Senate Study Bill 3032 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON WARNSTADT) A BILL FOR An Act relating to the recording requirements for certain 1 residential real estate installment sales contracts and 2 including applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5654XC (3) 83 md/nh

S.F. _____ Section 1. Section 558.46, subsections 1, 2, and 7, Code 1 2009, are amended to read as follows: 2 1. Every real estate installment sales contract 3 transferring an interest in residential property shall be 4 recorded by the contract seller with the county recorder in the 5 county in which the real estate is situated not later than one 6 hundred eighty sixty days from the date the contract was signed 7 by the contract seller and contract purchaser. 8 2. Failure to record a real estate contract required to 9 be recorded by this section by the contract seller within the 10 specified time limit is punishable by a fine not to exceed 11 one hundred dollars per day for each day of violation. The 12 county recorder shall record a real estate contract presented 13 for recording even though not presented within one hundred 14 eighty sixty days of the signing of the contract. The county 15 recorder shall forward to the county attorney a copy of 16 each real estate contract recorded more than one hundred 17 eighty sixty days from the date the contract was signed by the 18 contract seller and contract purchaser. The county attorney 19 shall initiate action in the district court to enforce the 20 provisions of this section. Fines collected pursuant to this 21 subsection shall be deposited in the general fund of the 22 county. 23 7. If a contract seller is subject to the requirements of 24 section 558.70, the contract must be recorded within 25 forty-five thirty days rather than one hundred eighty sixty 26 days and the recording requirement is only satisfied by 27 recording the real estate contract rather than a memorandum of 28 the contract. 29 Sec. 2. APPLICABILITY. This Act applies to real estate 30 installment contracts signed on or after the effective date of 31 this Act. 32 EXPLANATION 33 This bill amends Code section 558.46, which currently 34 requires real estate installment sales contracts to be recorded 35 -1- LSB 5654XC (3) 83 md/nh 1/ 2

S.F. _____ by the contract seller with the county recorder not later than 1 180 days from the date the contract was signed. The bill 2 provides that such installment sales must be recorded within 3 60 days rather than 180 days. 4 Current Code section 558.46 also provides that if a contract 5 seller is subject to Code section 558.70, requiring a contract 6 disclosure statement for certain real estate installment sales, 7 the contract must be recorded with the county recorder within 8 45 days rather than 180 days. The bill provides that such 9 installment sales contracts must be recorded within 30 days 10 rather than 45 days. 11 The bill applies to real estate installment contracts signed 12 on or after the effective date of the bill. 13 -2- LSB 5654XC (3) 83 md/nh 2/ 2