Iowa Lien: A Complete Guide to Liens in the State

A legal claim put on property to ensure that a debt or obligation is paid is called a lien. A lien stops property owners from selling, transferring, or refinancing until the lien is settled, and once it is filed, it grants creditors the authority to compel payments. It's critical to comprehend Iowa's lien laws because they differ from those in other states.

What Is a Lien in Iowa?

A lien in Iowa is a creditor's legitimate claim on a portion of a debtor's assets until the debt is paid off. Real estate (houses, farms, land, and business buildings) and personal property (cars, machinery, and company assets) are both subject to liens. Chapter 572 of the Iowa Code covers the matter of liens in the state.

Liens notify lenders, title companies, and prospective purchasers about unpaid debts once they are recorded and made public. Liens can prevent sales or cause delays in refinancing for property owners. Lien checks are an essential component of due diligence for purchasers. Liens give creditors a legally binding way to ensure payment.

Types of Liens in Iowa

The most common liens filed in Iowa include:

1. Property Tax Liens

These liens are filed by counties when property taxes remain unpaid. They take priority and may result in tax sales. The taxes are considered fully paid once they are sold to a third party at a tax sale.

2. Mechanic’s or Materialman’s Liens

This lien is the most common type in Iowa. A mechanic's lien may be filed by anybody who provides labor or supplies for the renovation, repair, or improvement of a structure or piece of land. This covers material suppliers, subcontractors, and general contractors. According to Iowa law, all residential construction projects must make use of the MNLR, a centralized online database. The Secretary of State for Iowa is responsible for overseeing this registration.

3. Judgment Liens

A judgment rendered by an Iowa court constitutes a lien on the debtor's real estate. By submitting a certified transcript of the judgment to the county recorder, the lien might be extended to additional counties. .

4. Mortgage Liens

Standard liens can be placed by lenders when issuing a mortgage loan. They remain until the mortgage is repaid and a release is recorded.

5. IRS or Iowa Department of Revenue Tax Liens

Unpaid federal or state taxes can result in the filing of federal and state tax liens. Both personal assets and real estate are subject to these liens.

6. Agricultural Liens

There are particular laws in Iowa that deal with liens on livestock and agricultural goods. For instance, if rent is not paid, a landlord may have a lien on crops cultivated on leased property. In order to establish priority and perfect these liens, they must also meet the Uniform Commercial Code's (UCC) filing requirements.

How to Search for Liens in Iowa

Lien records in Iowa are public and may be searched through the following sources:

• County Recorder’s Offices: Lien and property records are kept in all 99 Iowan counties. You can search by parcel number, address, or name of the property owner.
• Iowa Land Records Portal: IowaLandRecords, a statewide online system, provides access to recorded documents, including liens, from county offices.
• Iowa Courts Online: You can search for judgment liens through the state’s court case access system.
• Title Companies and Third-Party Services: This is frequently used to perform thorough lien searches and title investigations in real estate deals.

Lien filings generally include creditor details, amounts owed, recording dates, and legal property descriptions.

Lien Records in Major Iowa Cities

Since lien records are county-based in Iowa, searches must be conducted in the county where the property is located:

• Des Moines (Polk County): The Polk County Recorder maintains lien filings with in-person and online search access.
• Cedar Rapids (Linn County): In this county, you can get lien records through the Linn County Recorder’s Office.
• Davenport (Scott County): The Scott County Recorder provides property and lien searches.
• Sioux City (Woodbury County): TheWoodbury County Recorder keeps track of lien files..
• Iowa City (Johnson County): Property and lien filings are handled by the Johnson County Recorder's Office.

Each county may set its own rules on search fees, online access, and certified document requests.

How Long Does a Lien Stay on Property in Iowa?

The duration of a lien in Iowa depends on its type:

• Property Tax Liens: Property tax liens remain until taxes are paid or the property is sold at a tax sale. There is typically a redemption period of 1 to 2 years.
• Mechanic’s Liens: Mechanic’s liens must be enforced within 2 years of filing or they expire.
• Judgment Liens: These are valid for 10 years in Iowa and can be renewed.
• Mortgage Liens: Mortgage liens remain in effect until the mortgage is paid in full and released.
• Tax Liens (IRS/State): Federal tax liens generally last 10 years, while state tax liens follow Iowa’s statutory collection rules.

Note that even when they have been paid, satisfied liens could show up in public records and lead to problems with title.

How to Remove a Lien in Iowa

Lien removal in Iowa requires addressing the debt or challenging the lien’s validity. Common methods include:

1. Paying the Debt: Once satisfied, the lienholder must issue a lien release to be recorded with the county recorder.
2. Negotiating a Settlement: Creditors may agree to reduced payments or settlement terms, followed by filing a release.
3. Court Petition: Liens that have been filed fraudulently, incorrectly, or invalidly can be challenged by property owners in court..
4. Recording a Release or Satisfaction: To make sure the title is cleared, property owners should confirm that the lienholder files the release.

Without a recorded release, liens may continue to cloud property records even after the debt is paid.

In Iowa, liens play a crucial role in property law by safeguarding creditors and making property owners answerable for debts. Buyers, sellers, and lenders must all be aware of the several kinds of liens in Iowa, how to look for them, how long they last, and how to get rid of them.

Working with a county recorder, title business, or attorney helps guarantee liens are handled correctly because Iowa requires adherence to filing and enforcement regulations. Property owners can safeguard their title and steer clear of issues in real estate transactions by properly settling liens.