543C.4 Inspection power of commission — unlawful practices. 1. The commission may request the department of inspections, appeals, and licensing to conduct an investigation and inspection to be made of any subdivided land proposed to beoffered for sale or lease in this state pursuant to this chapter. The department of inspections,appeals, and licensing shall make a report of its findings. 2. If an inspection is to be made of subdivided land situated outside of this state and offered for sale in this state, the inspection as authorized by subsection 1 shall be madeby the department of inspections, appeals, and licensing at the expense of the subdivider.After the application required by section 543C.2 is filed and after the filing fee required bysection 543C.8 is received, the commission may decide whether an inspection pursuant tothis subsection is to be made. If the commission requires an inspection, the department ofinspections, appeals, and licensing shall so notify the subdivider and the subdivider shallremit to the department an amount equivalent to the round trip cost of travel from this stateto the location of the project, as estimated by the department and a further amount nd the subdivider shallremit to the department an amount equivalent to the round trip cost of travel from this stateto the location of the project, as estimated by the department and a further amount estimatedto be necessary to cover the additional expenses of inspection but not to exceed fifty dollars aday for each day incurred in the inspection. The costs of any subsequent inspections deemednecessary shall be paid for by the subdivider. At the completion of an inspection trip thedepartment shall furnish the subdivider a statement as to the costs of the inspection trip,and if the costs are less than the amount advanced by the subdivider to the department, theremaining balance shall be refunded to the subdivider. 3. It shall be unlawful for the subdivider to change the financial structure of any offering after the submission thereof to the commission without first notifying the commission inwriting of such intention. 4. Where improvements are to be made in connection with the sale or lease, or offering for sale or lease, of the subdivision or any unit, parcel, or lot thereon, the owner or subdividershall either furnish to the commission a performance bond executed by a surety or lease, or offering for sale or lease, of the subdivision or any unit, parcel, or lot thereon, the owner or subdividershall either furnish to the commission a performance bond executed by a surety companyauthorized to do business in the state and which has given consent to be sued in this statewith sufficient surety for the benefit and protection of purchasers of units, parcels, or lots,in such amount and subject to such terms as the commission deems necessary for theprotection of such purchasers with respect to construction of such improvements, or placein an escrow account in a depository acceptable to the commission, that portion of the sumspaid or advanced by purchasers which the commission deems necessary for the protectionof such purchasers with respect to construction of such improvements. 5. a. Where the land to be subdivided is subject to a mortgage, lien, or encumbrance securing or evidencing the payment of money, other than taxes levied or assessments made,or where the interest of the owner, the subdivider or an agent is held under option or contractof purchase or in trust, it shall be unlawful to sell any land in such subdivision unless aprovision in such mortgage, nterest of the owner, the subdivider or an agent is held under option or contractof purchase or in trust, it shall be unlawful to sell any land in such subdivision unless aprovision in such mortgage, lien, encumbrance, option, contract, or trust agreement, or aprovision in an agreement supplementary thereto, enables the vendor to convey valid title toeach parcel so sold or leased free of such mortgage, lien, encumbrance, option, contract, ortrust agreement upon completion of all payments and the performance of all the terms andconditions required to be made and performed by the vendee under the agreement of sale. b. Where the consideration price for a lot sold has been amortized to an extent that the balance due and owing thereunder equals an amount required to release such lot or lotsfrom any existing mortgage, lien, encumbrance, tax, assessment, option, contract, or trustagreement, and the initial cost for said land has not been paid for by the owner or subdivider,all moneys thereafter received by the owner or subdivider shall be segregated and kept in aseparate account as a trust which shall be applied toward the clearance of title of the landintended to be conveyed to the reafter received by the owner or subdivider shall be segregated and kept in aseparate account as a trust which shall be applied toward the clearance of title of the landintended to be conveyed to the purchaser. Certified or verified copies of documents containingsuch provisions shall be filed with the commission prior to the sale or lease, or offer of saleor lease, or advertisement for sale or lease, of any part of the subdivision. [C75, 77, 79, 81, §117A.4]88 Acts, ch 1158, §25 Sat Dec 23 01:45:58 2023 Iowa Code 2024, Section 543C.4 (20, 3) §543C.4, SALES OF SUBDIVIDED LAND OUTSIDE OF IOWA 2 C93, §543C.42012 Acts, ch 1023, §157; 2023 Acts, ch 19, §2028Subsections 1 and 2 amended Sat Dec 23 01:45:58 2023 Iowa Code 2024, Section 543C.4 (20, 3)
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