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.  If Except 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