Senate Study Bill 1120 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON FRAISE) 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 1667SC (6) 84 rh/sc
S.F. _____ 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 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 is not invalid under 23 subsection 1 if any of the following occur: 24 a. The spouse’s interest is terminated by divorce subsequent 25 to delivery of the document, and the decree awarded the 26 property to the signing spouse. 27 b. The nonsigning spouse abandons the homestead for a 28 minimum of six consecutive months with the intent to remain 29 away permanently. 30 c. Section 614.15 applies. 31 EXPLANATION 32 This bill provides that the conveyance or encumbrance of a 33 homestead by a married person who is the owner of the homestead 34 is not automatically invalid if the person’s spouse has not 35 -1- LSB 1667SC (6) 84 rh/sc 1/ 2
S.F. _____ joined in the conveyance or encumbrance. Such a spouse must 1 take action to invalidate the conveyance or encumbrance. 2 The bill further provides that a conveyance or encumbrance 3 is not invalid solely because a person’s spouse did not join 4 in the conveyance or encumbrance if the spouse’s interest 5 is terminated by divorce subsequent to delivery of the 6 document and the decree awarded the property to the signing 7 spouse, if the nonsigning spouse abandons the homestead for a 8 minimum of six consecutive months with the intent to remain 9 away permanently, or as provided in section 614.15 (action 10 for recovery of property where spouse fails to join in the 11 conveyance). 12 -2- LSB 1667SC (6) 84 rh/sc 2/ 2