A purchaser of a home in the state of Iowa must appoint a reputed realtor who has a range of homes that fit the purchaser’s budget and can give an objective view of any possible problems in buying a home. If the realtor is a member of National association of Realtors or the Iowa Association of Realtors, the realtor would have sworn by a code of ethics in real estate practice which is mandatory under the by laws of these associations. Further all members have the right to use the MLS or Multi Listing Service, which is the best source of real estate information between members of the association. The MLS helps the purchaser see more properties and make better choices in the quest for a new home.

The purchaser, on choosing a home, makes an offer to the seller in the form of a purchase and sale agreement with the description of the property, stating the price offered, the down payment, the time schedule for the transaction, financing of the purchase, the title being clear and marketable and the expected date of closure. The seller must disclose in a legally mandated Property Condition Disclosure Form in the State of Iowa stating, the condition of the property and any other relevant information. The statement should contain a disclosure of any known physical and environmental defects, additions, alterations, and all other legal, encroachment disputes or physical problems with regard to the property. The disclosure should be given by the seller to the buyer and the buyer should give a written acknowledgment of receipt before the signing of the binder and is deemed to be a good faith statement. The statement is not deemed to be a warranty and the purchaser is encouraged to make an independent inspection of the property. Once the seller and the purchaser agree on terms, they will sign the agreement and make it a binding contract.

The purchaser should now engage a house inspection service and title search Company. The purchaser should engage a certified inspector to assess structural defects, pest control, lead paint usage if the house was built before 1978, radiation problems and environmental hazards. The seller’s disclosure statement is not meant to be regarded as a warranty and the buyer is expected to make independent inspections of the property.

The purchaser should hire an attorney, a real estate title company or a trust and title company to scrutinize the title of the property and to check public and court records for possible encumbrances of the title of the property. The American Land Title association has a list of title search professionals for the purchaser’s reference. Encumbrances that affect the title of property in the State of Iowa are easements and liens. Laws in the State of Iowa recognize implied easements of necessity and grant. Other encumbrances are liens on the property arising out of unpaid mortgages, deeds of trust, land sale contracts, and involuntary liens such as unpaid taxes, construction dues, and amounts due under judgments to creditors. The purchaser should buy a title insurance to pay for defending possible title claims that were not found by the title search before the date of settlement.

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