2009 Iowa Code
Title 8 - Transportation
Subtitle 2 - Vehicles
CHAPTER 321 - MOTOR VEHICLES AND LAW OF THE ROAD
321.69 - DAMAGE DISCLOSURE STATEMENT.

        321.69  DAMAGE DISCLOSURE STATEMENT.
         1.  A certificate of title shall not be issued for a motor vehicle
      unless a damage disclosure statement has been made by the transferor
      of the vehicle and is furnished with the application for certificate
      of title.  A damage disclosure statement shall be provided by the
      transferor to the transferee in a transfer of ownership of a motor
      vehicle.  The new certificate of title and registration receipt shall
      state on the face whether a prior owner had disclosed that the
      vehicle was damaged to the extent that it was a wrecked or salvage
      vehicle as defined in section 321.52, subsection 4, paragraph
      "d".
         2.  The damage disclosure statement required by this section
      shall, at a minimum, state whether the transferor knows if the
      vehicle was titled as a salvage, rebuilt, or flood vehicle in this or
      any other state prior to the transferor's ownership of the vehicle
      and, if not, whether the transferor knows if the vehicle was damaged
      to the extent that it was a wrecked or salvage vehicle as defined in
      section 321.52, subsection 4, paragraph "d", during or prior to
      the transferor's ownership of the vehicle.
         3.  The damage disclosure statement shall be provided by the
      transferor to the transferee at or before the time of sale.  If the
      transferor is not a resident of this state or if the transferee
      acquired the vehicle by operation of law as provided in section
      321.47, the transferee shall not be required to submit a damage
      disclosure statement from the transferor with the transferee's
      application for title unless the state of the transferor's residence
      requires a damage disclosure statement.  However, the transferee
      shall submit a damage disclosure statement with the transferee's
      application for title indicating whether a salvage, rebuilt, or flood
      title had ever existed for the vehicle, and if not, whether the
      vehicle was damaged to the extent that it was a wrecked or salvage
      vehicle as defined in section 321.52, subsection 4, paragraph
      "d", during or prior to the transferor's ownership of the
      vehicle, and the year, make, and vehicle identification number of the
      motor vehicle.  The transferee shall not be required to indicate
      whether the vehicle was damaged to the extent that it was a wrecked
      or salvage vehicle as defined in section 321.52, subsection 4,
      paragraph "d", under this subsection if the transferor's
      certificate of title is from another state and if it indicates that
      the vehicle is salvaged and not rebuilt or is another state's salvage
      certificate of title.
         4.  A lessee who has executed a lease as defined in section 321F.1
      shall provide a damage disclosure statement to the lessor at the
      termination of the lease.  The damage disclosure statement shall be
      made on a separate disclosure document and shall state whether the
      vehicle was damaged during the term of the lease to the extent that
      it was a wrecked or salvage vehicle as defined in section 321.52,
      subsection 4, paragraph "d".  The lessee's damage disclosure
      statement shall not be submitted with the application for title, but
      the lessor shall retain the lessee's damage disclosure statement for
      five years following the date of the statement.
         5.  The department shall retain each damage disclosure statement
      received and copies shall be available to the public and the attorney
      general upon request.
         6.  Authorized vehicle recyclers licensed under chapter 321H and
      motor vehicle dealers licensed under chapter 322 shall maintain
      copies of all damage disclosure statements where the recycler or
      dealer is either the transferor or the transferee for five years
      following the date of the statement.  The copies shall be made
      available to the department or the attorney general upon request.
         7.  The damage disclosure statements shall be made on the back of
      the certificate of title if the title is available to the transferor
      at the time of sale.  If the title is not available at the time of
      sale or if the face of the transferor's Iowa title contains no
      indication that the vehicle was previously salvaged or titled as a
      salvage, rebuilt, or flood vehicle and the transferor knows or
      reasonably should know that the vehicle was previously salvaged or
      titled as a salvage, rebuilt, or flood vehicle in another state, the
      transferor shall make the disclosure on a separate disclosure
      document.  The damage disclosure statement forms shall be as approved
      by the department.  The treasurer shall not accept a damage
      disclosure statement and issue a title unless the back of the title
      or separate disclosure document has been fully completed and signed
      and dated by the transferee and the transferor, if applicable.  If a
      separate damage disclosure document from a prior owner is required to
      be furnished with the application for title, the transferor shall
      provide a copy of the separate damage disclosure document to the
      transferee at or before the time of sale.
         In addition to the information required in subsection 2, a
      separate disclosure document shall state whether the vehicle's
      certificate of title indicates the existence of damage prior to the
      period of the transferor's ownership of the vehicle and whether the
      vehicle was titled as a salvage, rebuilt, or flood vehicle during the
      period of the transferor's ownership of the vehicle.
         8.  A person, authorized vehicle recycler licensed under chapter
      321H, or motor vehicle dealer licensed under chapter 322 shall not be
      liable to a subsequent owner, driver, or passenger of a vehicle
      because a prior owner or lessee gave a false or inaccurate damage
      disclosure statement or failed to disclose that the vehicle had
      previously been damaged and repaired or had been titled on a salvage,
      rebuilt, or flood certificate of title unless the person, recycler,
      or dealer knew or reasonably should have known that the prior owner
      or lessee gave a false or inaccurate damage disclosure statement or
      failed to disclose that the vehicle had been damaged and repaired or
      had been titled on a salvage, rebuilt, or flood certificate of title.

         9.  Except for subsections 10 and 11, this section does not apply
      to motor trucks and truck tractors with a gross vehicle weight rating
      of sixteen thousand pounds or more, vehicles more than seven model
      years old, motorcycles, motorized bicycles, and special mobile
      equipment.  This section does apply to motor homes.  The requirement
      in subsection 1 that the new certificate of title and registration
      receipt shall state on the face whether a prior owner had disclosed
      that the vehicle was damaged to the extent that it was a wrecked or
      salvage vehicle as defined in section 321.52, subsection 4, paragraph
      "d", does not apply to a vehicle with a certificate of title
      bearing a designation that the vehicle was previously titled on a
      salvage certificate of title pursuant to section 321.52, subsection
      4, paragraph "b", or to a vehicle with a certificate of title
      bearing a "REBUILT" or "SALVAGE" designation pursuant to section
      321.24, subsection 4 or 5.  Except for subsections 10 and 11, this
      section does not apply to new motor vehicles with a true mileage, as
      defined in section 321.71, of one thousand miles or less, unless such
      vehicle has incurred damage as described in subsection 2.
         10.  A person shall not sell, lease, or trade a motor vehicle if
      the person knows or reasonably should know that the motor vehicle
      contains a nonoperative airbag that is part of an inflatable
      restraint system, or that the motor vehicle has had an airbag removed
      and not replaced, unless the person clearly discloses, in writing, to
      the person to whom the person is selling, leasing, or trading the
      vehicle, prior to the sale, lease, or trade, that the airbag is
      missing or nonoperative.  In addition, a lessee who has executed a
      lease as defined in section 321F.1 shall provide the disclosure
      statement required in this subsection to the lessor upon termination
      of the lease.
         The written disclosure required by this subsection shall be deemed
      to be a damage disclosure statement for the purposes of subsections
      6, 8, and 11.
         11.  A person who knowingly makes a false damage disclosure
      statement or fails to make a damage disclosure statement required by
      this section commits a fraudulent practice.  Failure of a person,
      authorized vehicle recycler licensed under chapter 321H, or motor
      vehicle dealer licensed under chapter 322 to comply with any duty
      imposed by this section constitutes a violation of section 714.16,
      subsection 2, paragraph "a".
         12.  The department shall adopt rules as necessary to implement
      this section.  

         92 Acts, ch 1104, § 4; 95 Acts, ch 45, §4, 5; 96 Acts, ch 1152, §
      3; 97 Acts, ch 108, §8; 98 Acts, ch 1034, §1; 2002 Acts, ch 1063,
      §21; 2003 Acts, ch 56, §1--5; 2003 Acts, ch 179, §71; 2004 Acts, ch
      1007, §1; 2005 Acts, ch 19, §40, 41; 2006 Acts, ch 1010, §88
         Referred to in § 714H.3