HSB 724 (LSB 6060YC (2) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON HOLT)

A BILL FOR

An Act relating to notarial acts, recording of instruments affecting real property, quiet title proceedings, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  9B.6A  Failure to require personal appearance —— penalties.
   1.  A notarial officer who performs a notarial act without requiring the personal appearance of the individual as required under section 9B.6, or requiring the use of communication technology in the case of a remotely located individual as provided in section 9B.14A, commits a serious misdemeanor.
   2.  If the notarial act involves the transfer of real property or an interest in real property, a violation of this section is a class “D” felony.
   3.  It is an affirmative defense to a prosecution under this section that the individual appeared before the notarial officer and knowingly presented apparently valid proof of identification, even if the individual was not in fact the person identified in the proof of identification, or if the remotely located individual provided apparently valid identity proofing information in the case of a notarial act performed under section 9B.14A.
    Sec. 2.  Section 22.7, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  78.  Any copy of photo identification submitted to a county recorder pursuant to section 558.11.
    Sec. 3.  Section 558.11, Code 2026, is amended to read as follows:
   558.11  Record —— constructive notice.
   1.  The evidence of title shall be filed with the recorder of deeds of the county in which the real estate is situated, who shall record the same, and place an abstract thereof upon the index of deeds. The recording thereof shall be constructive notice to all persons, as provided in other cases of entries upon said index, and the recorder shall receive the same fees therefor as for recording other instruments.
   2.  An instrument affecting real estate shall not be accepted for recording unless one of the following applies:
   a.  If the instrument is filed for recording by a trusted filer, all of the following apply:
   (1)  The instrument is signed by the grantor.
   (2)  The instrument is acknowledged or sworn to by the grantor before and certified by a notarial officer, or in the presence of two or more credible subscribing witnesses.
   b.  If the instrument is filed for recording by an individual other than a trusted filer, all of the following apply:
   (1)  The instrument is signed by the grantor.
   (2)  The instrument is acknowledged or sworn to by the grantor in the presence of two or more credible subscribing witnesses.
   (3)  The instrument is acknowledged or sworn to by the grantor, the grantee, and each subscribing witness before and certified by a notarial officer.
   (4)  The instrument is accompanied by a copy of a valid photo identification for the grantor and the grantee filing the instrument for recording.
   3.  If an individual advises the recorder that an instrument affecting real estate filed for recording is fraudulent, the recorder shall notify the county attorney with jurisdiction over the area in which the real property is located and shall provide the county attorney with any photo identification submitted pursuant to subsection 2, paragraph “b”, subparagraph (4).
   4.  For purposes of this section, “trusted filer” means an attorney; a title agent; a title company; an escrow company that provided closing, settlement, or other comparable transaction services in connection with the transfer of real property; a public utility; a governmental entity; or a person acting on behalf of any such entity.
    Sec. 4.  Section 649.6, Code 2026, is amended to read as follows:
   649.6  Equitable proceedings.
   1.  In all other respects, the action contemplated in this chapter shall be conducted as other actions by equitable proceedings, so far as the same may be applicable, with the modifications prescribed.
   2.  The clerk of the district court shall make available a simplified form and instructions for filing a petition to quiet title based on an allegation of a fraudulent attempted conveyance.
   3.  In an action to determine and quiet title to real property, if the court finds that a fraudulent attempted conveyance occurred, the court shall quiet title in the plaintiff and restore the plaintiff to the title and rights held immediately prior to the attempted conveyance.
   4.  Notwithstanding any limitations imposed by court rule relating to a maximum amount of damages or that limits the grounds for which an expedited civil action may be brought, an action under this section may be brought as an expedited civil action if the petition includes a specific allegation that a fraudulent instrument or attempted conveyance affects the title to the real property.
    Sec. 5.  Section 714.1, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  9A.  A person commits theft if the person does any of the following:
   a.  Brings about, or attempts to bring about, a transfer or purported transfer of real property, title to real property, or a nonpossessory interest in real property to a transferee or intended transferee without the effective consent of the owner of the real property or nonpossessory interest and with the intent to deprive the owner of the real property or nonpossessory interest.
   b.  Sells, transfers, or encumbers, or attempts to sell, transfer, or encumber, real property, title to real property, or a nonpossessory interest in real property with respect to a person in exchange for a benefit from any person, without the effective consent of the owner of the benefit and with the intent to deprive the owner of the benefit.
    Sec. 6.  Section 714.8, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  23.  Any of the following:
   a.  Intentionally or knowingly makes a materially false or misleading written statement for the purpose of obtaining real property or an interest in real property.
   b.  With the intent to defraud or harm a person by causing one of the following:
   (1)  Another person, without that person’s effective consent, to sign or execute any document affecting real property or any person’s interest in real property.
   (2)  A public servant, without the public servant’s effective consent, to file or record any purported judgment or other document purporting to memorialize or evidence title to real property or any person’s interest in real property, or a lien or claim against real property or against any person’s interest in real property.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to notarial acts, recording of instruments affecting real property, quiet title proceedings, and theft.
   The bill creates a new criminal offense for a notarial officer who performs a notarial act without requiring the personal appearance of the individual, or requiring the use of communication technology in the case of a remotely located individual as required under current law. A violation is a serious misdemeanor. If the notarial act involves the transfer of real property or an interest in real property, the violation is elevated to a class “D” felony. The bill provides an affirmative defense if an individual appeared before the notarial officer and knowingly presented apparently valid proof of identification, if the individual was not the person identified in the proof of identification, or if the remotely located individual provided apparently valid identity proofing information.
   A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. A class “D” felony is punishable by confinement for no more than five years and a fine of at least $1,025 but not more than $10,245.
   The bill amends Code section 558.11 to modify recording requirements for instruments affecting real estate. The bill establishes different recording requirements depending on whether an instrument is submitted by a trusted filer or by an individual who is not a trusted filer. For instruments submitted by individuals who are not trusted filers, the bill requires additional acknowledgments before a notarial officer and requires the submission of copies of valid photo identification for the grantor and the grantee. The bill provides that copies of photo identification submitted for the recording of certain instruments affecting real property are confidential records under the state’s open records law. The bill defines “trusted filer” to include attorneys, title agents and title companies, escrow companies providing settlement services, public utilities, governmental entities, and persons acting on behalf of such entities. The bill requires the recorder to notify the county attorney and provide copies of submitted photo identification if an allegation is made that a recorded instrument is fraudulent.
   The bill requires the clerk of the district court to make available a simplified form for filing a petition to quiet title when a fraudulent attempted conveyance is alleged. If the court finds that a fraudulent attempted conveyance occurred, the bill requires the court to quiet title in the plaintiff and restore the plaintiff to the title and property rights held immediately prior to the attempted conveyance. The bill authorizes such actions to be brought as expedited civil actions and provides that certain procedural requirements under the Iowa rules of civil procedure do not apply to those actions.
   The bill expands the definition of theft to include conduct involving the fraudulent transfer, attempted transfer, sale, or encumberment of real property or an interest in real property without the effective consent of the owner and with the intent to deprive the owner of the property or interest. The bill also includes theft involving benefit-based transactions related to real property conducted without effective consent and with intent to deprive. Penalties for theft range from a class “C” felony to a simple misdemeanor based upon the value of property involved.
   The bill creates additional fraudulent practices including intentionally or knowingly making materially false or misleading written statements for the purpose of obtaining real property or an interest in real property, causing another person to execute a document affecting real property without effective consent, and causing a public servant to file or record fraudulent documents purporting to establish title to, or a lien or claim against, real property or an interest in real property. Penalties for fraudulent practices range from a class “C” felony to a simple misdemeanor based upon the amount of money or value of property or services involved.