Iowa Code ch. 562A § 562A.7
Unconscionability
Operative Text
1. If the court, as a matter of law, finds that: a. A rental agreement or any provision of it was unconscionable when made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable provision, or limit the application of an unconscionable provision to avoid an unconscionable result. b. A settlement in which a party waives or agrees to forego a claim or right under this chapter or under a rental agreement was unconscionable at the time it was made, the court may refuse to enforce the settlement, enforce the remainder of the settlement without the unconscionable provision, or limit the application of an unconscionable provision to avoid any unconscionable result. 2. If unconscionability is put into issue by a party or by the court upon its own motion the parties shall be afforded a reasonable opportunity to present evidence as to the setting, purpose, and effect of the rental agreement or settlement to aid the court in making the determination.
Iowa Code § 562A.7 gives courts the authority to address rental agreements or settlement terms that were fundamentally unfair at the time they were made. When a court finds a provision unconscionable, it can throw out the entire agreement, remove only the offending clause and enforce the rest, or narrow the clause's reach to prevent an unjust outcome. The same protections apply to settlements in which a party gave up rights under Iowa's landlord-tenant law. When unconscionability is raised—by either party or by the court itself—all sides must be given a fair chance to present evidence about the circumstances, intent, and impact of the agreement.
Plain English — not legal advice.
Under Iowa Code § 562A.7, courts scrutinize rental agreements and related settlements for terms that were one-sided or oppressive at the time of signing. Operators who use standard lease forms generally review those forms to ensure that no clause imposes terms so harsh or unexpected that a court could later find them unconscionable. Keeping records of how lease terms were presented and explained to prospective tenants can help demonstrate that the agreement was entered into fairly and with reasonable transparency.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Iowa Code § 562A.7 provides a legal basis for challenging rental agreement provisions or settlement terms that were grossly unfair when made, including waivers of rights granted under Iowa's Uniform Residential Landlord and Tenant Act. If unconscionability is raised in a court proceeding, tenants have the right to present evidence about the circumstances surrounding the agreement—such as how it was negotiated and what effect its terms have had. Tenants who believe a lease clause or settlement was unconscionable may wish to consult a tenant-rights organization or legal aid office to understand how this provision might apply to their situation.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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