House File 517 - Introduced HOUSE FILE 517 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO HSB 96) A BILL FOR An Act relating to the conveyance or encumbrance of a homestead 1 by a spouse. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1667HV (2) 84 rh/sc

H.F. 517 Section 1. Section 561.13, Code 2011, is amended to read as 1 follows: 2 561.13 Conveyance or encumbrance. 3 1. A conveyance or encumbrance of , or a contract to convey 4 or encumber the homestead, if the owner is married, is not 5 valid, unless and until the spouse of the owner executes may 6 be invalidated by a spouse who has not executed the same or a 7 like instrument, or a power of attorney for the execution of 8 the same or a like instrument. However, when the homestead is 9 conveyed or encumbered along with or in addition to other real 10 estate, it is not necessary to particularly describe or set 11 aside the tract of land constituting the homestead, whether the 12 homestead is exclusively the subject of the contract or not, 13 but the contract may be enforced as to real estate other than 14 the homestead at the option of the purchaser or encumbrancer. 15 2. If a spouse who holds only homestead rights and surviving 16 spouse’s statutory share in the homestead specifically 17 relinquishes homestead rights in an instrument, including 18 a power of attorney constituting the other spouse as the 19 husband’s or wife’s attorney in fact, as provided in section 20 597.5 , it is not necessary for the spouse to join in the 21 granting clause of the same or a like instrument. 22 3. A conveyance or encumbrance or a contract to convey or 23 encumber the homestead is not invalid under subsection 1 if any 24 of the following apply: 25 a. The nonsigning spouse’s interest is terminated by divorce 26 or other order of the court. 27 b. Section 614.15 or 654.12B applies. 28 c. Voiding the conveyance or encumbrance or the contract 29 to convey or encumber the homestead would unjustly enrich the 30 nonsigning spouse. 31 4. For the purposes of this section, “nonsigning spouse” 32 means a spouse who has not executed a conveyance or encumbrance 33 or a contract to convey or encumber the homestead, the same or 34 a like instrument, or a power of attorney for the execution of 35 -1- LSB 1667HV (2) 84 rh/sc 1/ 2

H.F. 517 the same or a like instrument. 1 5. For the purposes of this section, a document that 2 provides all of the following meets the requirement of a “same 3 or a like instrument” : 4 a. Includes information sufficiently identifying the 5 original conveyance, encumbrance, or contract. 6 b. Releases the homestead rights and surviving spouse’s 7 statutory share in the homestead. 8 EXPLANATION 9 This bill provides that the conveyance or encumbrance of a 10 homestead by a married person who is the owner of the homestead 11 is not automatically invalid if the person’s spouse has not 12 joined in the conveyance or encumbrance. Such a spouse must 13 take action to invalidate the conveyance or encumbrance. 14 The bill further provides that a conveyance or encumbrance 15 or a contract to convey or encumber the homestead is not 16 invalid under subsection 1 if the nonsigning spouse’s interest 17 is terminated by divorce or other order of the court, Code 18 sections 614.15 (relating to the general statute of limitations 19 for the failure of a spouse to convey or transfer an interest 20 in real estate) and 654.12B (relating to the priority status 21 of a purchase money mortgage lien over all other mortgages) 22 applies, or if voiding the conveyance or encumbrance would 23 unjustly enrich the nonsigning spouse. 24 The bill defines a “nonsigning spouse” as a spouse who 25 has not executed a conveyance or encumbrance or the contract 26 to convey or encumber the homestead, the same or a like 27 instrument, or a power of attorney for a same or a like 28 instrument. A “same or a like instrument” document must 29 include information sufficiently identifying the original 30 conveyance, encumbrance, or contract and must release the 31 homestead rights and the surviving spouse’s statutory share in 32 the homestead. 33 -2- LSB 1667HV (2) 84 rh/sc 2/ 2