Contracts
An Iowa buyer signs a purchase agreement but then discovers the home sits on a 100-year floodplain that was not disclosed. The buyer may be able to:
ADo nothing because caveat emptor (buyer beware) applies
BRescind the contract for misrepresentation or failure to disclose a material fact✓ Correct
COnly reduce the purchase price
DOnly seek damages if they already closed
Explanation
Failure to disclose a known material fact (such as floodplain location) may constitute misrepresentation, giving the buyer grounds to rescind the contract and recover the earnest money.
Related Iowa Contracts Questions
- Iowa's seller disclosure law (Iowa Code Chapter 558A) requires sellers of residential property to:
- Specific performance as a remedy for breach of an Iowa real estate contract means:
- An Iowa lease agreement for more than one year must be:
- Rescission of an Iowa real estate contract means:
- An Iowa 'kick-out clause' in a home sale contingency gives the seller the right to:
- An Iowa installment land contract is subject to which risk for the buyer?
- Under Iowa contract law, what must an offeree do to reject an offer?
- A counteroffer in Iowa real estate has which legal effect on the original offer?
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →