Contracts

Under Iowa law, which of the following would be considered a material fact that must be disclosed in a residential sale?

AThe seller's asking price on a prior failed sale 3 years ago
BA known history of flooding in the basement✓ Correct
CThe neighbors' political affiliations
DThe seller's personal moving schedule

Explanation

A known history of basement flooding is a material fact affecting the property's condition, value, and the buyer's decision. Iowa Code Chapter 558A and agency law require disclosure of known material defects. Personal, demographic, and unrelated seller information are not material facts.

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