News Maker - IOWA

IOWA:  On July 1, 2013, HF 565 became Law.  Originally introduced on March 13, 2013 as HF 565, the bill is title "An Act relating to mechanics liens and the mechanics notice and lien registry".

  • HF 565 makes conforming language corrections relating to the posting of pre-commencement and preliminary notices on the mechanic’s notice and lien registry.
  • General Contractors and Owner-Builders will not have to send precommencement notices to the owner-builders
  • Secretary of State will provide proof of service for notices posted on the registry site.
  • Each claim posted shall be indexed on the registry website.
  • False, forged or fictitious information posted by anyone on the registry is now subject to penalty.
  • Two years after a preliminary notice has been posted, it will be declared inactive unless renewed.

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Section by Section Review & Analysis

Sections 1 – Mechanic’s Lien-Perfection of Liens Requires that the legal description adequately describes the property being charged with the lien.

Section 2 – Extent of Lien Posted After Ninety Days

Strikes the word “filing” and replaces it with “posting” in regards to a claim for a lien.

Section 3 - Mechanic’s Lien Notice of Commencement of Work-General Contractor – Owner Builder Notice must be posted no later than ten (10) days after work commences on a property by a sub-contractor.

Section 4- Mechanic’s Lien-Notice of Commencement of Work-General Contractor-Owner Builder Notice must be sent to the owners address as posted to the mechanic’s notice and lien registry by the general contractor, owner-builder or subcontractor

If the owners address is different than the property address, a copy must be sent if a mailing address has been assigned to the property by the USPS.

Section 5 - Mechanic’s Lien-Notice of Commencement of Work-General Contractor-Owner Builder Notices under this section must not be sent to the owner-builder

Section 6 - Mechanic’s Lien-Preliminary Notice-Subcontractor-Residential Construction In the notice, the legal description must adequately describe the property to be charged with the lien.

Section 7 - Mechanic’s Lien-Preliminary Notice-Subcontractor-Residential Construction Strikes the word “docket” and replaces it with the word “post” in regards to the mailing of the notice on the mechanic’s lien. Removes the phrase “an affidavit of mailing” and replaces it with “proof of service”

Section 8 - Discharge of Mechanic’s Lien-Bond removes the word “filed” replaces it with “posted”

Section 9 - Priority over Garnishments of the Owner removes word “filing” replaces with “posting”

Section 10 - Mechanic’s Lien-Record of Claim every claim posted to the mechanics’ notice and lien registry internet website shall be properly indexed.

Section 11 - Mechanic’s Lien-Record of Claim Legal description must adequately describe the property to be charged with the lien.

Section 12 - Mechanic’s Lien-Acknowledgement of Satisfaction of Claim removes words “record” and “filing” replaces it with “posting”

Section 13 - Mechanic’s Lien-Demand for Bringing Suit Changes word “lienholder” to “claimant”

Section 14 - Mechanic’s Lien-Action by Subcontractor or Owner Against General Contractor or Owner-Builder In a civil action a bond posted by a general contractor must be approved by the administrator (secretary of state) instead of the Court.

Section 15 - Mechanic’s Lien Cooperative and Condominium Housing removes word “filed” replaces it with “posted”

Section 16 - Liability of Owner to General Contractor-Commercial Construction removes the word “filed” replaces it with “posted”. Specifies that this section applies to commercial construction properties only.

Section 17 - Mechanics’ Notice and Lien Registry (strikes words “residential construction” Specifies that any person who posts fictitious, forged, or false information to a Mechanics’ notice and lien registry is subject to penalty.

A preliminary notice that remains posted two (2) years after the date of posing shall be declared inactive by the administrator, unless renewed.

The administrator is also required to create a process for the removal of inactive notices and for the renewal of notices pursuant to rule.

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Wednesday, 20 November 2019

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