Bill Text: IA HF2318 | 2017-2018 | 87th General Assembly | Enrolled

Iowa House Bill 2318 (Prior Session Legislation)

Bill Title: A bill for an act relating to redemption by certain persons of parcels sold at tax sale. (Formerly HSB 605.) Effective 7-1-18.

Spectrum: Committee Bill

Status: (Passed) 2018-03-28 - Signed by Governor. H.J. 700. [HF2318 Detail]

Download: Iowa-2017-HF2318-Enrolled.html

House File 2318 - Enrolled

HOUSE FILE
BY COMMITTEE ON JUDICIARY

(SUCCESSOR TO HSB 605)

(COMPANION TO SF 2166
BY COMMITTEE ON
JUDICIARY)
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A BILL FOR
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House File 2318

AN ACT
RELATING TO REDEMPTION BY CERTAIN PERSONS OF PARCELS
SOLD AT TAX SALE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 445.1, Code 2018, is amended by adding
the following new subsections:
NEW SUBSECTION. 3A. "Legal representative" means a parent,
guardian, or conservator of a person with a legal disability, a
person appointed by a court to act on behalf of a person with a
legal disability, or a person acting on behalf of a person with
a legal disability pursuant to a power of attorney.
NEW SUBSECTION. 4A. "Person with a legal disability" means
a minor or a person of unsound mind.
Sec. 2. Section 447.7, Code 2018, is amended by striking the
section and inserting in lieu thereof the following:
447.7 Redemption by minors and persons of unsound mind.
1. If a parcel of a person with a legal disability is sold
at tax sale and the county treasurer has not delivered the
treasurer's deed, a legal representative of the person with the
legal disability may redeem the parcel under sections 447.1 and
447.3.
2. a. If a parcel of a person with a legal disability is
sold at tax sale and the county treasurer has delivered the
treasurer's deed, the person with the legal disability or the
person's legal representative may redeem the parcel at any
time prior to one year after the legal disability is removed
by bringing an equitable action for redemption in the district
court of the county where the parcel is located, unless the
action is required to be brought sooner in time by operation of
subsection 3 or 4.
b. To establish the right to redeem, the person maintaining
the action shall prove to the court that the owner of the
parcel is a person with a legal disability entitled to redeem
prior to the delivery of the treasurer's deed. If the legal
disability has been removed, the person maintaining the action
shall establish the date the disability was removed and explain
the manner by which the legal disability was removed.
c. The person maintaining the action shall name as
defendants all persons claiming an interest in the parcel
derived from the tax sale, as shown by the record.
d. If the court determines that the person maintaining the
action or the person's legal representative is entitled to
redeem by virtue of legal disability or prior legal disability,
the court shall so order. The order shall determine the
rights, claims, and interests of all parties, including liens
for taxes and claims for improvements made on or to the parcel
by the person claiming under the tax title. The order shall
establish the amount necessary to effect redemption. The
redemption amount shall include the amount for redemption
computed in accordance with section 447.1 or 447.3, whichever
is applicable, including interest computed up to and including
the date of payment of the total redemption amount to the clerk
of court and the amount of all costs added to the redemption
amount in accordance with section 447.13. In addition, if
the person claiming under the tax title is determined by the
court to have made improvements on or to the parcel after the
treasurer's deed was issued, the court shall enter judgment in
favor of the person claiming under the tax title for an amount
equal to the value of all such improvements, and such judgment
shall be a lien on the parcel until paid. The order shall
direct that the person maintaining the action shall pay to the
clerk of court, within thirty days after the date of the order,
the total redemption amount the order sets forth.
e. Upon timely receipt of the payment, the court shall
enter judgment declaring the treasurer's deed to be void and
determining the resulting rights, claims, and interests of
all parties to the action. In its judgment, the court shall
direct the clerk of court to deliver the entire amount of the
redemption payment to the person claiming title under the
treasurer's deed.
f. If the person maintaining the action fails to timely
deliver payment of the total redemption amount to the clerk of
court, the court shall enter judgment holding that all rights
of redemption of the person with a legal disability who brought
the action, or on whose behalf the action was brought, are
terminated and that the validity of the tax title or purported
tax title is conclusively established as a matter of law
against the claims of such person with a legal disability.
3. If a person with a legal disability remains in possession
of the parcel after the recording of the treasurer's deed, and
if the person claiming under the tax title properly commences
an action to remove the person from possession, the person
with a legal disability shall forfeit any rights of redemption
that the person may have under this section, unless either of
the following actions is timely filed by or on behalf of the
person:
a. A counterclaim in the removal action asserting the
redemption rights under subsection 2 of the person with a legal
disability.
b. A separate action under subsection 2. Such action shall
be filed within thirty days after the person with a legal
disability and the person's legal representative were served
with original notice in the removal action. If an action under
subsection 2 is filed by or on behalf of the person with a legal
disability within the thirty=day period, the court may order
the action consolidated with the removal action.
4. If a person with a legal disability is not in possession
of the parcel at the time of the recording of the treasurer's
deed, the person or the person's legal representative is
forever barred and estopped from commencing an action under
this section if either of the following occurs:
a. An affidavit is filed pursuant to section 448.15 and
claims adverse to the tax title are barred by section 448.16.
b. An action under subsection 2 is not brought within three
years after the recording of the treasurer's deed.
Sec. 3. Section 447.8, subsection 1, Code 2018, is amended
to read as follows:
1. a. After the delivery of the treasurer's deed, a person
entitled to redeem a parcel sold at tax sale shall do so only by
an equitable action in the district court of the county where
the parcel is located. The action to redeem may be maintained
only by a person who was entitled to redeem the parcel during
the ninety=day redemption period in section 447.12, except that
such a person may assign the person's right of redemption or
right to maintain the action to another person, or by a person
entitled to redeem under section 447.7.
b. In order to establish the right to redeem, the person
maintaining the action shall be required to prove to the court
either that the person maintaining the action or a predecessor
in interest was not properly served with notice in accordance
with the requirements of sections 447.9 through 447.12, or that
the person maintaining the action or a predecessor in interest
acquired an interest in or possession of the parcel during
the ninety=day redemption period in section 447.12. A person
shall not be entitled to maintain such action by claiming that
a different person was not properly served with notice of
expiration of right of redemption, if the person seeking to
maintain the action, or the person's predecessor in interest,
if applicable, was properly served with the notice. A After
the execution and delivery of the treasurer's deed, a person
is not allowed to may only redeem a parcel sold for delinquent
taxes in any other manner after the execution and delivery of
the treasurer's deed under this section or section 447.7.
Sec. 4. Section 448.6, subsection 1, Code 2018, is amended
to read as follows:
1. A deed executed by the county treasurer in conformity
with the requirements of sections 448.2 and 448.3 shall
be presumed to effect a valid title conveyance, and the
treasurer's deed may be challenged only by an equitable action
in the district court in the county in which the parcel is
located. If the action seeks an order of the court to allow
redemption after delivery of the treasurer's deed because the
person seeking to redeem is a person with a legal disability
who was entitled to redeem prior to the delivery of the
treasurer's deed, the action shall be brought in accordance
with section 447.7. If the action seeks an order of the court
to allow redemption after delivery of the treasurer's deed
based on improper service of notice of expiration of right of
redemption, the action shall be brought in accordance with
section 447.8. If the action is not brought on that basis
under section 447.7 or 447.8, the action shall be controlled by
the provisions of this section.
Sec. 5. Section 448.16, subsection 3, Code 2018, is amended
to read as follows:
3. An action to enforce a claim filed under subsection 1
shall be commenced within sixty days after the date of filing
the claim. The action may be commenced by the claimant, or
a person under whom the claimant claims title, under either
section 447.7, 447.8, or 448.6. If an action by the claimant,
or such other person, is not filed within sixty days after the
filing of the claim, the claim thereafter shall be forfeited
and canceled without any further notice or action, and the
claimant, or the person under whom the claimant claims title,
thereafter shall be forever barred and estopped from having or
claiming any right, title, or interest in the parcel adverse to
the tax title or purported tax title.

LINDA UPMEYER

CHARLES SCHNEIDE

CARMINE BOAL

KIM REYNOLDS

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