Iowa Declaration of Value Form: When You Need It and When You Don't

When real estate changes hands in Iowa, the county auditor's office wants to know what it sold for. That's the purpose of the Iowa Declaration of Value form (Form 57-006) — it's the mechanism Iowa uses to document the consideration paid in a real estate transaction and to calculate whether transfer tax is owed. For most property sales, this form is mandatory. For estate distributions to heirs, it's a different story.

If you're transferring property as part of settling an estate, understanding the Declaration of Value requirement — and the exemptions from it — can save you time, money, and a trip back to the county recorder's office.

What the Iowa Declaration of Value Form Is

The Declaration of Value (Form 57-006) is a document required by Iowa Code § 428A.1 that must accompany most deeds and other instruments that convey real property in Iowa. It records the actual consideration paid for the property, the names of buyer and seller, the legal description of the property, and whether any exemptions from transfer tax apply.

The form is filed with the county recorder at the same time as the deed. The county auditor uses it to assess the real estate transfer tax (currently $0.80 per $500 of value, with the first $500 exempt) and to update the county's assessment records with current market values.

When an Iowa Estate Transfer Is Exempt

This is the critical point for executors and heirs: transfers of real estate from an estate to its heirs or devisees under a will are explicitly exempt from Iowa real estate transfer tax under Iowa Code § 428A.2(20). Deeds transferring real estate from a trust to trust beneficiaries are separately exempt under § 428A.2(22).

What this means practically: if you're distributing a house from an estate to the person who inherits it under a will, or from a revocable living trust to the named beneficiary, no transfer tax is owed.

However — and this is where executors make mistakes — claiming the exemption requires affirmative action. Simply submitting a deed without addressing the transfer tax issue will result in the county auditor assessing the tax. To legally claim the exemption, the specific exemption number must be explicitly printed on the face of the deed itself. The deed must reference § 428A.2(20) (for estate-to-heir transfers) or § 428A.2(22) (for trust distributions) directly on the document.

If you're having an attorney prepare the deed, verify they've included the exemption reference. If you're using a form deed, add the language yourself. County recorders across Iowa are consistent about this requirement — without the cited exemption on the face of the document, expect the transfer tax to be assessed and a delay in recording.

Does the Declaration of Value Form Still Need to Be Filed for Exempt Transfers?

Yes, in most cases the Declaration of Value form must still be completed and submitted even when the transfer is exempt from tax. The form documents the nature of the transfer and confirms which exemption applies. The county auditor still needs the information for assessment purposes.

The exception: some exempt transfers may qualify for a simplified process depending on the county and the specific instrument used (such as an Affidavit of Surviving Joint Tenant or an Affidavit of Surviving Spouse). Check with the specific county recorder's office before assuming the form can be omitted.

Real Estate Transfer Tax: What It Costs When It Does Apply

For transactions that aren't exempt — say, the estate sells the property to a third party rather than distributing it to an heir — transfer tax applies at $0.80 per $500 of consideration, with the first $500 exempt. On a $250,000 property sale, that's approximately $400 in transfer tax.

The county also charges recording fees separately: $7.00 for the first page of a document and $5.00 for each additional page. An auditor's transfer fee of $5.00 per block or section of land (capped at $50.00) also applies to documents that change property ownership.

The Groundwater Hazard Statement Connection

Before 2024, Iowa required a separate Groundwater Hazard Statement to accompany most real estate conveyances, certifying the absence of wells, underground storage tanks, hazardous waste, and similar issues. A recent change to Iowa Code § 558.69(8A) eliminated the need for this separate form when no known hazards exist — but replaced it with a specific requirement.

If there are no known hazards, the following exact phrase must be printed verbatim on the first page of the deed or conveyance instrument:

"There is no known private burial site, well, solid waste disposal site, underground storage tank, hazardous waste, or private sewage disposal system on the property as described in Iowa Code section 558.69, and therefore the transaction is exempt from the requirement to submit a groundwater hazard statement."

Minor variations in wording will cause the county recorder to reject the document. If you're preparing deed documents for an estate, this language must appear word-for-word. The estate exemption under § 428A.2(20), the groundwater hazard statement, and proper legal descriptions are the three most common points of failure in estate-related real estate transfers.

Joint Tenancy Property: Simpler Process

Real estate held in joint tenancy with right of survivorship bypasses probate entirely and transfers automatically to the surviving joint tenant at death. To clear the title and update county records, the surviving joint tenant files an Affidavit of Surviving Spouse (or Affidavit of Surviving Joint Tenant) with the county recorder — not a deed requiring a Declaration of Value.

This affidavit process is simpler and typically requires only:

• The completed affidavit identifying the deceased joint tenant and the surviving joint tenant
• A certified death certificate
• Payment of county recording fees ($7.00 for first page, $5.00 each additional page)

Transfer tax and the Declaration of Value form may not be required for this type of transfer, but again, verify with the specific county recorder's office since practice can vary slightly by county.

The Bigger Picture: Iowa Doesn't Allow TOD Deeds

One important context note for families planning ahead or trying to understand why a family member's property went through probate: Iowa does not allow transfer-on-death deeds for real estate. This means any property held solely in the deceased's name must pass through the Iowa probate process — regardless of the property's value. The only way to avoid probate for real estate in Iowa is joint tenancy with right of survivorship or a properly funded living trust.

This makes the real estate piece of Iowa estate administration more complex than in many other states, and the Declaration of Value form, deed preparation, and exemption citations need to be handled correctly to avoid delays in clearing title.

If you're working through transferring real estate as part of an Iowa estate — whether through formal probate, simplified Chapter 635 administration, or a joint tenancy affidavit — the Iowa Estate Settlement Guide covers the full process, including the specific documents required for each transfer pathway and how to prepare deeds that clear county recorders on the first submission.

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