Bill Text: IA HSB192 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A study bill relating to real estate, including redemption by certain persons of parcels sold at tax sale and requirements for timely filing of releases or satisfactions of mortgages.
Spectrum: Unknown
Status: (Introduced - Dead) 2015-03-02 - Judiciary: Hagenow Chair,Anderson, and Gustafson. [HSB192 Detail]
Download: Iowa-2015-HSB192-Introduced.html
House
Study
Bill
192
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
BALTIMORE)
A
BILL
FOR
An
Act
relating
to
real
estate,
including
redemption
by
certain
1
persons
of
parcels
sold
at
tax
sale
and
requirements
for
2
timely
filing
of
releases
or
satisfactions
of
mortgages.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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DIVISION
I
1
REDEMPTION
FROM
TAX
SALES
BY
CERTAIN
PERSONS
2
Section
1.
Section
445.1,
Code
2015,
is
amended
by
adding
3
the
following
new
subsections:
4
NEW
SUBSECTION
.
3A.
“Legal
representative”
means
a
parent,
5
guardian,
or
conservator
of
a
person
with
a
legal
disability,
a
6
person
appointed
by
a
court
to
act
on
behalf
of
a
person
with
a
7
legal
disability,
or
a
person
acting
on
behalf
of
a
person
with
8
a
legal
disability
pursuant
to
a
power
of
attorney.
9
NEW
SUBSECTION
.
4A.
“Person
with
a
legal
disability”
means
10
a
minor
or
a
person
of
unsound
mind.
11
Sec.
2.
Section
447.7,
Code
2015,
is
amended
by
striking
the
12
section
and
inserting
in
lieu
thereof
the
following:
13
447.7
Redemption
by
minors
and
persons
of
unsound
mind.
14
1.
If
a
parcel
of
a
person
with
a
legal
disability
is
sold
15
at
tax
sale
and
the
county
treasurer
has
not
delivered
the
16
treasurer’s
deed,
a
legal
representative
of
the
person
with
the
17
legal
disability
may
redeem
the
parcel
under
section
447.1
and
18
section
447.3.
19
2.
a.
If
a
parcel
of
a
person
with
a
legal
disability
is
20
sold
at
tax
sale
and
the
county
treasurer
has
delivered
the
21
treasurer’s
deed,
the
person
with
the
legal
disability
or
the
22
person’s
legal
representative
may
redeem
the
parcel
at
any
23
time
prior
to
one
year
after
the
legal
disability
is
removed
24
by
bringing
an
equitable
action
for
redemption
in
the
district
25
court
of
the
county
where
the
parcel
is
located,
unless
the
26
action
is
required
to
be
brought
sooner
in
time
by
operation
of
27
subsection
3
or
subsection
4.
28
b.
To
establish
the
right
to
redeem,
the
person
maintaining
29
the
action
shall
prove
to
the
court
that
the
owner
of
the
30
parcel
is
a
person
with
a
legal
disability
entitled
to
redeem
31
prior
to
the
delivery
of
the
treasurer’s
deed.
If
the
legal
32
disability
has
been
removed,
the
person
maintaining
the
action
33
shall
establish
the
date
the
disability
was
removed
and
explain
34
the
manner
by
which
the
legal
disability
was
removed.
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c.
The
person
maintaining
the
action
shall
name
as
1
defendants
all
persons
claiming
an
interest
in
the
parcel
2
derived
from
the
tax
sale,
as
shown
by
the
record.
3
d.
If
the
court
determines
that
the
person
maintaining
the
4
action
or
the
person’s
legal
representative
is
entitled
to
5
redeem
by
virtue
of
legal
disability
or
prior
legal
disability,
6
the
court
shall
so
order.
The
order
shall
determine
the
7
rights,
claims,
and
interests
of
all
parties,
including
liens
8
for
taxes
and
claims
for
improvements
made
on
or
to
the
parcel
9
by
the
person
claiming
under
the
tax
title.
The
order
shall
10
establish
the
amount
necessary
to
effect
redemption.
The
11
redemption
amount
shall
include
the
amount
for
redemption
12
computed
in
accordance
with
section
447.1
or
447.3,
whichever
13
is
applicable,
including
interest
computed
up
to
and
including
14
the
date
of
payment
of
the
total
redemption
amount
to
the
clerk
15
of
court
and
the
amount
of
all
costs
added
to
the
redemption
16
amount
in
accordance
with
section
447.13.
In
addition,
if
17
the
person
claiming
under
the
tax
title
is
determined
by
the
18
court
to
have
made
improvements
on
or
to
the
parcel
after
the
19
treasurer’s
deed
was
issued,
the
court
shall
enter
judgment
in
20
favor
of
the
person
claiming
under
the
tax
title
for
an
amount
21
equal
to
the
value
of
all
such
improvements,
and
such
judgment
22
shall
be
a
lien
on
the
parcel
until
paid.
The
order
shall
23
direct
that
the
person
maintaining
the
action
shall
pay
to
the
24
clerk
of
court,
within
thirty
days
after
the
date
of
the
order,
25
the
total
redemption
amount
the
order
sets
forth.
26
e.
Upon
timely
receipt
of
the
payment,
the
court
shall
27
enter
judgment
declaring
the
treasurer’s
deed
to
be
void
and
28
determining
the
resulting
rights,
claims,
and
interests
of
29
all
parties
to
the
action.
In
its
judgment,
the
court
shall
30
direct
the
clerk
of
court
to
deliver
the
entire
amount
of
the
31
redemption
payment
to
the
person
claiming
title
under
the
32
treasurer’s
deed.
33
f.
If
the
person
maintaining
the
action
fails
to
timely
34
deliver
payment
of
the
total
redemption
amount
to
the
clerk
of
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court,
the
court
shall
enter
judgment
holding
that
all
rights
1
of
redemption
of
the
person
with
a
legal
disability
who
brought
2
the
action,
or
on
whose
behalf
the
action
was
brought,
are
3
terminated
and
that
the
validity
of
the
tax
title
or
purported
4
tax
title
is
conclusively
established
as
a
matter
of
law
5
against
the
claims
of
such
person
with
a
legal
disability.
6
3.
If
a
person
with
a
legal
disability
remains
in
possession
7
of
the
parcel
after
the
recording
of
the
treasurer’s
deed,
and
8
if
the
person
claiming
under
the
tax
title
properly
commences
9
an
action
to
remove
the
person
from
possession,
the
person
10
with
a
legal
disability
shall
forfeit
any
rights
of
redemption
11
that
the
person
may
have
under
this
section,
unless
either
of
12
the
following
actions
is
timely
filed
by
or
on
behalf
of
the
13
person:
14
a.
A
counterclaim
in
the
removal
action
asserting
the
15
redemption
rights
under
subsection
2
of
the
person
with
a
legal
16
disability.
17
b.
A
separate
action
under
subsection
2.
Such
action
shall
18
be
filed
within
thirty
days
after
the
person
with
a
legal
19
disability
and
the
person’s
legal
representative
were
served
20
with
original
notice
in
the
removal
action.
If
an
action
under
21
subsection
2
is
filed
by
or
on
behalf
of
the
person
with
a
legal
22
disability
within
the
thirty-day
period,
the
court
may
order
23
the
action
consolidated
with
the
removal
action.
24
4.
If
a
person
with
a
legal
disability
is
not
in
possession
25
of
the
parcel
at
the
time
of
the
recording
of
the
treasurer’s
26
deed,
the
person
or
the
person’s
legal
representative
is
27
forever
barred
and
estopped
from
commencing
an
action
under
28
this
section
if
either
of
the
following
occurs:
29
a.
An
affidavit
is
filed
pursuant
to
section
448.15
and
30
claims
adverse
to
the
tax
title
are
barred
by
section
448.16.
31
b.
An
action
under
subsection
2
is
not
brought
within
three
32
years
after
the
recording
of
the
treasurer’s
deed.
33
Sec.
3.
Section
447.8,
subsection
1,
Code
2015,
is
amended
34
to
read
as
follows:
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1.
a.
After
the
delivery
of
the
treasurer’s
deed,
a
person
1
entitled
to
redeem
a
parcel
sold
at
tax
sale
shall
do
so
only
by
2
an
equitable
action
in
the
district
court
of
the
county
where
3
the
parcel
is
located.
The
action
to
redeem
may
be
maintained
4
only
by
a
person
who
was
entitled
to
redeem
the
parcel
during
5
the
ninety-day
redemption
period
in
section
447.12
,
except
that
6
such
a
person
may
assign
the
person’s
right
of
redemption
or
7
right
to
maintain
the
action
to
another
person
,
or
by
a
person
8
entitled
to
redeem
under
section
447.7
.
9
b.
In
order
to
establish
the
right
to
redeem,
the
person
10
maintaining
the
action
shall
be
required
to
prove
to
the
court
11
either
that
the
person
maintaining
the
action
or
a
predecessor
12
in
interest
was
not
properly
served
with
notice
in
accordance
13
with
the
requirements
of
sections
447.9
through
447.12
,
or
that
14
the
person
maintaining
the
action
or
a
predecessor
in
interest
15
acquired
an
interest
in
or
possession
of
the
parcel
during
16
the
ninety-day
redemption
period
in
section
447.12
.
A
person
17
shall
not
be
entitled
to
maintain
such
action
by
claiming
that
18
a
different
person
was
not
properly
served
with
notice
of
19
expiration
of
right
of
redemption,
if
the
person
seeking
to
20
maintain
the
action,
or
the
person’s
predecessor
in
interest,
21
if
applicable,
was
properly
served
with
the
notice.
A
After
22
the
execution
and
delivery
of
the
treasurer’s
deed,
a
person
23
is
not
allowed
to
may
only
redeem
a
parcel
sold
for
delinquent
24
taxes
in
any
other
manner
after
the
execution
and
delivery
of
25
the
treasurer’s
deed
under
this
section
or
section
447.7
.
26
Sec.
4.
Section
448.6,
subsection
1,
Code
2015,
is
amended
27
to
read
as
follows:
28
1.
A
deed
executed
by
the
county
treasurer
in
conformity
29
with
the
requirements
of
sections
448.2
and
448.3
shall
30
be
presumed
to
effect
a
valid
title
conveyance,
and
the
31
treasurer’s
deed
may
be
challenged
only
by
an
equitable
action
32
in
the
district
court
in
the
county
in
which
the
parcel
is
33
located.
If
the
action
seeks
an
order
of
the
court
to
allow
34
redemption
after
delivery
of
the
treasurer’s
deed
because
the
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person
seeking
to
redeem
is
a
person
with
a
legal
disability
1
who
was
entitled
to
redeem
prior
to
the
delivery
of
the
2
treasurer’s
deed,
the
action
shall
be
brought
in
accordance
3
with
section
447.7.
If
the
action
seeks
an
order
of
the
court
4
to
allow
redemption
after
delivery
of
the
treasurer’s
deed
5
based
on
improper
service
of
notice
of
expiration
of
right
of
6
redemption,
the
action
shall
be
brought
in
accordance
with
7
section
447.8
.
If
the
action
is
not
brought
on
that
basis
8
under
section
447.7
or
section
447.8
,
the
action
shall
be
9
controlled
by
the
provisions
of
this
section
.
10
Sec.
5.
Section
448.16,
subsection
3,
Code
2015,
is
amended
11
to
read
as
follows:
12
3.
An
action
to
enforce
a
claim
filed
under
subsection
1
13
shall
be
commenced
within
sixty
days
after
the
date
of
filing
14
the
claim.
The
action
may
be
commenced
by
the
claimant,
or
15
a
person
under
whom
the
claimant
claims
title,
under
either
16
section
447.7,
447.8
,
or
448.6
.
If
an
action
by
the
claimant,
17
or
such
other
person,
is
not
filed
within
sixty
days
after
the
18
filing
of
the
claim,
the
claim
thereafter
shall
be
forfeited
19
and
canceled
without
any
further
notice
or
action,
and
the
20
claimant,
or
the
person
under
whom
the
claimant
claims
title,
21
thereafter
shall
be
forever
barred
and
estopped
from
having
or
22
claiming
any
right,
title,
or
interest
in
the
parcel
adverse
to
23
the
tax
title
or
purported
tax
title.
24
DIVISION
II
25
RELEASES
OR
SATISFACTIONS
OF
MORTGAGES
26
Sec.
6.
Section
535B.11,
subsection
5,
Code
2015,
is
amended
27
by
striking
the
subsection.
28
Sec.
7.
Section
655.1,
Code
2015,
is
amended
to
read
as
29
follows:
30
655.1
Written
instrument
acknowledging
satisfaction.
31
1.
When
the
amount
due
on
a
mortgage
is
paid
off,
the
32
mortgagee,
the
mortgagee’s
personal
representative
or
assignee,
33
the
mortgage
servicer,
or
those
legally
acting
for
the
34
mortgagee,
and
in
case
of
payment
of
a
school
fund
mortgage
,
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the
county
auditor,
must
shall,
within
thirty
days
of
payment
1
in
full,
acknowledge
satisfaction
thereof
by
execution
of
2
an
a
proper
instrument
of
satisfaction
which
is
in
writing,
3
referring
refers
to
the
mortgage,
and
is
duly
acknowledged
4
and
recorded.
For
purposes
of
this
section,
an
instrument
of
5
satisfaction
executed
by
a
person
other
than
the
mortgagee,
6
if
the
mortgagee
is
an
individual,
or
other
than
a
qualified
7
officer
of
the
mortgagee,
if
the
mortgagee
is
an
entity,
is
not
8
proper
if
the
authority
of
the
person
executing
the
instrument
9
does
not
appear
of
record
in
relation
to
the
mortgage
or
the
10
property
that
is
the
subject
of
the
mortgage
in
the
county
11
where
the
mortgage
is
recorded.
12
2.
For
purposes
of
this
chapter,
“mortgage
servicer”
means
13
a
person,
other
than
the
mortgagee,
to
whom
the
mortgagee
14
instructs
the
mortgagor
or
mortgagor’s
successor
in
interest
to
15
send
payments
on
a
loan
secured
by
the
mortgage.
16
Sec.
8.
NEW
SECTION
.
655.2
Written
demand
for
satisfaction.
17
1.
At
any
time
after
payment
in
full
of
the
mortgage,
the
18
owner
of
the
property
subject
to
the
mortgage,
or
the
owner’s
19
legal
representative
or
agent,
may
personally
serve
upon
the
20
current
record
holder
of
the
mortgage
a
demand
for
the
record
21
holder
to
record
a
proper
instrument
of
satisfaction
of
the
22
record
holder’s
interest
in
the
mortgage.
The
demand
must
23
include
a
description
of
the
mortgage
to
be
satisfied,
and
24
include
any
specific
requirements
necessary
for
the
mortgage
to
25
be
satisfied.
26
2.
In
addition
to
any
other
manner
permitted
by
law
for
27
personal
service,
the
demand
may
be
served
as
follows:
28
a.
By
certified
mail,
return
receipt
requested,
on
a
natural
29
person
who
is
a
resident
in
the
state
or
on
the
Iowa
registered
30
agent
of
a
person
authorized
to
do
business
in
Iowa.
31
b.
In
the
manner
provided
in
section
490.1510,
subsection
32
3,
on
a
person
who
is
a
nonresident
and
does
not
have
a
current
33
certificate
of
authority
to
transact
business
in
Iowa.
34
c.
A
notice
of
intent
to
execute
and
record
a
certificate
of
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_____
release
sent
to
the
mortgagee
or
mortgage
servicer
by
the
title
1
guaranty
division
of
the
Iowa
finance
authority
under
section
2
16.92.
3
3.
If
notice
is
served
under
subsection
2,
paragraph
“a”
or
4
“b”
,
the
notice
is
effective
at
the
earliest
of
the
date
the
5
record
holder
receives
the
certified
mail,
the
date
shown
on
6
the
return
receipt,
if
signed
on
behalf
of
the
record
holder,
7
and
five
days
after
its
deposit
in
the
United
States
mail,
as
8
evidenced
by
the
postmark,
if
mailed
postpaid
and
correctly
9
addressed.
If
notice
is
served
under
subsection
2,
paragraph
10
“c”
,
notice
is
effective
under
any
of
the
circumstances
11
described
in
section
16.92,
subsection
3,
paragraph
“d”
.
12
Sec.
9.
Section
655.3,
Code
2015,
is
amended
to
read
as
13
follows:
14
655.3
Penalty
for
failure
to
discharge.
15
1.
If
a
mortgagee,
or
a
mortgagee’s
personal
representative
16
or
assignee,
or
mortgage
servicer,
upon
full
performance
of
17
the
conditions
of
the
mortgage,
fails
to
discharge
record
the
18
satisfaction
of
such
mortgage
within
in
accordance
with
section
19
655.1
by
the
later
of
ten
days
after
service
of
a
notice
is
20
effective
under
section
655.2
or
thirty
days
after
a
request
21
for
discharge
payment
in
full
of
the
mortgage
,
the
mortgagee
is
22
liable
to
the
mortgagor
and
the
mortgagor’s
heirs
or
assigns,
23
for
a
damage
award
that
is
an
amount
equal
to
the
greater
of
24
the
sum
of
all
actual
damages
caused
by
such
the
failure,
25
including
reasonable
attorney
fees
and
expert
witness
fees,
26
if
any,
to
obtain
such
discharge,
reasonable
attorney
fees
to
27
collect
the
amounts
due
the
mortgagor
or
the
mortgagor’s
heirs,
28
assigns,
or
grantees
under
this
section,
and
court
costs
or
the
29
minimum
damage
award,
as
defined
in
subsection
2,
in
effect
at
30
the
commencement
of
an
action
to
collect
such
damages,
plus
31
court
courts
.
A
claim
for
such
damages
a
damage
award
may
be
32
asserted
in
an
action
for
discharge
of
the
mortgage.
If
the
33
defendant
is
not
a
resident
of
this
state,
such
action
may
34
be
maintained
upon
the
expiration
of
thirty
days
after
the
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conditions
of
the
mortgage
have
been
performed,
without
such
1
previous
request
or
tender.
2
2.
a.
The
minimum
damage
award
for
the
period
beginning
3
July
1,
2015,
and
ending
June
30,
2020,
is
seven
hundred
4
dollars.
5
b.
For
each
subsequent
five-year
period,
if
the
consumer
6
price
index
for
all
urban
consumers
published
by
the
United
7
States
bureau
of
labor
statistics
in
June
of
the
most
recently
8
ended
five-year
period
has
increased
over
the
consumer
price
9
index
for
all
urban
consumers
in
June
of
the
fifth
year
of
the
10
five-year
period
immediately
preceding
the
most
recently
ended
11
five-year
period,
the
minimum
damage
award
amount
will
increase
12
by
the
same
ratio
that
the
consumer
price
index
increased
13
over
those
time
periods.
If
the
consumer
price
index
did
not
14
increase
over
those
time
periods,
the
minimum
damage
award
15
amount
will
remain
the
same
as
for
the
most
recently
ended
16
five-year
period.
17
c.
If
the
United
States
bureau
of
labor
statistics
ceases
18
to
publish
the
consumer
price
index
for
all
urban
consumers,
19
the
calculation
in
paragraph
“b”
shall
be
based
on
the
increase
20
in
inflation
over
the
most
recently
ended
five-year
period,
21
as
measured
by
a
nationally
recognized
index
of
changes
in
22
inflation
selected
by
the
state
treasurer
and
published
in
the
23
Iowa
administrative
bulletin.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
real
estate
by
modifying
the
mechanism
28
by
which
minors
or
persons
of
unsound
mind,
or
their
legal
29
representatives,
who
own
real
estate
which
was
sold
at
a
tax
30
sale
may
redeem
such
parcels
and
the
requirements
for
timely
31
filing
of
releases
or
satisfactions
of
mortgages
and
the
32
remedies
for
the
failure
to
do
so.
33
The
bill
defines
“legal
representative”
as
a
parent,
34
guardian,
or
conservator
of
a
person
with
a
legal
disability,
a
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person
appointed
by
a
court
to
act
on
behalf
of
a
person
with
a
1
legal
disability,
or
a
person
acting
on
behalf
of
a
person
with
2
a
legal
disability
pursuant
to
a
power
of
attorney.
The
bill
3
defines
“person
with
a
legal
disability”
as
a
minor
or
a
person
4
of
unsound
mind.
5
DIVISION
I
——
REDEMPTION
FROM
TAX
SALES
BY
CERTAIN
PERSONS.
6
Under
current
law,
if
a
person
with
a
legal
disability
is
the
7
owner
of
a
parcel
that
is
sold
at
a
tax
sale
and
the
treasurer’s
8
deed
has
been
delivered,
the
person
with
a
legal
disability
9
may
redeem
the
parcel
at
any
time
within
one
year
after
the
10
disability
is
removed,
in
the
manner
specified
in
Code
section
11
447.8.
Code
section
447.8
specifies
the
manner
of
redemption
12
by
an
owner
who
alleges
a
failure
by
the
holder
of
the
tax
title
13
to
serve
the
parcel
owner
with
notice
of
the
tax
sale
and
the
14
parcel
owner’s
redemption
rights.
15
The
bill
specifies
the
procedure
by
which
a
person
with
16
a
legal
disability
can
redeem
a
parcel
sold
at
a
tax
sale
17
after
the
delivery
of
the
treasurer’s
deed.
Before
delivery
18
of
the
treasurer’s
deed,
the
bill
provides
that
the
person
19
with
a
legal
disability
or
the
person’s
legal
representative
20
may
redeem
under
Code
sections
447.1
and
447.3,
which
is
the
21
same
as
current
law.
After
delivery
of
the
treasurer’s
deed,
22
the
person
with
a
legal
disability
or
the
person’s
legal
23
representative
must
bring
an
equitable
action
for
redemption
in
24
the
district
court
of
the
county
where
the
parcel
is
located
25
and
prove
to
the
court
that
prior
to
the
delivery
of
the
26
treasurer’s
deed,
the
person
with
a
legal
disability
or
the
27
person’s
legal
representative
was
entitled
to
redeem
by
virtue
28
of
such
disability.
All
persons
claiming
an
interest
in
the
29
parcel
from
the
tax
sale
must
be
named
as
defendants.
If
the
30
court
determines
that
the
person
with
a
legal
disability
or
the
31
person’s
legal
representative
is
entitled
to
redeem,
the
court
32
will
determine
the
rights,
claims,
and
interests
of
all
of
the
33
parties,
and
will
establish
the
amount
necessary
to
effect
34
redemption.
The
person
with
a
legal
disability
or
the
person’s
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legal
representative
has
30
days
after
the
date
of
the
order
1
to
pay
the
redemption
amount.
Upon
timely
receipt
of
payment,
2
the
court
shall
declare
the
treasurer’s
deed
to
be
invalid.
3
If
the
person
with
a
legal
disability
or
the
person’s
legal
4
representative
fails
to
timely
deliver
payment,
such
person’s
5
redemption
rights
are
terminated.
6
The
action
may
be
brought
until
one
year
after
the
disability
7
is
removed
unless
otherwise
barred.
The
bill
bars
bringing
8
the
action
if
the
person
with
a
legal
disability
remained
in
9
possession
of
the
parcel,
the
person
claiming
under
the
tax
10
title
properly
commenced
an
action
to
remove
the
person
with
11
a
legal
disability,
and
the
person
with
a
legal
disability
12
or
the
person’s
legal
representative
fails
to
timely
file
13
a
counterclaim
or
separate
action
asserting
the
right
of
14
redemption.
The
bill
also
bars
the
action
if
the
person
with
15
a
legal
disability
is
not
in
possession
of
the
parcel
and
the
16
action
is
barred
by
Code
section
448.16.
Code
section
448.16
17
bars
actions
where
the
person
claiming
under
tax
title
records
18
an
affidavit
with
the
county
recorder
of
the
county
where
the
19
parcel
is
located
and
a
person
with
redemption
rights
fails
to
20
file
a
claim
within
120
days
after
the
filing
of
the
affidavit.
21
Finally,
the
bill
bars
the
action
if
it
is
not
filed
within
22
three
years
of
the
recording
of
the
treasurer’s
deed.
23
DIVISION
II
——
RELEASES
OR
SATISFACTIONS
OF
MORTGAGES.
The
24
bill
makes
changes
with
regard
to
requirements
of
written
25
instruments
of
satisfaction
of
mortgages
and
the
penalties
for
26
failure
of
mortgagees
or
mortgage
servicers
to
timely
deliver
27
releases
of
mortgages.
28
The
bill
strikes
Code
section
535B.11,
subsection
5.
29
Code
section
535B.11,
subsection
5,
requires
a
licensee
or
30
other
mortgagee
who
services
mortgages
on
residential
real
31
estate
to
execute
and
deliver
a
release
after
payoff
and
32
within
45
days
after
receipt
of
payment.
If
the
licensee
or
33
mortgagee
fails
to
do
so
within
15
days,
the
mortgagor
may
34
notify
the
superintendent
of
the
division
of
banking
of
the
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department
of
commerce.
If
the
licensee
or
mortgagee
fails
1
to
make
the
release
and
deliver
it
to
the
superintendent,
the
2
superintendent
may
assess
a
penalty
not
to
exceed
$50
for
each
3
day
of
delinquency
after
the
15
days.
4
Under
current
Code
section
655.1,
when
the
amount
due
on
a
5
mortgage
is
paid
off,
the
mortgagee
or
the
mortgagee’s
personal
6
representative
must
acknowledge
satisfaction
by
execution
of
7
an
instrument,
which
is
duly
recorded.
The
bill
requires
that
8
such
an
instrument
of
satisfaction
must
be
recorded
within
9
30
days
after
receipt
of
payment
in
full
and
extends
the
10
requirement
to
a
mortgage
servicer.
The
bill
defines
“mortgage
11
servicer”
as
a
person,
other
than
the
mortgagee,
to
whom
the
12
mortgagee
instructs
the
mortgagor
or
mortgagor’s
successor
in
13
interest
to
send
payments
on
a
loan
secured
by
the
mortgage.
14
The
bill
provides
if
the
mortgagee
is
an
entity,
the
authority
15
of
the
person
executing
the
instrument
of
satisfaction
must
16
appear
of
record
in
relation
to
the
mortgage
or
the
property
in
17
the
county
where
the
mortgage
is
recorded.
18
The
bill
also
provides
that
after
payment
of
the
mortgage
in
19
full,
the
owner
of
the
property
may
serve
the
current
record
20
holder
of
the
mortgage
and
demand
the
recording
of
a
proper
21
instrument
of
satisfaction.
If
the
record
holder
of
the
22
mortgage
fails
to
record
the
written
instrument
of
satisfaction
23
by
the
later
of
10
days
after
the
mortgagor
has
served
notice
24
of
a
demand
for
the
recordation
of
the
written
instrument
of
25
satisfaction
and
30
days
after
payment
in
full,
the
mortgagee
26
is
liable.
Damages
are
the
greater
of
(a)
all
actual
damages
27
caused
by
the
failure
to
record
the
written
instrument
of
28
satisfaction,
including
reasonable
attorney
fees
and
expert
29
witness
fees
necessary
to
obtain
the
discharge,
reasonable
30
attorney
fees
to
collect
the
damages,
and
court
costs
and
(b)
31
a
minimum
damage
award
plus
court
costs.
The
minimum
damage
32
award
amount
from
July
1,
2015,
to
June
30,
2020,
is
$700.
The
33
bill
provides
for
a
calculation
of
the
minimum
damage
award
34
amount
for
each
five-year
period
after
the
initial
five-year
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period.
For
each
subsequent
five-year
period,
if
the
consumer
1
price
index
for
all
urban
consumers
has
increased
in
the
2
five-year
period,
the
minimum
damage
award
amount
will
increase
3
by
the
same
ratio
that
the
consumer
price
index
increased.
If
4
the
consumer
price
index
did
not
increase,
the
minimum
damage
5
award
amount
will
remain
the
same
as
for
the
most
recently
6
ended
five-year
period.
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