- Mechanic’s Lien Changes Coming to Iowa
- September 25, 2012 | Author: John F. Fatino
- Law Firm: Whitfield & Eddy, P.L.C. - Des Moines Office
The Governor recently signed into law House File 675. The Act creates significant changes to the registration of mechanic’s liens in Iowa. This article will summarize the impact of this new legislation which is effective January 1, 2013. H.F. 675 § 27. Until that time, liens should continue to be filed with the Clerk of the District Court. H.F. 675 § 28. Likewise, the notice provision of the Act applies only to labor or material furnished after the Act effective date. H.F. 675 § 28(2). For the purposes of this article, the references are to the Act sections.
Perhaps, the biggest change to the industry as a result of House File 675 is that mechanic’s liens are no longer filed with the Clerk of the District Court but are required to be posted on a “State Construction Registry” website. The administrator of this site is the Iowa Secretary of State.
In order to perfect a mechanic’s lien, a party must post to the State Construction Registry a verified statement of account of the amount due the person in addition to all information required by the new Iowa Code § 572.8(a-e). Liens still are limited to the county in which the building, land, or improvement is located.
Other changes are detailed in the Act with which the reader should acquaint themselves. However, the Act does not appear to change existing case law with respect to substantive rights under Iowa Code Chapter 572.
The Secretary of State’s Office and various other stakeholders are in the process of crafting the administrative rules which will govern filing on the website and related procedures. Proposed administrative rules have been published and are available at https://www.legis.iowa.gov/DOCS/ACO/IAC/LINC/09-19-2012.Bulletin.pdf.