Senate Study Bill 3082 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOGG) A BILL FOR An Act relating to common forms of co-ownership of real 1 property and including effective date and applicability 2 provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5477SC (2) 85 rh/sc
S.F. _____ Section 1. Section 557.15, Code 2014, is amended by striking 1 the section and inserting in lieu thereof the following: 2 557.15 Common forms of co-ownership of real property. 3 1. A conveyance of real property to two or more grantees 4 each in their own right creates a tenancy in common, unless a 5 contrary intent is expressed in the conveyance instrument or as 6 provided in subsection 2. 7 2. A conveyance of real property to two or more grantees in 8 a conveyance instrument in any of the following circumstances 9 creates a presumption of joint tenancy with rights of 10 survivorship unless a contrary intent is expressed in the 11 instrument and subject to subsection 3: 12 a. The instrument identifies two grantees as married to each 13 other at the time the instrument is executed. 14 b. The instrument describes the conveyance to the grantees 15 with the phrase “joint tenants”, “joint tenancy”, or words of 16 similar import. 17 c. The instrument describes the conveyance to the grantees 18 with the phrase “or their survivor” with reference to the 19 grantees, or words of similar import. 20 3. An order of annulment, dissolution, or separate 21 maintenance entered pursuant to section 598.21 is a muniment of 22 title to the real property described in a conveyance instrument 23 under subsection 2, and severs a joint tenancy with rights of 24 survivorship and creates a tenancy in common in equal shares, 25 unless otherwise provided in the order. 26 Sec. 2. EFFECTIVE DATE AND APPLICABILITY. This Act takes 27 effect January 1, 2015, and applies to instruments executed and 28 orders entered on or after that date. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 Under current law, codified in Code section 557.15, a 33 conveyance of real property to two or more grantees in their 34 own right creates a tenancy in common, unless otherwise 35 -1- LSB 5477SC (2) 85 rh/sc 1/ 2
S.F. _____ indicated in the conveyance instrument. A property interest 1 held in a tenancy in common allows each owner to separately 2 convey, encumber, or devise the property. A joint tenancy with 3 rights of survivorship is another form of co-ownership of real 4 property recognized in Iowa in which the survivor owns the 5 entire interest in the property by operation of law upon the 6 death of the joint tenant. 7 The bill retains the current language in Code section 8 557.15 relating to tenancies in common and also specifies 9 that a conveyance of real property to two or more grantees 10 in a conveyance instrument in circumstances specified in the 11 bill creates a presumption of joint tenancy with rights of 12 survivorship, unless a contrary intent is expressed in the 13 instrument. The bill also provides that an order of annulment, 14 dissolution, or separate maintenance entered pursuant to 15 Code section 598.21 severs a joint tenancy with rights of 16 survivorship created in those specified circumstances and 17 creates a tenancy in common in equal shares, unless otherwise 18 provided in the order. 19 The bill takes effect January 1, 2015, and applies to 20 instruments executed and orders entered on or after that date. 21 -2- LSB 5477SC (2) 85 rh/sc 2/ 2