"?

This will be posted on the Lombardi Law Firm's website and I’m posting it here as well.

I was at a luncheon with central Iowa’s commercial real estate agents this past Wednesday and the subject of an ongoing lawsuit, residential real estate, came up. Bankers like to attend these luncheons because owners, buyers, investors and developers usually mean lending can’t be far behind. Seated at my table were some very experienced bankers from Des Moines. I consider them to be seasoned in the banking and lending business. Any banker that has made it through the crisis will be around for the long haul. But this day over the entree we discussed an ongoing lawsuit about a buyer suing over the sellers not disclosing defects in the home. The problem for these bankers was a critical misunderstanding about Iowa’s Residential Sellers’ Disclosure law.

It seems the sellers tried to sell their home “as-is”. The bankers are stymied about how the buyer can sue the sellers for defects when the buyer bought the property as-is. Everyone at the table wanted to blame the buyer for being too anxious to buy the home and the lawyers for making something out of nothing. Well, not everyone seated at our table thought this. Katrina Schaefer, Barbara (my wife) and I just smiled at those attempting to blame the sue-happy lawyers. I was quick to point out they were all incorrect in assuming that in Iowa anyone is ever allowed to sell a home as-is. There are a few exceptions, but this is certainly not one of them. You can’t do it so why even try to do it.

I start off engaging the bankers by making one simple statement that seemed to get everyone’s attention: In Iowa caveat emptor is dead.

They looked at me with bewilderment written all over their faces. Which is what I imagine is written all over your face too. This is a Latin phrase they teach in law school. 

What’s that caveat emptor stuff anyway?

Caveat emptor is a Latin phrase meaning “let the buyer beware.”

It was, but it’s no longer the law of the land in Iowa. In Iowa the legislature passed a law, requiring sellers of residential real estate to disclose material facts about their homes to potential buyers. And if you don’t you are setting yourself up to be sued – big time.

You have to make the disclosures in writing and they had better be accurate. Because if they are not accurate and the buyers experience problems, then you the seller will be required to pay to repair or to replace because you probably failed to disclose material facts about the home. While it's not a warranty, it is a duty to disclose material defects in the property for which there is a cost if you do not disclose. 

This whole as-is business is passé. You can’t sell residential real estate in Iowa without making material disclosures; PERIOD. So get that notion of caveat emptor out of your head because it will get you in trouble financially. 

And so if anyone is telling you to write ‘as-is’ into the deal don’t.

There is a case right on point where two real estate agent owners crossed out the disclosure questions with a nice big “X” and wrote on the form, ‘Seller never lived in the property’. But guess what that didn’t insulate them from being successfully sued. You can’t change the law just because you don’t like it or think you are somehow exempt. You aren’t and you can’t, so don’t try it.

You see, even professionals don’t understand what the law requires. What is required is a complete and truthful disclosure about anything material to the decision to buy.

Katrina and I have our own proprietary work-sheet and are trying to provide a valuable service to sellers and to buyers. Keep this in mind, if the sellers don’t hire us to assist them the buyers sure can after the sale when this or that doesn’t work or leaks or grows mold or whatever the defect might be.

You can read all about Iowa’s Residential Sellers’ Disclosure law at the Iowa Real Estate Lawyer, blog that Katrina and I write. You can also pick up some news from the Lombardi Law Firm website under real estate.

And if you have legal questions about the sale of your home, don’t hesitate to call Katrina or me to find out if we can help you. As many of you already know I am both a lawyer and a licensed real estate broker in Iowa and enjoy helping people solve problems. So unlike most real estate agents I can give legal advice. So call us at 515-222-1110 or send either of us an email: sdlombardi@aol.com or katrina.schaefer8@gmail.com. 

What went wrong in the Yeboah case?

Nepal, Khumbu Region of the Himalayas

The decision by the Court of Appeals of Iowa in Yeboah vs. Emans most certainly left the West Des Moines, Iowa homeowner-sellers dismayed. Everyone on the sell-side of that deal had to be scratching their heads and left wondering what went wrong. The sellers were left paying the buyers an additional $17,280.92 and then the Court remanded the case back to the Iowa District Court for an award of appellate fees. Obviously the amount the sellers would have to pay was higher than $18,000 and may have easily exceeded $20,000. Unfortunately for the sellers it’s doubtful any insurance policy covered this award; that money more than likely comes out of their pocket and in many instances will reduce the home equity they have to use to buy another home. In the end everyone involved had to ask how this could have occurred. I would guess even the buyers were left scratching their heads.

On that claim, the court found the sellers “had actual knowledge of the existence of a problem involving a leak in the roof of the sunroom” and failed to disclose the leak in their disclosure statement. [Page 3]

The buyers had to be wondering why they were paid for the leaky roof but not the leaky windows. Obviously this blog isn't the place to hash out all the problems with the disclosures so I won’t, but let’s discuss our solution for Iowa sellers.

Like all appellate court decisions we have little to go on except what is written in the decision. A court decision can’t fully describe all the facts; the court provides only those facts relevant to its decision. So I hesitate to extrapolate much from what is stated in the statement of facts, but with just those facts homeowners, sellers, buyers, agents and brokers must try and figure out what did go wrong.

A careful reading of the Court’s decision indicates the Iowa Supreme Court is critical not just of how the form is being used, but of the form itself. I'm critical as well and can easily understand the Court discussing the form in its opinion.

The form also included a list of questions and check-box answers under the heading, “Appliances/Systems/Services.” This portion of the form was designated “not mandatory” and only “for the convenience of Buyer/Seller.” Among the questions was a request for information about the condition of the windows. The sellers checked the box indicating that the windows were “[w]orking.” [Page 1]

Listen folks, the Iowa Supreme Court does not find this form as being adequate. Now I realize most agents aren't attorneys, I get that, but when your clients are being sued, a bell ought to go off in your head that something is wrong. That form everyone is using is terribly misleading.

Who provided that form? And who pray-tell wrote it?

Not even a home inspection uncovered the problems the subject of the alleged defects. That’s bothersome because the sellers and buyers had to be wondering why they were paying so much to so many professionals and getting so little in return. After all what are we paying for? It seems like the inspection amounted to telling them the obvious and then concluding with telling them what they could already see.

Six to eight weeks after closing, the buyers noticed wetness in the northeast corner of the sunroom and wetness in the drywall on the ceiling. Yeboah tore off a deck above the sunroom and found that one wall was soft. The buyers hired contractors to repair the damage. The total cost was $17,280.92. [Page 3]

Katrina, who is a lawyer in our office, summed up the allegations as a failure to fully disclose a leaky roof and damaged windows. This is one of the cases that made me aware of the need homeowners have as sellers for a lawyer to review and to assist them in how to properly fill out the disclosure forms. It made me re-examine the disclosure forms being used and to suggest additional disclosures along with how to position what needs to be disclosed.

The buyers also found that four of the windows in the home would not open. They obtained a replacement cost estimate of $4365. [Page 3]

In this case it’s too easy to simply blame the sellers for failing to disclose a known problem, because they did make disclosures of what they thought was a problem and they took corrective action on what was a leaky roof. I don’t blame the sellers for the disclosure statement but frankly I have to wonder why they didn’t seek legal advice to protect themselves from future claims. Were they told to seek legal advice? Were they told by a person or just in the fine print of one of the half dozen documents they were asked to sign? Take a step back and think for a moment about how this deal went wrong and how it could have been done differently to everyone’s satisfaction – do that and maybe they get paid a little less for the house, maybe they have some additional repair costs and maybe everyone walks away happy with their real estate agents and brokers. The way it worked out no one was happy and who knows what happened to the sellers and how they came up with the money to satisfy the judgment.

Here is what the Court stated about Iowa law: Iowa Code section 558A.2(1) requires a person interested in transferring real property to deliver “a written disclosure statement to a person interested in being transferred the real property.” This disclosure is to include “information relating to the condition and important characteristics of the property . . . including significant defects in the structural integrity of the structure.” Iowa Code § 558A.4(1). The seller is not liable “for the error, inaccuracy, or omission in information required in a disclosure statement, unless that person has actual knowledge of the inaccuracy, or fails to exercise ordinary care in obtaining the information.” Id. § 558A.6(1). A person who violates this statutory provision is ordinarily liable for the actual damages that the buyer suffers. Id. § 558A.6.

From my point of view the blame is easily spread around to all involved and had a more complete disclosure been made the issue would have been remedied for a lot less than what the sellers ultimately paid. And if you ask them today I'll venture to guess they would rather this deal had fallen through then to choose the way it ended after the court case.

This is a difficult part of selling your home, because no home is perfect, not even new homes. We read this decision and as a lawyer-broker I made the decision to restructure how we would do this portion of the deal. We offer this service across the entire state of Iowa, all 99 counties. We can do it via the Internet, phone and/or in-person. Contact Katrina and I if you would like assistance in filling out your disclosure statement.

Call us, contact the Lombardi Law Firm and ask for either Steve Lombardi or Katrina Schaefer. And if you are a buyer with a home disclosure problem we will represent you so long as we do not have a conflict of interest with having reviewed for the sellers.

HOW TO CONTACT US

The Lombardi Law Firm

5000 Westown Parkway, Suite 440

West Des Moines, Iowa 50266

Telephone: 515-222-1110

Fax: 515-222-0718

Write to Steve or Katrina

Email: sdlombardi@aol.com or katrina.schaefer8@gmail.com

Basements Are Often a Source of Concern in Older Iowa Homes

It is too often the case that homeowners focus on the main level of a house when looking to purchase real estate.  Understandably, the main level and second level are where most "living" occurs in a home.  Some people care little or nothing about the basement, except as a space to store items.  However, basement foundations, walls, and pipes are essential to the integrity of the house as a whole and are easily found in disrepair.  Homeowners sometimes neglect the basement condition or forget to care for it as they do the remainder of the house.  This leads to foundation cracks, leaks, and potentially severe water damage.  Older homes are more prone to these areas of disrepair, as materials used several decades ago either were not well-made or are deteriorating after many years of use.

When looking at real estate during your house hunt, it is imperative to closely examine the condition of the home's basement and foundation.  In many cases, water leaks have been repaired or damage has been covered up.  This does not mean the problem is "fixed" - you must be aware of what the problem was and what the potential issues may be in the future.  Even newer homes have the potential for water leakage and damage, especially in low-lying areas around Iowa that are subject to floods and heavy waterfall.  Check your property and the surrounding area for water drainage issues before you purchase your home.

I Thought They Said This Worked?

You are a home buyer. You bought the house, started turning it into your home and to celebrate invited over some guests for a nice dip in the hot tub. While you are fixing guacamole, your husband is turning on the hot tub. In less than one hour everyone will be here dressed in their swimming attire. Only problem is your husband just announced the hot tub doesn't work. 

On Monday the repairman shows only to hand you a bill for $1,700.00 to fix the internal parts that had been poorly maintained. You've owned the home for less than two weeks. 

What do you do?

Do you:

1. Pay the bill?
2. Call your agent?
3. Reread the sellers’ disclosure statement?
4. Send the disclosure statement over to your agent to present to the sellers?
5. Start a file for the other problems that may soon show up?

Actually you do all of the above and if no one wants to get out their checkbook, you end up calling a lawyer. That sellers’ disclosure statement is key to deciding who will pay the hot tub repair invoice. So pay attention to what is said in the Iowa Residential Real Estate Disclosure Form. And do so before you purchase a new home.