House Study Bill 150



                                   HOUSE FILE       
                                   BY  (PROPOSED COMMITTEE ON
                                        LOCAL GOVERNMENT BILL BY
                                        CHAIRPERSON VAN ENGELENHOVEN)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the duties of county recorders and county
  2    auditors concerning instruments affecting real estate.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1568YC 81
  5 sc/gg/14

PAG LIN



  1  1    Section 1.  Section 331.602, subsection 5, Code 2005, is
  1  2 amended by striking the subsection.
  1  3    Sec. 2.  Section 331.603, subsection 3, Code 2005, is
  1  4 amended to read as follows:
  1  5    3.  The recorder may reproduce in miniature on a durable
  1  6 medium any instrument to be recorded.  When a recorded
  1  7 instrument involves a release, or assignment, or other
  1  8 subsequent reference to an original document, the separate
  1  9 instrument filed acknowledging the release, or assignment, or
  1 10 other subsequent reference shall be reproduced.  In lieu of
  1 11 marginal entries, the recorder shall make notations on both
  1 12 the index and the record of the original instrument cross=
  1 13 reference the release, assignment, or other subsequent
  1 14 reference with the record of the original document.  When an
  1 15 official record is produced in miniature, a security copy
  1 16 shall be reproduced at the same time and kept outside of the
  1 17 courthouse.
  1 18    Sec. 3.  Section 458A.22, Code 2005, is amended to read as
  1 19 follows:
  1 20    458A.22  DUTY TO HAVE FORFEITED LEASE RELEASED == AFFIDAVIT
  1 21 OF NONCOMPLIANCE == NOTICE TO LANDOWNER == REMEDIES.
  1 22    1.  When any oil, gas, or metallic mineral lease given on
  1 23 land situated in Iowa and recorded, becomes forfeited by
  1 24 failure of the lessee to comply with its provisions or the
  1 25 Iowa law, the lessee shall, within sixty days after date of
  1 26 forfeiture of the lease, have the lease surrendered in
  1 27 writing, duly acknowledged, and placed on record in the county
  1 28 where the leased land is situated, or the lease may be
  1 29 released by a marginal release on margin of the record without
  1 30 cost to the owner of land described in the lease.  If the
  1 31 lessee fails to execute and record a release of the recorded
  1 32 lease within the time provided for, the owner of the land may
  1 33 execute and file with the recorder of the counties in which
  1 34 the forfeited lease has been recorded an affidavit of
  1 35 noncompliance in substantially the following form:
  2  1                   AFFIDAVIT OF NONCOMPLIANCE
  2  2 State of Iowa            )
  2  3 County of ......         ) ss.
  2  4    ......., being first duly sworn, upon oath deposes and says
  2  5 that the deponent is ...... as referred to in an (oil and gas)
  2  6 (metallic mineral) mining lease dated the ... day of ......
  2  7 (month), .... (year), which lease is recorded in Volume ...,
  2  8 Page ..., or as Instrument # ... of the County Records of
  2  9 ...... County, ..., and which lease covers the following
  2 10 described lands: ..............................................
  2 11 ...............................................................
  2 12    And further, deponent says that on the ... day of ......
  2 13 (month), .... (year), under the terms of said lease, there
  2 14 should have been paid to the deponent or deposited to the
  2 15 deponent's credit in the ........  Bank of ........ the sum of
  2 16 ....  Dollars ($....), the payment of which was necessary in
  2 17 order to keep the above described lease in force and effect.
  2 18 Deponent hereby swears the above payment has never been made
  2 19 to the deponent or the deponent's representatives, in money or
  2 20 otherwise, nor has same been deposited to the deponent's
  2 21 credit in the above bank.
  2 22    And further, deponent says that there has been no drilling
  2 23 or development of any nature or kind whatsoever done on the
  2 24 land covered by the lease referred to herein, as called for
  2 25 under the terms of said lease.
  2 26                                            ....................
  2 27                                            ....................
  2 28    Subscribed and sworn to before me, a Notary Public for the
  2 29 State of Iowa, this .... day of ......  (month), ... (year)
  2 30                                            ....................
  2 31                                            Notary Public
  2 32 My commission expires ..........
  2 33                     AFFIDAVIT OF THE BANKER
  2 34 State of ......          )
  2 35 County of ......         ) ss.
  3  1    I, ......, (Cashier) (President) of the ...... Bank of
  3  2 ......, being first duly sworn, upon my oath declare that
  3  3 there has not been deposited to the credit of ...... in the
  3  4 ...... Bank of ......, by ......  or any other party, any sum
  3  5 of money whatsoever, in payment of rental under the terms of
  3  6 the (oil and gas) (metallic mineral) mining lease referred to
  3  7 in this affidavit.
  3  8    Witness my hand this ...... day of ...... (month), ...
  3  9 (year)
  3 10                                            ....................
  3 11                            (Cashier) (President) of ...... Bank
  3 12    Subscribed and sworn to before me, a Notary Public for the
  3 13 State of Iowa on the .... day of ......  (month), ... (year)
  3 14                                            ....................
  3 15                                            Notary Public
  3 16 My commission expires ..........
  3 17    2.  The owner of the land shall retain the original
  3 18 affidavit and shall mail a copy of the affidavit by restricted
  3 19 certified mail, as defined in section 618.15, to the lessee.
  3 20 If the lessee shall, within thirty days after receipt of the
  3 21 filing of such affidavit, give gives notice in writing, by
  3 22 restricted certified mail, to the county recorder of the
  3 23 county where said owner of the land is located that said the
  3 24 lease has not been forfeited and that said the lessee still
  3 25 claims that said the lease is in full force and effect, then
  3 26 the said affidavit shall not be recorded but the county
  3 27 recorder shall notify the owner of the land of the action of
  3 28 the lessee, and the owner of the land shall be entitled to the
  3 29 remedies provided by this chapter for the cancellation of such
  3 30 disputed lease.
  3 31    3.  If the lessee shall does not notify the county recorder
  3 32 owner of the land as above provided in subsection 2, then the
  3 33 county recorder owner shall record said file the original
  3 34 affidavit for recording with the county recorder, and
  3 35 thereafter the record of the said lease shall not be notice to
  4  1 the public of the existence of said the lease or of any
  4  2 interest therein or rights thereunder, and said the record
  4  3 shall not be received in evidence in any court of the state on
  4  4 behalf of the lessee against the lessor, and said the lease
  4  5 shall stand forfeited.
  4  6    Sec. 4.  Section 558.41, subsection 4, Code 2005, is
  4  7 amended to read as follows:
  4  8    4.  TERMINATION OF LIFE ESTATE.  Upon the termination of a
  4  9 life estate interest through the death of the holder of the
  4 10 life estate, any surviving holder or successor in interest
  4 11 shall prepare a change of title or affidavit for tax purposes
  4 12 and delivery of the deed or change of title shall deliver such
  4 13 instrument to the county recorder of the county in which each
  4 14 parcel of real estate is located.
  4 15    Sec. 5.  Section 558.49, Code 2005, is amended to read as
  4 16 follows:
  4 17    558.49  INDEX RECORDS.
  4 18    The recorder must keep index records, arranged
  4 19 alphabetically by grantor and grantee, to show the following:
  4 20    1.  Each grantor.
  4 21    2.  Each grantee.
  4 22    3.  The date and time when the instrument was filed with
  4 23 the recorder.
  4 24    4.  The date of the instrument.
  4 25    5.  The nature of the instrument.
  4 26    6.  The document reference number where the record of the
  4 27 instrument may be found.
  4 28    7.  The description of the real estate conveyed.
  4 29    Sec. 6.  Section 558.57, Code 2005, is amended to read as
  4 30 follows:
  4 31    558.57  ENTRY ON AUDITOR'S TRANSFER BOOKS.
  4 32    The After the recorder shall not record has accepted for
  4 33 recording and indexed any deed, real estate installment
  4 34 contract, or other instrument unconditionally conveying real
  4 35 estate or altering a real estate contract by assigning the
  5  1 buyer's or seller's interest, changing the name of the buyer
  5  2 or seller, changing the legal description of the property,
  5  3 forfeiting or canceling the contract, or making other
  5  4 significant changes, until the auditor shall make the proper
  5  5 entries have been made upon the transfer books in the
  5  6 auditor's office, and endorsement made upon the deed, real
  5  7 estate installment contract, or other instrument properly
  5  8 dated and officially signed, in substantially the following
  5  9 form:.
  5 10    Entered upon transfer books and for taxation this .. day of
  5 11 .... (month), .. (year).  My fee $....  collected by recorder.
  5 12                                            ....................
  5 13                                                        Auditor.
  5 14    Sec. 7.  Section 558.58, subsection 1, Code 2005, is
  5 15 amended to read as follows:
  5 16    1.  At the time of filing a deed, real estate installment
  5 17 contract, or other instrument mentioned in section 558.57, the
  5 18 recorder shall collect from the person filing the deed, real
  5 19 estate installment contract, or instrument, and note payment
  5 20 of, the recording fee provided by law and the auditor's
  5 21 transfer fee, as provided by law, except as provided in
  5 22 subsection 2.  The recorder shall deliver the deed, real
  5 23 estate installment contract, or instrument to the county
  5 24 auditor, after endorsing upon the instrument the following:
  5 25    Filed for record, indexed, and delivered to the county
  5 26 auditor this .. day of .... (month), .. (year), at ....
  5 27 o'clock ..m.
  5 28 Recorder's and auditor's fee $.... paid.
  5 29                                            ....................
  5 30                                                       Recorder.
  5 31    After the recorder has accepted the instrument for
  5 32 recording, the instrument shall be indexed and then delivered
  5 33 to the auditor to be placed on the auditor's transfer books.
  5 34    Sec. 8.  Section 558.60, Code 2005, is amended to read as
  5 35 follows:
  6  1    558.60  TRANSFER AND INDEX BOOKS.
  6  2    The county auditor shall keep in the county auditor's
  6  3 office books for the transfer of real estate, which shall
  6  4 consist of a transfer book, index book, and plat book.  As
  6  5 used in this context, "book" means the method of data storage
  6  6 and retrieval utilized by the county auditor.
  6  7    The auditor shall index the real estate transfers by city,
  6  8 block, and lot or by township, range, section, section
  6  9 quarter, and subdivision, as occasion may require.  The
  6 10 transfer books shall show all of the following:
  6 11    1.  Each grantor.
  6 12    2.  Each grantee.
  6 13    3.  The date and time when the instrument was filed with
  6 14 the county recorder.
  6 15    4.  The date of the instrument.
  6 16    5.  The nature of the instrument.
  6 17    6.  The document reference number where the record of the
  6 18 instrument may be found.
  6 19    7.  The description of the real estate conveyed.
  6 20    Sec. 9.  Section 558.63, Code 2005, is amended to read as
  6 21 follows:
  6 22    558.63  BOOK OF PLATS == HOW KEPT.
  6 23    The auditor shall keep the book of plats so as to show
  6 24 showing the number of lot and block, or township and range,
  6 25 divided into sections and subdivisions as occasion may
  6 26 require, and shall designate thereon each piece of real
  6 27 estate, and mark in pencil the name of the owner thereon, in a
  6 28 legible manner; which.  The plats shall be lettered or
  6 29 numbered so that they may be conveniently referred to by the
  6 30 memoranda of in the transfer book, and shall be drawn on the
  6 31 scale of not less than four inches to the mile.
  6 32    Sec. 10.  Section 558.67, Code 2005, is amended to read as
  6 33 follows:
  6 34    558.67  CORRECTION OF BOOKS AND INSTRUMENTS.
  6 35    The auditor from time to time shall correct any error
  7  1 appearing in the transfer books, and shall notify the grantee
  7  2 of any error in description discovered in any instrument filed
  7  3 for transfer, and permit the same to be corrected by the
  7  4 parties before completing such transfer shall notify the
  7  5 submitter or preparer of an instrument and the grantee named
  7  6 in the instrument of any error discovered in an instrument
  7  7 filed for transfer and shall further notify such persons of
  7  8 the procedure necessary to correct such error.
  7  9    Sec. 11.  Section 614.21, unnumbered paragraph 1, Code
  7 10 2005, is amended to read as follows:
  7 11    No action shall be maintained to foreclose or enforce any
  7 12 real estate mortgage, bond for deed, trust deed, or contract
  7 13 for the sale or conveyance of real estate, after twenty years
  7 14 from the date thereof, as shown by the record of such
  7 15 instrument, unless the record of such instrument shows that
  7 16 less than ten years have elapsed since the date of maturity of
  7 17 the indebtedness or part thereof, secured thereby, or since
  7 18 the right of action has accrued thereon, or unless the record
  7 19 shows an extension of the maturity of the instrument or of the
  7 20 debt or a part thereof, and that ten years from the expiration
  7 21 of the time of such extension have not yet expired.  The date
  7 22 of maturity, when different than as appears by the record of
  7 23 the instrument, and the date of maturity of any extension of
  7 24 said indebtedness or part thereof, may be shown at any time
  7 25 prior to the expiration of the above periods of limitation by
  7 26 the holder of the debt or the owner or assignee of the
  7 27 instrument filing an extension agreement, duly acknowledged as
  7 28 the original instrument was required to be acknowledged, in
  7 29 the office of the recorder where the instrument is recorded,
  7 30 or by noting on the margin of the record of such instrument in
  7 31 the recorder's office an extension of the maturity of the
  7 32 instrument or of the debt secured, or any part thereof; each
  7 33 notation to be witnessed by the recorder and entered upon the
  7 34 index of mortgages in the name of the mortgagor and mortgagee.
  7 35    Sec. 12.  Sections 558.61, 558.62, and 558.64, Code 2005,
  8  1 are repealed.
  8  2                           EXPLANATION
  8  3    This bill makes changes to the Code relating to the duties
  8  4 of county recorders and county auditors concerning instruments
  8  5 affecting real estate.
  8  6    The bill strikes a requirement that the county recorder
  8  7 compile and forward to the inheritance tax division of the
  8  8 department of revenue a list of deeds which are dated or
  8  9 acknowledged more than six months before the date of
  8 10 recording.
  8 11    The bill requires the recorder to cross=reference to the
  8 12 original document an instrument that makes subsequent
  8 13 reference to the original document.
  8 14    The bill changes the process by which an oil, gas, or
  8 15 metallic mineral lease is forfeited by the lessor or released
  8 16 by the lessee.  The bill requires that if a lessee fails to
  8 17 record with the county recorder a release of a lease, the
  8 18 owner of the land shall send to the lessee, by restricted
  8 19 certified mail, an affidavit of noncompliance.  If the lessee
  8 20 disputes the forfeiture of the lease, the lessee must notify
  8 21 the owner of the land, by restricted certified mail, within 30
  8 22 days of receiving the affidavit of noncompliance.  The bill
  8 23 further provides that if the lessee does not so notify the
  8 24 owner of the land, the owner shall record the affidavit of
  8 25 noncompliance with the county recorder.
  8 26    The bill makes changes relating to the county recorder's
  8 27 duty to record instruments affecting real estate and the
  8 28 county auditor's duty to note transfers of real estate.  The
  8 29 bill repeals those sections which illustrate the endorsements
  8 30 to be made on instruments and the form of real estate transfer
  8 31 books and instead lists the information required to be noted
  8 32 on the instruments and in the transfer books.  The bill
  8 33 defines "book", in the context of the county auditor's
  8 34 transfer book, index book, and plat book, to mean the method
  8 35 of data storage and retrieval utilized by the auditor.
  9  1    The bill provides that notice of any surviving holder or
  9  2 successor in interest of a life estate that has been
  9  3 terminated through the death of the holder of the life estate
  9  4 may be made by affidavit filed for recording with the county
  9  5 recorder in lieu of a deed or change of title.
  9  6    The bill requires the county auditor to notify the
  9  7 submitter or preparer, and the grantee, of an instrument filed
  9  8 for transfer of any error discovered in the instrument.
  9  9    The bill strikes the option of making a notation, witnessed
  9 10 by the county recorder, on the margin of an instrument
  9 11 indicating an extension of the debt maturity date relating to
  9 12 the real estate described in the instrument and requires that
  9 13 such an extension agreement be filed with the county recorder
  9 14 for recording.
  9 15 LSB 1568YC 81
  9 16 sc:nh/gg/14.1