State guide

Buying or Selling a Home in Iowa: What You Need to Know

Iowa blends old-school traditions like the abstract-and-opinion title method with strong consumer protections under Iowa Code Chapter 558A property disclosure rules.

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TL;DR

Iowa blends old-school traditions like the abstract-and-opinion title method with strong consumer protections under Iowa Code Chapter 558A property disclosure rules. Most Iowa closings are handled by title companies rather than attorneys, and the Iowa Civil Rights Act stretches fair housing protections beyond the federal minimum. After the 2024 settlement, buyers in Iowa must now sign a written representation agreement spelling out their agent's pay before touring any listings.

10 things every Iowa buyer or seller should know

  • Iowa sellers must give buyers a written Property Condition Disclosure under Iowa Code Chapter 558A before or at the time the buyer signs the purchase contract. Late delivery gives the buyer a right to back out of the deal within a reasonable time — even after closing in some cases.

  • Iowa is one of the few U.S. states where title to a home is often proved by an 'abstract and attorney's opinion' rather than only title insurance. An abstract is a chronological list of every recorded document on the property, and a licensed attorney reads it and issues a written opinion confirming who legally owns the property.

  • Iowa does not require an attorney at the closing table. Most Iowa closings are run by licensed title companies, with attorney involvement more common in eastern Iowa and on more complicated transactions.

  • Iowa charges a real estate transfer tax of $1.60 per $1,000 of sale price above the first $500, and the seller is the one who normally pays it at closing. On a $250,000 home, the transfer tax works out to about $399.20.

  • Since August 17, 2024, the NAR settlement requires Iowa buyers to sign a written buyer representation agreement with their agent before touring any home listed on an MLS. The agreement must spell out exactly how the agent gets paid — a defined dollar amount or formula, not an open-ended clause.

  • The Iowa Civil Rights Act (Chapter 216) goes beyond the federal Fair Housing Act by also protecting people from housing discrimination based on sexual orientation, gender identity, and source of income such as Section 8 housing vouchers. When state and federal law overlap, the rule that gives consumers more protection is the one that applies.

  • Iowa law does not require sellers or real estate agents to tell buyers about registered sex offenders living near a home. If this matters to you, search the Iowa Sex Offender Registry yourself before making an offer — Iowa Code §558A.4(2) specifically leaves this information off the required disclosure form.

  • For homes built before 1978, federal lead-based paint rules apply in Iowa: the seller must give buyers the EPA pamphlet 'Protect Your Family From Lead in Your Home,' disclose any known lead hazards, and offer a 10-day window for a lead inspection before the buyer is locked into the contract. The 10-day window can be shortened or waived, but only in writing.

  • If an Iowa seller knows the home was ever used as a methamphetamine lab, that history is a material fact and must be disclosed on the Chapter 558A property condition form under environmental hazards. Hiding a known meth lab history can lead to rescission of the sale and personal civil liability for the seller.

  • When buying or selling a condo in Iowa, Chapter 499B (the Horizontal Property Act) requires the buyer to receive the condominium declaration, bylaws, rules, current budget, reserve fund information, and any current or pending special assessments. These documents come on top of the standard Chapter 558A property condition disclosure.

The guides

Common questions

Do I need a lawyer to buy or sell a home in Iowa?
No — Iowa does not require an attorney at closing, and most Iowa closings are handled by licensed title companies. That said, attorney involvement is more common in eastern Iowa, and having a lawyer review the contract or the attorney's opinion of title is often a smart move, especially on complicated transactions.
Who pays the real estate transfer tax in Iowa?
The seller is primarily responsible for Iowa's transfer tax under Iowa Code §428A.2, though the parties can negotiate something different in the purchase agreement. The tax is $1.60 for every $1,000 of sale price above the first $500, so a $300,000 sale would owe roughly $479.20 at closing.
Why does my Iowa purchase contract talk about an 'abstract' instead of title insurance?
Iowa is one of the few states where title is traditionally proved by a written abstract — a chronological summary of every recorded document on the property — combined with a written legal opinion from an attorney. Many Iowa buyers also purchase title insurance, especially when a lender requires it, but the abstract-and-opinion process is a normal part of Iowa home buying.
Do I have to sign a contract with my agent before I look at houses in Iowa?
Yes. Since August 17, 2024, the NAR settlement requires every buyer to sign a written buyer representation agreement before touring any home listed on an MLS. The agreement must clearly state how much your agent will be paid or how that amount is calculated — open-ended pay clauses are not allowed.
What do I have to disclose about my house when I sell it in Iowa?
Iowa Code Chapter 558A requires sellers of one-to-four unit homes to fill out a written Disclosure of Property Condition form covering structural systems, roof, plumbing, electrical, HVAC, water, environmental hazards, zoning issues, and any known material defects. The form must reach the buyer before or at the time they sign the purchase contract — delivering it late gives the buyer a right to rescind.
Does Iowa protect against housing discrimination beyond federal law?
Yes. On top of the federal Fair Housing Act, the Iowa Civil Rights Act (Chapter 216) also bans housing discrimination based on sexual orientation, gender identity, and source of income, which includes lawful housing assistance like Section 8 vouchers in many jurisdictions. When state and federal rules both apply, whichever one offers more protection controls.
How does flooding history factor into Iowa home sales?
Iowa has experienced major floods — most notably along the Cedar and Missouri rivers — and Chapter 558A treats flood history as a material condition. A seller who knows the home has flooded, has filed flood insurance claims, or sits in a FEMA Special Flood Hazard Area must disclose that on the Iowa property condition form. Buyers can also check the FEMA Flood Map Service Center to confirm a property's flood zone designation themselves.
Will my agent tell me if a registered sex offender lives nearby?
Probably not — Iowa Code §558A.4(2) specifically excludes sex offender information from the required seller disclosure form, and licensees are told to direct buyers to the Iowa Sex Offender Registry rather than answer directly. Agents cannot lie if asked, but they also cannot give a false sense of safety, so if this matters to you, check the public registry yourself before making an offer.
I'm selling a condo in Iowa — what extra paperwork do I need?
Iowa Code Chapter 499B (the Horizontal Property Act) requires you to provide the buyer with the condominium declaration, bylaws, rules and regulations, current budget, reserve fund information, and any levied or pending special assessments. These documents are required on top of the standard Chapter 558A property condition disclosure that applies to every residential sale.
After the NAR settlement, how does my agent get paid in Iowa?
Buyer-agent compensation can no longer be advertised inside MLS listing data fields in Iowa. Instead, payment is set in writing in the buyer's representation agreement and can come from a seller concession negotiated in the offer, from the buyer paying their agent directly, or from a separate amount the listing brokerage agrees to share. Iowa agents also have to set their own rates independently — coordinating compensation with competing brokerages is an antitrust problem.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.