House File 754 - Introduced HOUSE FILE BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 280) Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to a homestead exemption waiver notice contained 2 in a written contract affecting agricultural land. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2826HV 81 5 rh/pj/5 PAG LIN 1 1 Section 1. Section 561.22, Code 2005, is amended to read 1 2 as follows: 1 3 561.22 NOTICE OF HOMESTEAD EXEMPTION WAIVER REQUIREMENT. 1 4 1. a.IfExcept as otherwise provided in subsection 2, if 1 5 a homestead exemption waiver is contained in a written 1 6 contract affecting agricultural land as defined in section 1 7 9H.1, or dwellings, buildings, or other appurtenances located 1 8 on the land, the contract must contain a statement in 1 9 substantially the following form, in boldface type of a 1 10 minimum size of ten points, and be signed and dated by the 1 11 person waiving the exemption at the time of the execution of 1 12 the contract: "I understand that homestead property is in 1 13 many cases protected from the claims of creditors and exempt 1 14 from judicial sale; and that by signing this contract, I 1 15 voluntarily give up my right to this protection for this 1 16 property with respect to claims based upon this contract." 1 17 b. A principal or deputy state, county, or city officer 1 18 shall not be required to waive the officer's homestead 1 19 exemption in order to be bonded as required pursuant to 1 20 chapter 64. 1 21 2. This section shall not apply to real estate affecting 1 22 agricultural land of less than forty acres. 1 23 Sec. 2. HOMESTEAD EXEMPTION WAIVER == APPLICABILITY. If 1 24 a holder of legal or equitable title to real estate affecting 1 25 agricultural land, or dwellings, buildings, or other 1 26 appurtenances located on the land, conveyed less than forty 1 27 acres of such real estate by written contract prior to July 1, 1 28 2005, and such written contract was not executed in compliance 1 29 with the requirements of section 561.22, Code 2005, the holder 1 30 is deemed to have waived the right to have the holder's 1 31 homestead exempt from judicial sale unless suit is brought 1 32 within one year from July 1, 2005, by the holder or the 1 33 holder's representative to determine the effect of the written 1 34 contract upon the real estate or any interest in the real 1 35 estate. 2 1 EXPLANATION 2 2 This bill relates to a homestead exemption waiver contained 2 3 in a written contract affecting agricultural land. 2 4 The bill provides that a required homestead exemption 2 5 waiver notice contained in a written contract affecting 2 6 agricultural land, or dwellings, buildings, or other 2 7 appurtenances located on the land, shall not apply to a 2 8 written contract affecting less than 40 acres of such land. 2 9 The bill further provides in session law that if a holder 2 10 of legal or equitable title to such land conveyed less than 40 2 11 acres of such land prior to July 1, 2005, and the written 2 12 contract was not executed in compliance with the waiver 2 13 requirements of section 561.22, Code 2005, the holder is 2 14 deemed to have waived the right to have the holder's homestead 2 15 exempt from judicial sale, unless suit is brought within one 2 16 year from July 1, 2005, by the holder or the holder's 2 17 representative to determine the effect of the written contract 2 18 upon the real estate or any interest in the real estate. 2 19 LSB 2826HV 81 2 20 rh:rj/pj/5