Iowa Real Estate Practice Exam

What happens if the Groundwater Hazard Statement is not signed at closing?

1. The deed may not be recorded

2. The transaction is void

3. Additional fines may apply

4. The closing may be postponed

The correct answer is: The deed may not be recorded

The Groundwater Hazard Statement is a crucial document in real estate transactions, particularly in certain areas where groundwater contamination is a concern. This statement aims to inform buyers about potential hazards related to groundwater. If the Groundwater Hazard Statement is not signed at closing, it can prevent the recording of the deed. Recording the deed is essential for establishing legal ownership of the property, and without the signed statement, the title may not be considered complete or acceptable for recording in the public records. The importance of this document emphasizes the responsibility of the parties involved to ensure all necessary disclosures are made. Failure to provide the signed statement does not automatically void the transaction, nor does it directly imply that additional fines will be levied. While it may lead to complications or delays, the primary legal implication is the inability to record the deed until all required documentation, including the Groundwater Hazard Statement, is properly completed and signed.