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1 1 Section 1. NEW SECTION. 558B.1 TITLE.
1 2 This chapter shall be known as the Iowa electronic
1 3 recording system Act.
1 4 Sec. 2. NEW SECTION. 558B.2 STATEMENT OF PURPOSE AND
1 5 UNIFORMITY.
1 6 1. The creation and transfer of interests in real estate
1 7 are essential parts of the economy of the state of Iowa. The
1 8 speedy, efficient, and secure preservation and searching of
1 9 real estate records are essential to the creation and transfer
1 10 of such interests. The methods of electronic commerce have
1 11 developed to a degree of sophistication that will allow for a
1 12 speedier, more efficient, and more secure system of real
1 13 estate records for the state of Iowa than currently exists.
1 14 The purpose of this chapter is to provide for an electronic
1 15 recording system applicable to all documents that create or
1 16 transfer interests in real estate located in the state of
1 17 Iowa.
1 18 2. The Iowa electronic recording system, as established in
1 19 this chapter, is intended to function in a uniform manner for
1 20 the recording of all documents relating to real estate located
1 21 in the state. In order to better effectuate that objective,
1 22 this chapter shall be interpreted and enforced in such a
1 23 manner as to accomplish uniform statewide procedures and
1 24 standards for an electronic recording system.
1 25 Sec. 3. NEW SECTION. 558B.3 DEFINITIONS.
1 26 Unless the context clearly indicates otherwise, the
1 27 following terms shall have the following meanings:
1 28 1. "Backup" means information in the Iowa electronic
1 29 recording system that is duplicated and saved in order to
1 30 provide a source from which the information may be replicated
1 31 and reentered into the Iowa electronic recording system should
1 32 it suffer a loss of information. A backup may consist of more
1 33 than one system of duplication and security.
1 34 2. "Centralized system" means the centralized electronic
1 35 recording system, comprised of all the components of such
2 1 system, including the information, databases, hardware, and
2 2 software, maintained by the office of the secretary of state
2 3 for the storage and recording of all documents affecting real
2 4 estate located in the state.
2 5 3. "Confirmation of recording" means the transmittal made
2 6 to the county recorder and parties to a document after the
2 7 document has been recorded and indexed in the centralized
2 8 system.
2 9 4. "Correction entry" means an entry made pursuant to
2 10 section 558B.9.
2 11 5. "County recording system" means the county electronic
2 12 recording system maintained by a county in the state,
2 13 comprised of all the components of such system, including the
2 14 information, databases, hardware, and software.
2 15 6. "Document" means any instrument, in either electronic
2 16 or paper form, that creates, transfers, asserts, or explains
2 17 an interest in real estate. A document includes a deed,
2 18 patent, mortgage, will, lien instrument, grant of easement,
2 19 affidavit, court order or decree, notice, orders of fence
2 20 viewers, and any other instrument that affects an interest in
2 21 real estate.
2 22 7. "Document information memorandum" means a memorandum
2 23 which shall be in a format prescribed by the secretary of
2 24 state by rule, summarizing the contents of the accompanying
2 25 paper document.
2 26 8. "Electronic" means technology having electrical,
2 27 digital, magnetic, wireless, optical, electromagnetic, or
2 28 similar capabilities.
2 29 9. "Electronic document" means a document that is created,
2 30 generated, sent, communicated, received, or stored by
2 31 electronic means and that contains the information described
2 32 in section 558B.7, subsection 2.
2 33 10. "Electronic land records index" means an index created
2 34 pursuant to section 558B.5.
2 35 11. "Electronic signature" means an electronic sound,
3 1 symbol, or process, attached to or logically associated with
3 2 an electronic document and executed or adopted by a person
3 3 with the intent to sign the electronic document.
3 4 12. "Index information" means information required
3 5 pursuant to section 558B.5.
3 6 13. "Iowa electronic recording system" means a system
3 7 which includes, but is not limited to, the information,
3 8 databases, hardware, and software, that form the statewide
3 9 electronic recording system established by this chapter. It
3 10 includes all components of both the centralized system and the
3 11 county recording systems.
3 12 14. "Paper document" means a document printed on paper
3 13 that contains the information described in section 558B.7,
3 14 subsection 3.
3 15 15. "Parcel identifier number" is the identification
3 16 number assigned to a parcel of real estate pursuant to section
3 17 558B.6.
3 18 16. "Parties to a document" means parties to an interest
3 19 in real estate transferred, asserted, or explained in a
3 20 document.
3 21 17. "Status of the parties to the document" means the
3 22 marital, corporate, partnership, or other legal status of the
3 23 persons or entities who are parties to the document.
3 24 Sec. 4. NEW SECTION. 558B.4 IOWA ELECTRONIC RECORDING
3 25 SYSTEM – STRUCTURE.
3 26 1. The secretary of state shall establish and maintain a
3 27 centralized electronic recording system for all documents
3 28 affecting real estate in the state. The system shall consist
3 29 of the electronic document record and the electronic land
3 30 records index as described in section 558B.5. After a
3 31 document is entered in the county recording system by the
3 32 county recorder, it shall be transmitted electronically to the
3 33 centralized system where it shall be stored in the electronic
3 34 document record and indexed in the electronic land records
3 35 index.
4 1 2. Except as otherwise provided in this chapter, the entry
4 2 of each document into the Iowa electronic recording system
4 3 shall be performed by the county recorder of the county where
4 4 the real estate is located. Such entry shall be made on a
4 5 terminal in the county recorder's office that is linked with
4 6 the centralized system.
4 7 3. Each county shall establish a county recording system.
4 8 The state shall provide the initial funds to establish the
4 9 county recording system, which shall thereafter be maintained
4 10 by the county recorder. Any updates or changes to the
4 11 hardware or software of the county recording system shall be
4 12 compatible with the centralized system. A duplicate copy of
4 13 the documents in the electronic document record and the
4 14 information in the electronic land records index pertaining to
4 15 real estate located in that county, as stored in the
4 16 centralized system, shall be stored in the county recording
4 17 system. Such information shall be sent electronically by the
4 18 secretary of state to the county recording system after the
4 19 document has been recorded and indexed in the centralized
4 20 system.
4 21 4. The electronic document record and the electronic land
4 22 records index in the centralized system shall be backed up on
4 23 a daily basis or at more frequent intervals as determined by
4 24 the secretary of state. At least one copy of the regular
4 25 backup shall be stored at a secure site that is physically
4 26 separate from the location of the centralized system. The
4 27 secretary of state shall take such other measures as may be
4 28 necessary to protect the centralized system against the loss
4 29 of documents in the electronic document record and the index
4 30 information in the electronic land records index. It shall
4 31 also take such measures as may be necessary to protect the
4 32 centralized system from access or tampering by unauthorized
4 33 persons.
4 34 5. Except during periods of routine or necessary
4 35 maintenance, the data in the centralized system shall be
5 1 accessible twenty-four hours per day, seven days per week to
5 2 persons searching the system for real estate information. The
5 3 secretary of state shall maintain and update the system to
5 4 assure speedy access and functionality.
5 5 Sec. 5. NEW SECTION. 558B.5 ELECTRONIC DOCUMENT RECORD
5 6 – ELECTRONIC LAND RECORDS INDEX.
5 7 1. The electronic document record shall contain an
5 8 electronic version of each real estate document that is
5 9 recorded in the state. Each electronic version of a document
5 10 shall be linked to the index information in the electronic
5 11 land records index that references the document.
5 12 2. The electronic land records index shall contain the
5 13 index information for each document creating, transferring,
5 14 asserting, or explaining any interest in real estate that is
5 15 recorded in the centralized system. The index information
5 16 shall include the following:
5 17 a. The parcel identifier number of the real estate, to the
5 18 extent not inconsistent with state or federal law.
5 19 b. The address of the real estate, as contained in the
5 20 real estate tax records, to the extent available.
5 21 c. The names of the parties to the document.
5 22 d. The status of the parties to the document, to the
5 23 extent that information is required by state or federal law.
5 24 "Status of the parties to the document" means the marital,
5 25 corporate, partnership, or other legal status of the persons
5 26 or entities who are parties to the document.
5 27 e. The date the document was executed.
5 28 f. Such other information as shall be determined by the
5 29 secretary of state by rule.
5 30 Each entry in the electronic land records index shall be
5 31 linked to the document that the entry references in the
5 32 electronic document record.
5 33 Sec. 6. NEW SECTION. 558B.6 UNIFORM PARCEL IDENTIFIER
5 34 SYSTEM.
5 35 1. Each separately described parcel of real estate located
6 1 in the state shall be assigned a unique parcel identifier
6 2 number. The parcel identifier number shall be a number
6 3 beginning with the two-digit number assigned the county based
6 4 on its alphabetical order and followed by a number that is
6 5 unique to each parcel of real estate located in that county.
6 6 The parcel identifier number may be any combination of numbers
6 7 and letters that provides for a system of unique
6 8 identification. In order to assure a uniform system of parcel
6 9 identifier numbers, the numbering system employed in each
6 10 county shall be approved by the secretary of state.
6 11 2. The county recorder shall ascertain each separately
6 12 described parcel of real estate existing in the county on July
6 13 1, 2001, and shall assign a parcel identifier number to the
6 14 parcel. The parcel identifier number is deemed to incorporate
6 15 the parcel's legal description existing in the county's land
6 16 records on the date of the assignment of the number. All
6 17 subsequent transfers of the parcel shall refer to the parcel
6 18 identifier number.
6 19 3. If the legal description of a parcel of real estate
6 20 should be changed, whether by agreement of the parties or by
6 21 operation of law, the county recorder shall assign a new
6 22 parcel identifier number to the parcel. Any document forming
6 23 the basis of the change shall be recorded in the Iowa
6 24 electronic recording system. The title history of the parcel
6 25 shall include the prior parcel identifier number for the
6 26 period prior to the date of the assignment of the new number.
6 27 4. If a parcel of real estate is subdivided, the county
6 28 recorder shall assign a new parcel identifier number to each
6 29 subdivided parcel. Any document necessary to complete the
6 30 subdivision shall be recorded in the Iowa electronic recording
6 31 system. The title history of each subdivided parcel shall
6 32 include the title history of the parcel from which it was
6 33 subdivided for the period prior to the subdivision.
6 34 5. If a parcel of real estate is assembled from combining
6 35 two or more existing parcels, the county recorder shall assign
7 1 a new parcel identifier number to the newly-formed parcel.
7 2 The document declaring and identifying the new parcel,
7 3 together with any other document relating to formation of the
7 4 new parcel, shall be recorded in the Iowa electronic recording
7 5 system. The title history of the new parcel shall include the
7 6 title history of each parcel from which the new parcel was
7 7 formed for the period prior to the formation.
7 8 Sec. 7. NEW SECTION. 558B.7 RECORDING PROCESS.
7 9 1. Information regarding an interest in real estate shall
7 10 not be entered into the Iowa electronic recording system
7 11 unless the information is based on a document submitted and
7 12 entered into the Iowa electronic recording system. The
7 13 document shall also include or be accompanied by the address
7 14 to which tax statements for the real estate shall be sent, a
7 15 declaration of value statement, a groundwater hazard
7 16 statement, and any other documents required by law.
7 17 2. a. The electronic document shall contain the index
7 18 information for the electronic document in electronic format,
7 19 electronic body text, an electronic signature, and electronic
7 20 graphical information, if appropriate.
7 21 b. Except as otherwise provided in this chapter, the
7 22 electronic document shall be submitted to the county recorder
7 23 of the county where the real estate is located. The county
7 24 recorder shall review the electronic document to ascertain
7 25 that the electronic document contains the appropriate index
7 26 information and electronic signatures. In accordance with
7 27 procedures established by the secretary of state by rule, the
7 28 county recorder shall also review any electronic signature in
7 29 the document to assure, to the extent possible, that the
7 30 electronic signature is a valid electronic signature. As soon
7 31 as the county recorder has ascertained compliance with the
7 32 requirements of paragraph "a", the county recorder shall enter
7 33 the electronic document into the Iowa electronic recording
7 34 system.
7 35 c. The acceptable formats for any electronic document and
8 1 the technological processes and certifying authorities for any
8 2 electronic signature shall be determined by the secretary of
8 3 state by rule. The secretary of state shall only approve
8 4 formats for electronic documents and technological processes
8 5 and certifying authorities for electronic signatures as are
8 6 capable of assuring that the party indicated to have signed
8 7 the electronic document is the party who actually signed the
8 8 electronic document, and the electronic document and its
8 9 electronic signature have not been changed after execution.
8 10 3. a. A paper document shall contain the index
8 11 information for the paper document, body text, any required
8 12 signatures, an acknowledgment, and graphical information, if
8 13 appropriate. Each paper document shall be accompanied by a
8 14 document information memorandum. The format, font, and type
8 15 size of the document information memorandum shall be
8 16 prescribed by the secretary of state by rule.
8 17 b. Except as otherwise provided in this chapter, the paper
8 18 document and the document information memorandum shall be
8 19 submitted to the county recorder of the county where the real
8 20 estate is located. The county recorder shall immediately
8 21 ascertain that the paper document and the document information
8 22 memorandum contain the appropriate index information,
8 23 signatures, and acknowledgement. As soon as the county
8 24 recorder has ascertained compliance with the requirements of
8 25 paragraph "a", the recorder shall make a copy of the document
8 26 information memorandum in an electronic text format by means
8 27 of a scanner or other appropriate device. The recorder shall
8 28 also make a copy of the paper document in a computer graphics
8 29 format. The recorder shall create a combined electronic
8 30 version of the paper document by attaching the computer
8 31 graphics version of the paper document to the electronic text
8 32 version of the document information memorandum. The county
8 33 recorder shall keep the original paper document and the
8 34 document information memorandum until the electronic recording
8 35 process is completed. As soon as the county recorder has
9 1 created the combined electronic version of the paper document,
9 2 the recorder shall enter the index information and the
9 3 combined electronic version of the paper document into the
9 4 Iowa electronic recording system.
9 5 The technology and format for the electronic text, computer
9 6 graphics, and attachment process shall be prescribed by the
9 7 secretary of state by rule. The technology and format must
9 8 assure that the combined electronic version of the paper
9 9 document has not been changed after the electronic version is
9 10 transmitted by the county recorder.
9 11 Sec. 8. NEW SECTION. 558B.8 RECORDING – CENTRALIZED
9 12 SYSTEM.
9 13 1. An electronic document or combined electronic version
9 14 of a paper document, as described in section 558B.7,
9 15 subsections 2 and 3, shall be electronically transmitted from
9 16 the county recorder's office to the centralized system. The
9 17 index information shall be entered in the electronic land
9 18 records index in the centralized system. The electronic
9 19 document or combined electronic version of the paper document
9 20 shall be stored in the electronic document record in the
9 21 centralized system. After the document has been recorded and
9 22 indexed in the centralized system, the recording of the
9 23 document shall be complete and the recording shall constitute
9 24 constructive notice to all persons as provided in section
9 25 558B.17.
9 26 2. A duplicate copy of the document and index information
9 27 as recorded in the centralized system shall be electronically
9 28 transmitted by the secretary of state to the county recording
9 29 system upon the completion of the recording and indexing
9 30 process in the centralized system. The county recording
9 31 system shall be considered supplemental to the centralized
9 32 system and shall not have any effect on the constructive
9 33 notice given by the information contained in the centralized
9 34 system.
9 35 3. Upon the completion of the recording and indexing
10 1 process in the centralized system, the secretary of state
10 2 shall electronically transmit a confirmation of recording to
10 3 the county recorder of the county where the real estate is
10 4 located. The confirmation of recording shall contain the date
10 5 and time of the completion of recording along with summary
10 6 information about the recorded document. The format of the
10 7 confirmation of recording and the summary information content
10 8 shall be determined by the secretary of state by rule. At the
10 9 same time that the confirmation of recording is sent to the
10 10 county recorder, the secretary of state shall also send a copy
10 11 of the confirmation of recording to the parties to, or
10 12 affected by, the recorded document. The confirmation of
10 13 recording sent to the parties may be sent electronically or by
10 14 regular mail, depending on the information provided to the
10 15 secretary of state.
10 16 Sec. 9. NEW SECTION. 558B.9 CORRECTING ENTRY.
10 17 If an error occurs in the recording process and requires a
10 18 correction either to the document as contained in the
10 19 electronic document record or to the index information
10 20 contained in the electronic land records index, the correction
10 21 may only be made by means of a correcting entry. The
10 22 correcting entry may be executed by the county recorder from
10 23 whom the document originated or by the secretary of state.
10 24 The correcting entry is a document that contains any
10 25 corrections to the recorded document or index information that
10 26 may be necessary to conform the recorded document or index
10 27 information to the original document. The correcting entry
10 28 shall be stored in the electronic document record and shall be
10 29 entered in the electronic land records index in such a way as
10 30 to link the correcting entry to both the original parcel or
10 31 parties and the corrected parcel or parties. The county
10 32 recorder or the secretary of state may execute the correcting
10 33 entry without the prior consent of the parties affected by the
10 34 correcting entry, but the county recorder or secretary of
10 35 state shall immediately give the parties notice of the
11 1 correcting entry. The parties may make an objection to the
11 2 correcting entry in an appropriate document and the document
11 3 shall be recorded and indexed in the Iowa electronic recording
11 4 system. The secretary of state shall electronically transmit
11 5 a copy of the recorded correcting entry and its index
11 6 information, and a copy of any recorded objection and the
11 7 objection's index information, if any, as stored in the
11 8 centralized system to the county recording system upon
11 9 completion of the recording and indexing process in the
11 10 centralized system.
11 11 Sec. 10. NEW SECTION. 558B.10 UNIFORM COMMERCIAL CODE
11 12 REAL ESTATE FILINGS.
11 13 The filing of documents creating, transferring, or
11 14 terminating security interests that affect a parcel of real
11 15 estate under Article 9 of the Iowa uniform commercial code
11 16 shall be coordinated with the provisions of this chapter. The
11 17 secretary of state shall establish and maintain a centralized
11 18 electronic document record and index system for electronic
11 19 security interests. Such documents creating, transferring, or
11 20 terminating security interests shall be submitted either in
11 21 electronic format, or in paper format and converted to
11 22 electronic format, as provided in this chapter. If the
11 23 document is filed with the county recorder, the county
11 24 recorder shall transmit the electronic document or an
11 25 electronic version of the paper document to the secretary of
11 26 state where the document shall be recorded and indexed in the
11 27 centralized electronic security interest system. If the
11 28 document is filed with the secretary of state, the document
11 29 shall be recorded and indexed in the centralized electronic
11 30 security interest system. In either case, the information
11 31 contained in the centralized electronic security interest
11 32 system shall be indexed in such a fashion that a search of the
11 33 Iowa electronic recording system will disclose the creation,
11 34 transfer, or termination of the security interest.
11 35 Implementation of this system shall be performed by the
12 1 secretary of state in order to further the purposes of
12 2 providing speedy, efficient, and secure information concerning
12 3 real estate in a uniform fashion.
12 4 Sec. 11. NEW SECTION. 558B.11 TAXES AND FEES.
12 5 1. Persons recording a document in the Iowa electronic
12 6 recording system shall pay the applicable fees and taxes,
12 7 including the auditor's transfer fee as provided in section
12 8 331.507, subsection 2, paragraph "a", the general recording
12 9 and filing fee as provided in section 331.604, the document
12 10 management fee as provided in section 331.605A, and an Iowa
12 11 electronic recording system fee in the amount of five dollars.
12 12 The applicable taxes shall include the real estate transfer
12 13 tax as provided in section 428A.1.
12 14 2. A person recording an electronic document shall have an
12 15 account established with the office of the secretary of state.
12 16 The secretary of state shall issue a person an account and
12 17 password upon demonstration of financial ability to pay the
12 18 filing fees and taxes for documents recorded under authority
12 19 of the account.
12 20 3. A person recording a paper document shall pay the
12 21 applicable fees and taxes to the county recorder where the
12 22 paper document is filed.
12 23 4. The fees and taxes collected under this section shall
12 24 be allocated among the various counties and the office of the
12 25 secretary of state in accordance with law.
12 26 Sec. 12. NEW SECTION. 558B.12 SEARCHING FOR REAL ESTATE
12 27 INFORMATION.
12 28 1. a. A person may search for real estate information in
12 29 the Iowa electronic recording system by establishing access to
12 30 the centralized system in the office of the secretary of
12 31 state. A search of the electronic land records index may be
12 32 performed based on a parcel identifier number, a grantor or
12 33 grantee in a document, or the address of the real estate, if
12 34 available. A search of the electronic land records index for
12 35 lien information may be performed based on a parcel identifier
13 1 number, name of the record owner of the real estate, or the
13 2 address of the real estate, if available. Such searches shall
13 3 disclose the index information contained in the electronic
13 4 land records index pertaining to the search criteria. If a
13 5 searcher also requests a copy of any document to which the
13 6 index information is linked, the requested document shall be
13 7 supplied on-line and may be printed by the searcher or, at the
13 8 request of the searcher, may be supplied in any other format
13 9 provided by the secretary of state.
13 10 b. The secretary of state shall establish a process by
13 11 which the electronic document record may be searched for
13 12 words, terms, and information not available in an index search
13 13 as described in paragraph "a". The information disclosed in
13 14 such a search shall be supplied to the searcher on-line and
13 15 may be printed by the searcher. If the searcher requests a
13 16 copy of any document disclosed by the search, the document
13 17 shall be supplied on-line and may be printed by the searcher
13 18 or, at the request of the searcher, may be supplied in any
13 19 other format provided by the secretary of state. By rule, the
13 20 secretary of state shall establish fees for both the search
13 21 and document delivery.
13 22 2. a. A person may establish personal access to the
13 23 centralized system by having an account and a password issued
13 24 by the secretary of state. Viewing of the index information
13 25 and real estate documents on-line shall be at no cost to the
13 26 searcher. If a searcher should also request a copy of any
13 27 document, such copy shall be subject to a uniform fee as
13 28 determined by the secretary of state by rule. The secretary
13 29 of state shall issue a person an account and password upon
13 30 demonstration of financial ability to pay the fees incurred
13 31 under authority of the account and password.
13 32 b. A person may establish access to the centralized system
13 33 by using a public terminal in a county recorder's office. The
13 34 account and password for each public terminal shall be issued
13 35 to the county recorder for use in the county recorder's
14 1 office. The use of a public terminal is subject to the
14 2 supervision of the county recorder. Viewing of the document
14 3 and index information on-line at the county recorder's office
14 4 shall be at no cost to the searcher. If a searcher should
14 5 also request a copy of any document, such copy shall be
14 6 subject to a uniform fee as determined by the secretary of
14 7 state by rule.
14 8 Sec. 13. NEW SECTION. 558B.13 PRIOR PAPER RECORDS –
14 9 TITLE GUARANTY CERTIFICATE.
14 10 1. A person holding or acquiring an interest in real
14 11 estate on or after July 1, 2001, may obtain a title guaranty
14 12 certificate for the real estate from the title guaranty
14 13 division of the Iowa finance authority. The first such
14 14 certificate issued to a person acquiring an interest in real
14 15 estate on or after July 1, 2001, shall assure the current
14 16 owner, and all subsequent good faith purchasers acquiring an
14 17 interest in the real estate from or through the current owner,
14 18 that no enforceable adverse interests or claims exist
14 19 affecting the real estate that were created or transferred by
14 20 a document recorded prior to July 1, 2001, unless such adverse
14 21 interest or claim is noted in the title guaranty certificate.
14 22 A subsequent good faith purchaser acquiring an interest in the
14 23 real estate shall not include a title insurer, examiner, or
14 24 searcher.
14 25 2. The title guaranty division shall record in the Iowa
14 26 electronic recording system a notice of title guaranty
14 27 certificate for the first title guaranty certificate issued on
14 28 or after July 1, 2001. The notice of title guaranty
14 29 certificate shall include a brief summary of the title
14 30 information that the title guaranty division reports to the
14 31 certificate holder regarding transactions recorded prior to
14 32 July 1, 2001. A person holding an adverse interest in, or
14 33 claim to, the real estate that was created or transferred by a
14 34 document recorded prior to July 1, 2001, shall record a
14 35 document in the Iowa electronic recording system, or commence
15 1 an action asserting such interest or claim within ten years
15 2 after the recording of the notice of title guaranty
15 3 certificate. When more than ten years has transpired after
15 4 the date of the recording of the notice of title guaranty
15 5 certificate, with no document having been recorded in the Iowa
15 6 electronic recording system, or no action having been
15 7 commenced asserting an adverse interest or claim that was
15 8 created or transferred by a document recorded prior to July 1,
15 9 2001, the adverse interest or claim shall no longer be valid
15 10 or enforceable and an action based upon such interest or claim
15 11 shall not be maintained in a court, either in law or in
15 12 equity.
15 13 Sec. 14. NEW SECTION. 558B.14 REAL ESTATE RECOVERY FUND.
15 14 1. A real estate recovery fund is created in the office of
15 15 the state treasurer to provide a source of compensation for
15 16 any person who may suffer a loss because of any deficiency in
15 17 the electronic procedures of the Iowa electronic recording
15 18 system. A uniform fee in the amount of one dollar shall be
15 19 charged by the secretary of state and paid by the title
15 20 guaranty certificate holder. Fees collected shall be placed
15 21 in the fund and are available to pay claims made under this
15 22 section. Moneys in the fund shall not revert to the general
15 23 fund and interest on the moneys in the fund shall not accrue
15 24 to the general fund.
15 25 2. In order to recover from the fund, the person alleging
15 26 a loss must establish, to the satisfaction of the secretary of
15 27 state, that the interest or claim was valid, was properly
15 28 filed, and would have placed a purchaser on constructive
15 29 notice of the asserted adverse interest or claim had the
15 30 deficiency not occurred.
15 31 3. The maximum recovery from the fund to all persons
15 32 regarding a single transaction, whether consisting of one or
15 33 more documents, shall be three hundred thousand dollars. The
15 34 recovery shall be limited to actual compensatory damages and
15 35 shall not include punitive damages, costs of litigation, or
16 1 attorney fees.
16 2 Sec. 15. NEW SECTION. 558B.15 RULES.
16 3 The secretary of state may adopt rules pursuant to chapter
16 4 17A to administer this chapter. The rules shall be designed
16 5 to promote a uniform system of real estate information
16 6 throughout the state.
16 7 Sec. 16. NEW SECTION. 558B.16 REAL ESTATE RECORDS
16 8 DIRECTOR.
16 9 1. The position of real estate records director is
16 10 established in the office of the secretary of state. The real
16 11 estate records director shall report to, and be responsible
16 12 to, the secretary of state.
16 13 2. The real estate records director may issue opinions
16 14 based on this chapter and the rules adopted pursuant to this
16 15 chapter. The opinions shall be for the purpose of resolving
16 16 issues concerning the interpretation of this chapter and
16 17 application of the Iowa electronic recording system.
16 18 3. a. The secretary of state may delegate to the real
16 19 estate records director the authority to adopt rules to
16 20 administer this chapter. The secretary of state may also
16 21 delegate to the real estate records director the authority to
16 22 enforce the provisions of this chapter and the rules adopted
16 23 pursuant to this chapter.
16 24 b. The secretary of state may delegate to the real estate
16 25 records director such other authority and duties as the
16 26 secretary deems appropriate.
16 27 Sec. 17. NEW SECTION. 558B.17 NOTICE RECORDING STATUTE.
16 28 1. A document is of no validity against subsequent
16 29 purchasers for a valuable consideration, without notice, or
16 30 against the state or any of its political subdivisions during
16 31 and after condemnation proceedings against the real estate,
16 32 unless the document is recorded in the Iowa electronic
16 33 recording system, as provided in this chapter. Upon the
16 34 completion of the recording and indexing process in the
16 35 centralized system, as provided in section 558A.8, the
17 1 document shall be deemed recorded and shall be deemed to give
17 2 constructive notice to all persons acquiring an interest in
17 3 the real estate affected by the document.
17 4 2. The constructive notice provided by a recorded document
17 5 under subsection 1 is limited to a document disclosed by a
17 6 search of the electronic land records index as provided in
17 7 section 558A.12.
17 8 Sec. 18. NEW SECTION. 558B.18 COORDINATION WITH OTHER
17 9 ELECTRONIC SYSTEMS.
17 10 In accordance with rules adopted by the secretary of state,
17 11 the Iowa electronic recording system may be coordinated with
17 12 cadastral or geographic information systems currently existing
17 13 or subsequently implemented in the state. However, the
17 14 information contained in the Iowa electronic recording system
17 15 shall not be changed or modified as the result of any such
17 16 coordination.
17 17 Sec. 19. APPLICABILITY. This Act shall apply to documents
17 18 filed on or after the effective date of this Act. Records of
17 19 paper documents filed with the county recorder prior to the
17 20 effective date of this Act shall continue to be maintained by
17 21 the county recorder.
17 22 EXPLANATION
17 23 This bill creates the Iowa electronic recording system to
17 24 provide uniform statewide procedures and standards for
17 25 recording of documents relating to real estate. The Iowa
17 26 electronic recording system is comprised of the county
17 27 recording system and the centralized recording system. The
17 28 bill establishes the county recording system and provides that
17 29 each county recording system is to be linked to the
17 30 centralized electronic recording system maintained by the
17 31 office of secretary of state. The bill requires each county
17 32 recorder to enter real estate documents recorded with the
17 33 recorder into the Iowa electronic recording system.
17 34 The bill provides that the centralized recording system
17 35 contain electronic document record and an electronic land
18 1 records index. The electronic document record contains an
18 2 electronic version of each real estate document filed in the
18 3 state. The electronic land records index contains specific
18 4 information relating to the real estate document. The bill
18 5 requires the office of secretary of state to back up the
18 6 centralized system on a daily basis or more frequently as
18 7 determined by the secretary of state.
18 8 The bill provides that each separate parcel of real estate
18 9 in the state shall be assigned a parcel identifier number.
18 10 The numbering system employed by each county must be approved
18 11 by the secretary of state. New parcel identifier numbers are
18 12 to be assigned to parcels newly created by subdivision or
18 13 assemblage of two or more parcels or if the legal description
18 14 of a parcel has changed.
18 15 The bill requires that paper documents filed with the
18 16 county recorder are to be scanned into an electronic text
18 17 format and a computer graphics format for entry into the
18 18 electronic recording system. The recorder is to retain the
18 19 paper version of the documents until the electronic recording
18 20 process is completed.
18 21 The bill allows the county recorder or the secretary of
18 22 state to execute correcting entries in the electronic
18 23 recording system if an error occurs in the recording system
18 24 requiring correction to either the electronic document record
18 25 or to the electronic land records index.
18 26 The bill requires that documents creating, transferring, or
18 27 terminating interests that affect real estate under the
18 28 uniform commercial code be coordinated with the Iowa
18 29 electronic recording system.
18 30 The bill establishes an Iowa electronic recording system
18 31 fee in the amount of $5, payable through an account
18 32 established in the office of secretary of state.
18 33 The bill provides that persons may search for real estate
18 34 information by establishing access to the centralized
18 35 recording system in the office of secretary of state. The
19 1 secretary of state may establish, by rule, fees for search and
19 2 document delivery. The bill allows a person to establish
19 3 subscription access for searching in the centralized system.
19 4 The bill provides that a person acquiring an interest in
19 5 real estate on or after July 1, 2001, may obtain a title
19 6 guaranty certificate from the title guaranty division of the
19 7 Iowa finance authority. The title guaranty certificate
19 8 assures the owner and all subsequent good faith purchasers
19 9 that no enforceable adverse interests or claims exist
19 10 affecting the real estate. The bill requires the title
19 11 guaranty division to record a notice of title guaranty
19 12 certificate in the Iowa electronic recording system. If no
19 13 adverse interest or claim is recorded in the system within 10
19 14 years of recording the notice of title guaranty certificate,
19 15 the adverse interest or claim is no longer valid.
19 16 The bill establishes the real estate recovery fund in the
19 17 office of the treasurer of state to provide compensation for a
19 18 person who may suffer a loss because of a deficiency in the
19 19 electronic procedures of the Iowa electronic recording system.
19 20 A $1 fee is imposed by the secretary of state for deposit in
19 21 the fund. Moneys, and interest from moneys, in the fund shall
19 22 not revert to the general fund. The maximum recovery from the
19 23 fund is $300,000.
19 24 The bill creates the position of real estate records
19 25 director in the office of the secretary of state. The real
19 26 estate records director has authority to issue opinions for
19 27 the purpose of resolving issues relating to the bill and
19 28 application of the Iowa electronic recording system.
19 29 The bill provides that recording in the Iowa electronic
19 30 recording system is constructive notice to all persons
19 31 acquiring an interest in the real estate.
19 32 The bill applies to documents filed on or after July 1,
19 33 2001.
19 34 LSB 1558XC 79
19 35 sc/pj/5
Text: SSB01166 Text: SSB01168 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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