Opinion ID: 1657171
Heading Depth: 3
Heading Rank: 2

Heading: Exercising Ordinary Care in Obtaining the Information

Text: Jensen argues the plain language of Iowa Code section 558A.6(1) permits a buyer of real estate to recover for damages even if the buyer is unable to prove fraud or that the seller had actual knowledge of the error, inaccuracy, or omission in the disclosure form. Jensen points to the exercise ordinary care in obtaining the information language in the statute, and argues this provision is intended to create a cause of action for negligence. Cf. Knapp v. Simmons, 345 N.W.2d 118, 124 (Iowa 1984) (equating ordinary care with reasonable care). The Sattlers argue the ordinary care language is not synonymous with a negligence standard. They contend that if we were to rule against them a parade of horribles would ensure, permitting buyers to sue sellers whenever they failed to exercise ordinary care in obtaining the information on the disclosure form. They also argue it would be absurd because no one would ever need to prove actual knowledge. In the alternative, the Sattlers claim Iowa Code section 558A.6(1) is intended to apply only to absentee owners so they will make a reasonable investigation into the property they own, not sellers like the Sattlers who had lived in the home for years and had complete knowledge of it. We must read the statute as it is written. See Gannon v. Bd. of Regents, 692 N.W.2d 31, 43 (Iowa 2005); see also Iowa R.App. P. 6.14(6)( m ) (noting it is well established that we find intent in what the legislature said, not what it might have said). The Sattlers' policy arguments are of little help in this case. The scope of the statute is a matter of public policy and therefore within the province of the legislature. PanDa Eng'g v. Eng'g & Land Surveying Examining Bd., 621 N.W.2d 196, 199 (Iowa 2001). The plain and unambiguous language of the statute clearly indicates a seller can be liable for something less than a knowingly inaccurate disclosure, i.e., if the seller fails to exercise ordinary care in obtaining the information to be put on the disclosure form. The Act places a limited affirmative duty upon sellers insofar as they must exercise ordinary care in obtaining the information. Iowa Code § 558A.6(1); see also Leonard A. Bernstein & George F. Magera, Seller Disclosure Laws Gain Popularity, 9 Loy. Consumer L. Rep. 43, 49 n. 57 (1997) (including Iowa's statute among those requiring at least some affirmative investigation). There is nothing in the statute indicating this duty is limited to absentee owners as the Sattlers suggest. For example, one question on the disclosure form is Do you know the zoning classification of the property? Iowa Admin. Code r. 193E-14.1(6). A seller must exercise ordinary care in obtaining this information whether or not the seller lives on the property. This interpretation of the statute is in harmony with the Act's insistence that [a]ll information required by this section and rules adopted by the [real estate] commission shall be disclosed in good faith. Iowa Code § 558A.3(1). Section 558A.3(1) states that good faith includes a reasonable effort ... to ascertain the information. See also id. § 558A.3(2)(b) (using failure to exercise ordinary care language after discussion of good faith duty to amend disclosure statement).