Senate File 2313 - Introduced SENATE FILE 2313 BY LOFGREN A BILL FOR An Act relating to property tax sales, including bidding 1 procedures and foreclosures on certificates, and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5398XS (5) 91 ms/md

S.F. 2313 Section 1. Section 321.46, subsection 2, Code 2026, is 1 amended to read as follows: 2 2. Upon filing the application for a new initial 3 registration and a new title, the applicant shall pay a title 4 fee of thirty dollars, an annual registration fee prorated 5 for the remaining unexpired months of the registration year, 6 and a fee for new registration if applicable. A manufacturer 7 applying for a certificate of title pursuant to section 8 322G.12 shall pay a title fee of twenty dollars. However, a 9 title fee shall not be charged to a manufactured or mobile 10 home retailer applying for a certificate of title for a used 11 mobile home or manufactured home, titled in Iowa, as required 12 under section 321.45, subsection 4 . The county treasurer, if 13 satisfied of the genuineness and regularity of the application, 14 and in the case of a mobile home or manufactured home, that 15 taxes are not owing under chapter 435 , and that applicant has 16 complied with all the requirements of this chapter , shall issue 17 a new certificate of title and, except for a mobile home, 18 manufactured home, or a vehicle returned to and accepted by a 19 manufacturer as described in section 322G.12 , a registration 20 card to the purchaser or transferee, shall cancel the prior 21 registration for the vehicle, and shall forward the necessary 22 copies to the department on the date of issuance, as prescribed 23 in section 321.24 . Mobile homes or manufactured homes titled 24 under chapter 448 447A that have been subject under section 25 446.18 to a public bidder sale in a county shall be titled in 26 the county’s name, with no fee, and the county treasurer shall 27 issue the title. 28 Sec. 2. Section 331.552, subsection 34, Code 2026, is 29 amended to read as follows: 30 34. Destroy tax sale redemption certificates and all 31 associated tax sale records after ten years have elapsed 32 from the end of the fiscal year in which the certificate was 33 redeemed. If a tax sale certificate of purchase is canceled as 34 required by section 446.37 or 448.1 , all associated tax sale 35 -1- LSB 5398XS (5) 91 ms/md 1/ 25

S.F. 2313 records shall be destroyed after ten years have elapsed from 1 the end of the fiscal year in which the tax sale certificate of 2 purchase was canceled. This subsection applies to documents 3 described in this subsection that are in existence before, on, 4 or after July 1, 2003. 5 Sec. 3. Section 331.559, subsection 22, Code 2026, is 6 amended to read as follows: 7 22. Carry out duties relating to the issuance of a tax deed 8 or certificate of title for parcels, as defined in section 9 445.1 , sold for delinquent taxes as provided in chapter 448 10 447A . 11 Sec. 4. Section 331.602, subsection 22, Code 2026, is 12 amended by striking the subsection. 13 Sec. 5. Section 420.207, Code 2026, is amended to read as 14 follows: 15 420.207 Taxation in general. 16 Sections 426A.11 through 426A.15 , 427.1 , 427.8 through 17 427.11 , 428.4 , 428.20 , 428.22 , 428.23 , 437.1 , 437.3 , 441.21 , 18 443.1 through 443.3 , 444.2 through 444.4 , 447.11, and 447.9 19 through 447.13 , so far as applicable, apply to cities acting 20 under special charters. 21 Sec. 6. Section 420.240, Code 2026, is amended to read as 22 follows: 23 420.240 Redemption statutes applicable. 24 The provisions of sections 447.7 through , 447.8, 447.11, and 25 447.13 shall, so far as those sections shall be applicable, and 26 are not changed or modified in this chapter , apply to sales of 27 real estate for delinquent taxes contemplated in this chapter ; 28 but where the words “auditor of the county” or “treasurer” are 29 used in those sections the words “city clerk”, “recorder”, 30 “auditor”, or “person authorized to make out the tax list” and 31 “city collector” or “city treasurer or officer authorized to 32 receive same” shall be substituted. 33 Sec. 7. Section 420.241, Code 2026, is amended to read as 34 follows: 35 -2- LSB 5398XS (5) 91 ms/md 2/ 25

S.F. 2313 420.241 Deed —— when executed. 1 Immediately after the expiration of ninety days from the 2 date of service of the notice, as prescribed by sections 447.9 3 through 447.14 and section 448.1 420.227 , the treasurer, 4 collector, or person authorized to act as collector of taxes, 5 shall make out a deed for each lot or parcel of land sold and 6 remaining unredeemed and deliver the same to the purchaser upon 7 the return of the certificate of purchase. 8 Sec. 8. Section 420.243, Code 2026, is amended to read as 9 follows: 10 420.243 Formal execution. 11 Deeds executed by the city treasurer, collector, or person 12 authorized to act as collector , may be in form substantially as 13 provided by section 448.2 , and shall be signed and acknowledged 14 by the treasurer, collector, or other authorized person in the 15 person’s official capacity. 16 Sec. 9. Section 420.244, Code 2026, is amended to read as 17 follows: 18 420.244 Force and effect. 19 All deeds and conveyances made and executed on account of 20 any general or special tax sale shall be of the same force and 21 effect as deeds made by the county treasurer as provided in 22 sections 448.3 through 448.5 chapter 447A for delinquent county 23 taxes. 24 Sec. 10. Section 420.245, Code 2026, is amended to read as 25 follows: 26 420.245 Rights and remedies. 27 The purchaser as well as the owner of any real property 28 sold on account of such general or special delinquent taxes or 29 assessments shall be entitled to all the rights and remedies 30 which are granted and prescribed by sections 446.35 , 446.36 , 31 and 448.6 through 448.14 chapter 447A , but wherever the words 32 “county and county treasurer and auditor” are used, the words 33 “city, city treasurer, city clerk, recorder, auditor, or 34 collector or officer authorized to act as collector”, shall be 35 -3- LSB 5398XS (5) 91 ms/md 3/ 25

S.F. 2313 substituted. 1 Sec. 11. Section 420.246, Code 2026, is amended to read as 2 follows: 3 420.246 Tax and deed statutes applicable. 4 Sections 446.16 , and 446.32 , and 448.10 through 448.12 are 5 applicable to cities acting under special charters, except 6 that, where the word “treasurer” is used, there shall be 7 substituted the words “city collector or treasurer or deputy 8 treasurer or deputy or officer authorized to collect city 9 taxes”; and where the word “auditor” is used, there shall be 10 substituted the words “city clerk or recorder”. 11 Sec. 12. Section 435.25, subsection 2, Code 2026, is amended 12 to read as follows: 13 2. Chapters 446 , 447 , and 448 447A apply to the sale of 14 a home for the collection of delinquent taxes and interest, 15 the redemption of a home sold for the collection of delinquent 16 taxes and interest, and the execution of a tax sale certificate 17 of title for the purchase of a home sold for the collection of 18 delinquent taxes and interest in the same manner as though a 19 home were real property within the meaning of these chapters to 20 the extent consistent with this chapter . The certificate of 21 title shall be issued by the county treasurer. The treasurer 22 shall charge ten dollars for each certificate of title, except 23 that the treasurer shall issue a tax sale certificate of title 24 to the county at no charge. 25 Sec. 13. Section 437A.11, subsection 6, Code 2026, is 26 amended to read as follows: 27 6. Section 445.3 applies with respect to the replacement 28 taxes and special utility property tax levies and penalties and 29 interest imposed by this chapter , except for the provisions 30 limiting the commencement of actions. In addition, at the 31 county treasurer’s discretion, chapters 446 , 447 , and 448 447A 32 apply in the enforcement of the special utility property tax 33 levies, but any tax deed issued shall not extinguish a tax lien 34 or judgment lien for replacement taxes that has attached to the 35 -4- LSB 5398XS (5) 91 ms/md 4/ 25

S.F. 2313 property. 1 Sec. 14. Section 437B.7, subsection 6, Code 2026, is amended 2 to read as follows: 3 6. Section 445.3 applies with respect to the replacement 4 taxes and special utility property tax levies and penalties and 5 interest imposed by this chapter , except for the provisions 6 limiting the commencement of actions. In addition, at the 7 county treasurer’s discretion, chapters 446 , 447 , and 448 447A 8 apply in the enforcement of the special utility property tax 9 levies, but any tax deed issued shall not extinguish a tax lien 10 or judgment lien for replacement taxes that has attached to the 11 property. 12 Sec. 15. Section 445.1, unnumbered paragraph 1, Code 2026, 13 is amended to read as follows: 14 For the purpose of this chapter and chapters 446 , 447 , and 15 448 447A , section 331.553, subsection 3 , and sections 427.8 16 through 427.12 and 569.8 : 17 Sec. 16. Section 446.9, subsection 2, Code 2026, is amended 18 to read as follows: 19 2. Publication of the date, time, and place of the annual 20 tax sale shall be made once by the treasurer in at least one 21 official newspaper in the county as selected by the board of 22 supervisors and designated by the treasurer at least one week, 23 but not more than three weeks, before the day of sale. The 24 publication shall contain a description of the parcel to be 25 sold that is clear, concise, and sufficient to distinguish the 26 parcel to be sold from all other parcels. All items offered 27 for sale pursuant to section 446.18 may be indicated by an 28 “s” or by an asterisk. The publication shall also contain 29 the name of the person in whose name the parcel to be sold is 30 taxed and the amount delinquent for which the parcel is liable 31 each year, the amount of the interest and fees, and the amount 32 of the service fee as provided in section 446.10, subsection 33 2 , all to be incorporated as a single sum. The publication 34 shall contain a statement that, after the sale, if the parcel 35 -5- LSB 5398XS (5) 91 ms/md 5/ 25

S.F. 2313 is not redeemed within the period provided in chapter 447 , the 1 right to redeem expires and a deed may be issued the tax sale 2 certificate holder may proceed with a sheriff’s sale under 3 chapter 447A . If the treasurer has an official internet site 4 with the information required by this section, the newspaper 5 publication need only contain the date, time, and manner of the 6 sale, the street addresses of the parcels to be sold, and the 7 internet site address of the county containing the tax sale 8 information for more information. If there is no newspaper of 9 general circulation in the county, publication on the website 10 alone shall be sufficient. 11 Sec. 17. Section 446.14, Code 2026, is amended to read as 12 follows: 13 446.14 Irregularities in advertisement. 14 An irregularity or informality in the advertisement does 15 not affect the legality of the sale or the title to a parcel 16 conveyed by the county treasurer’s deed under this chapter and 17 chapters 447 and 448 447A , and in all cases its provisions 18 shall be sufficient notice to the owners of the sale of the 19 parcel. 20 Sec. 18. Section 446.16, Code 2026, is amended to read as 21 follows: 22 446.16 Bid —— purchaser —— successful bidder registration 23 fee. 24 1. The person who offers to pay the total amount due, which 25 is a lien on any parcel, for the smallest percentage of the 26 parcel is the purchaser, and when the purchaser designates the 27 percentage of any parcel for which the purchaser will pay the 28 total amount due, the percentage thus designated shall give the 29 person an undivided interest upon the issuance of a treasurer’s 30 deed, as provided in chapter 448 . If two or more persons have 31 placed an equal bid and the bids are the smallest percentage 32 offered, the county treasurer shall use a random selection 33 process to select the bidder to whom a certificate of purchase 34 will be issued. The percentage that may be designated by any 35 -6- LSB 5398XS (5) 91 ms/md 6/ 25

S.F. 2313 purchaser under this subsection shall not be less than one 1 percent. A bidder shall offer to pay the total amount due, 2 plus the fee under subsection 2, and shall offer the percentage 3 monthly interest the bidder bids to accept on redemption from 4 tax sale. The percentage monthly interest shall not be greater 5 than two percent, and lower bids shall be made in decrements of 6 one-tenth of one percent. The bidder offering to accept the 7 lowest interest rate shall be the winner at the auction. 8 2. The treasurer may establish and collect a reasonable 9 registration fee from each registered successful bidder at 10 the tax sale. The fee shall not be assessed against a county 11 or municipality. The total of the fees collected shall not 12 exceed the total costs of the tax sale. Registration fees Fees 13 collected shall be deposited in the general fund of the county. 14 3. The delinquent tax lien transfers with the tax sale 15 certificate, whether held by the county or purchased by an 16 individual, through assignment or direct purchase at the tax 17 sale. The delinquent tax sale lien expires when the tax sale 18 certificate expires. 19 4. Only those persons as defined in section 4.1 are 20 authorized to register to bid or to bid at the tax sale or 21 to own a tax sale certificate by purchase, assignment, or 22 otherwise. To be authorized to register to bid or to bid at 23 a tax sale or to own a tax sale certificate, a person, other 24 than an individual, must have a federal tax identification 25 number and either a designation of agent for service of process 26 on file with the secretary of state or a verified statement 27 meeting the requirements of chapter 547 on file with the county 28 recorder of the county in which the person wishes to register 29 to bid or to bid at tax sale or of the county where the property 30 that is the subject of the tax sale certificate is located. 31 Sec. 19. Section 446.19A, subsection 4, paragraph b, Code 32 2026, is amended to read as follows: 33 b. All persons who purchase certificates from the city or 34 county under this subsection shall demonstrate the intent to 35 -7- LSB 5398XS (5) 91 ms/md 7/ 25

S.F. 2313 rehabilitate the abandoned property for habitation or build a 1 residential structure on the vacant lot if the property is not 2 redeemed. In the alternative, the county or city may, if title 3 to the property has vested in the county or city under section 4 448.1 chapter 447A , dispose of the property in accordance with 5 section 331.361 or 364.7 , as applicable. 6 Sec. 20. Section 446.23, Code 2026, is amended to read as 7 follows: 8 446.23 Resale. 9 The person physically attending the sale and purchasing 10 a tax sale certificate against any parcel shall immediately 11 pay to the county treasurer the total amount bid plus the 12 successful bidder fee . Upon failure to do so , or in the case of 13 a written bid, failure to pay in full within twenty-four hours 14 after notification by the treasurer that the bidder has won the 15 auction, the parcel is again offered as if no such sale had 16 been made successful bidder shall be the person who would have 17 won had the defaulting purchaser not bid and who has paid the 18 bid amount after similar notification by the treasurer that the 19 bidder has won the auction . These payments may be made in the 20 funds receivable in payment of taxes. 21 Sec. 21. Section 446.24, Code 2026, is amended to read as 22 follows: 23 446.24 Record of sales. 24 The county treasurer or a designee shall attend all tax sales 25 and keep a record in the county system of the sales, describing 26 each parcel on which the total amount due was paid by the 27 purchaser, as they are described in the copy of the notice 28 on file in the treasurer’s office. The county system shall 29 include a statement of the amount, kind of tax, the monthly 30 interest rate to be paid on redemption , fees, and costs for 31 each parcel, to whom sold, and the date of sale. 32 Sec. 22. Section 446.37, Code 2026, is amended to read as 33 follows: 34 446.37 Cancellation of sale. 35 -8- LSB 5398XS (5) 91 ms/md 8/ 25

S.F. 2313 After three years have elapsed from the time of any tax sale, 1 or after one year has elapsed from the time of any tax sale 2 under section 446.19B , and the holder of a certificate has not 3 filed an affidavit proof of service of notice of expiration 4 of right of redemption sheriff’s sale under section 447.12 5 447A.2 , the county treasurer shall cancel the sale from the 6 county system. However, if the filing of affidavit of service 7 is stayed by operation of law, the time period for the filing 8 of the affidavit shall not expire until the later of six months 9 after the stay has been lifted or three years from the time 10 of the tax sale, and in the case of a tax sale under section 11 446.19B , the time period for the filing of the affidavit shall 12 not expire until the later of six months after the stay has 13 been lifted or one year from the time of the tax sale. This 14 section does not apply to certificates of purchase at tax sale 15 which are held by a county. 16 Sec. 23. Section 447.1, subsection 1, Code 2026, is amended 17 to read as follows: 18 1. A parcel sold under this chapter and chapter 446 may be 19 redeemed at any time before the right of redemption expires the 20 sheriff’s sale held in accordance with chapter 447A , by payment 21 to the county treasurer, to be held by the treasurer subject to 22 the order of the purchaser, of the amount for which the parcel 23 was sold, including the successful bidder fee and the fee for 24 the certificate of purchase, and interest of two percent per 25 month provided in the successful bid , counting each fraction 26 of a month as an entire month, from the month of sale, and the 27 total amount paid by the purchaser or the purchaser’s assignee 28 for any subsequent year, with interest at the same rate added 29 on the amount of the payment for each subsequent year from 30 the month of payment, counting each fraction of a month as an 31 entire month. The Unless the interest rate bid is zero, the 32 total amount of interest must be at least one dollar and shall 33 be rounded to the nearest whole dollar. Interest shall accrue 34 on subsequent amounts as provided in section 446.32 . The 35 -9- LSB 5398XS (5) 91 ms/md 9/ 25

S.F. 2313 redemption must be received by the treasurer or entered through 1 the county treasurer’s authorized internet site on or before 2 the last day of the month to avoid additional interest being 3 added to the amount necessary to redeem. However, if the last 4 day of a month falls on a Saturday, Sunday, or a holiday, the 5 payment must be received by the treasurer or entered through 6 the county treasurer’s authorized internet site by the close of 7 business on the first business day of the following month. 8 Sec. 24. Section 447.7, subsection 2, paragraph d, Code 9 2026, is amended to read as follows: 10 d. If the court determines that the person maintaining the 11 action or the person’s legal representative is entitled to 12 redeem by virtue of legal disability or prior legal disability, 13 the court shall so order. The order shall determine the 14 rights, claims, and interests of all parties, including liens 15 for taxes and claims for improvements made on or to the parcel 16 by the person claiming under the tax title. The order shall 17 establish the amount necessary to effect redemption. The 18 redemption amount shall include the amount for redemption 19 computed in accordance with section 447.1 or 447.3 , whichever 20 is applicable, including interest computed up to and including 21 the date of payment of the total redemption amount to the clerk 22 of court and the amount of all costs added to the redemption 23 amount in accordance with section 447.13 . In addition, if 24 the person claiming under the tax title is determined by the 25 court to have made improvements on or to the parcel after the 26 treasurer’s deed was issued, or if the person is a third-party 27 bidder at the sheriff’s sale under chapter 447A who bid more 28 than the total taxes, interest and costs, the court shall enter 29 judgment in favor of the person claiming under the tax title 30 for an amount equal to the value of all such improvements, and 31 such judgment shall be a lien on the parcel until paid. The 32 order shall direct that the person maintaining the action shall 33 pay to the clerk of court, within thirty days after the date of 34 the order, the total redemption amount the order sets forth. 35 -10- LSB 5398XS (5) 91 ms/md 10/ 25

S.F. 2313 Sec. 25. Section 447.7, subsection 4, Code 2026, is amended 1 to read as follows: 2 4. If a person with a legal disability is not in possession 3 of the parcel at the time of the recording of the treasurer’s 4 deed, the person or the person’s legal representative is 5 forever barred and estopped from commencing an action under 6 this section if either of the following occurs: 7 a. An affidavit is filed pursuant to section 448.15 and 8 claims adverse to the tax title are barred by section 448.16 . 9 b. An an action under subsection 2 is not brought within 10 three years after the recording of the treasurer’s deed. 11 Sec. 26. Section 447.8, subsection 1, Code 2026, is amended 12 to read as follows: 13 1. a. After the delivery of the treasurer’s deed, a person 14 entitled to redeem a parcel sold at tax sale shall do so only by 15 an equitable action in the district court of the county where 16 the parcel is located. The action to redeem may be maintained 17 only by a person who was entitled to redeem the parcel during 18 the ninety-day redemption period in section 447.12 , except that 19 such a person may assign the person’s right of redemption or 20 right to maintain the action to another person, or by a person 21 entitled to redeem under section 447.7 . 22 b. In order to establish the right to redeem, the person 23 maintaining the action shall be required to prove to the court 24 either that the person maintaining the action or a predecessor 25 in interest was not properly served with notice in accordance 26 with the requirements of sections 447.9 through 447.12 , or 27 that the person maintaining the action or a predecessor in 28 interest acquired an interest in or possession of the parcel 29 during the ninety-day redemption period in section 447.12 of 30 the expiration of the redemption period pursuant to section 31 447A.2 . A person shall not be entitled to maintain such action 32 by claiming that a different person was not properly served 33 with notice of expiration of right of redemption, if the person 34 seeking to maintain the action, or the person’s predecessor in 35 -11- LSB 5398XS (5) 91 ms/md 11/ 25

S.F. 2313 interest, if applicable, was properly served with the notice. 1 After the execution and delivery of the treasurer’s deed, a 2 person may only redeem a parcel sold for delinquent taxes under 3 this section or section 447.7 . 4 Sec. 27. Section 447.8, subsection 6, Code 2026, is amended 5 by striking the subsection. 6 Sec. 28. Section 447.13, subsection 1, Code 2026, is amended 7 to read as follows: 8 1. The cost of serving the notice notices , including 9 the cost of sending certified mail notices, and the cost of 10 publication under section 447.10 , if publication is required, 11 shall be added to the amount necessary to redeem. The cost of 12 a record search shall also be added to the amount necessary to 13 redeem. However, if the certificate holder is other than a 14 county, the search must be performed by an abstractor who is 15 an active participant in the Iowa title guaranty program under 16 section 16.91 or by an attorney licensed to practice law in the 17 state of Iowa, and the amount of the cost of the record search 18 that may be added to the amount necessary to redeem shall not 19 exceed three hundred dollars. 20 Sec. 29. NEW SECTION . 447A.1 Scheduling of sheriff’s sale 21 for tax sale certificates. 22 On completion of the tax sale and issuance of the tax sale 23 certificate under chapter 446, the county treasurer shall 24 announce the date of the sheriff’s sale to be held on the tax 25 sale certificates issued under chapter 446, which have not been 26 redeemed. The sale shall be scheduled, in consultation with 27 the sheriff, on a date as close as practicable to the third 28 Monday in January. 29 Sec. 30. NEW SECTION . 447A.2 Notice of sheriff’s sale. 30 Not later than sixty days before the scheduled sheriff’s 31 sale, the holder of the tax sale certificate shall serve a 32 notice pursuant to court rule 1.305, and file with the county 33 treasurer proof of service on, all persons with an interest 34 in the property and all adult residents of the property, 35 -12- LSB 5398XS (5) 91 ms/md 12/ 25

S.F. 2313 other than lessees or trespassers. The notice shall be in 1 substantially the following form: 2 [county] Treasurer 3 [county treasurer contact information] 4 Property No. [parcel identification number] 5 Important Legal Notice: 6 Notice of sheriff’s sale to satisfy delinquent property taxes 7 You are being given this notice because your property at 8 [address of property], in which you appear to have an interest, 9 has been sold at tax sale on [sale date], due to failure to 10 pay legally required property taxes. If you want to keep your 11 ownership or other interest in this property, your prompt 12 attention to this notice is needed. 13 The simplest way to resolve this matter is to contact the 14 treasurer’s office and pay the delinquent property taxes and 15 charges in full. We show that as of [date of notice], and if 16 payment is received by [day before second month’s interest 17 attaches] the amount to pay this debt in full is [amount of 18 sale price, successful bidder fee and one month’s interest, 19 rounded to the nearest dollar]. If you pay after that date, 20 but before the sheriff’s sale date (see below) this amount will 21 be increased by interest and other charges as provided by law. 22 You should know that unless you pay off all delinquent 23 taxes, fees, and interest before the sheriff’s sale on the tax 24 certificate, currently scheduled for [scheduled sale date] at 25 [time] in the [county] treasurer’s office, a treasurer’s deed 26 will be issued to the winning bidder, which will allow the 27 bidder to evict you and any other claimants to the property. 28 You should also know that, if the property is a single-family 29 or two-family dwelling and you are an individual who is 30 either an owner, contract seller, or contract purchaser of the 31 property, you may demand that the sheriff’s sale be postponed 32 for six months after the sale date noted above. To be 33 effective, a written demand for delay of sale must be received 34 by the county treasurer’s office no later than [ten days before 35 -13- LSB 5398XS (5) 91 ms/md 13/ 25

S.F. 2313 the scheduled sheriff’s sale date]. 1 If you have any questions about this notice, or if you are 2 unable to provide or borrow the money needed to pay off the 3 property tax debt, you should contact an attorney at once. 4 Sec. 31. NEW SECTION . 447A.3 Optional method of service. 5 1. In lieu of the notice requirements of section 447A.2, 6 if a person whose only interest is as a judgment creditor, the 7 person may be served by regular mail and certified mail to 8 the person, or if the person was represented by an attorney 9 currently licensed to practice law in Iowa, by regular or 10 electronic mail to the attorney. 11 2. If the public records of the secretary of state show 12 that creditor has a registered agent, service may be made by 13 certified mail to the registered agent. 14 3. If a person with an interest cannot be found, or is 15 evading service, the tax sale purchaser may file an affidavit 16 to that effect, and serve that person by both regular and 17 certified mail to that person’s last known address. 18 Sec. 32. NEW SECTION . 447A.4 Delay of sale. 19 If the property is a property primarily used or intended for 20 human habitation containing two or fewer dwelling units, an 21 individual who is either an owner, contract seller, or contract 22 purchaser of the property, may demand that the sheriff’s 23 sale be postponed for six months after the initial scheduled 24 sheriff’s sale date. To be effective, a written demand for 25 delay of sale must be received by the county treasurer’s office 26 no later than ten days before the scheduled sheriff’s sale 27 date. At the scheduled sale, the treasurer shall announce the 28 properties with delay demands and the new sale date scheduled 29 for delayed sales, including sales delayed under section 30 447.10, which will be as close as practicable to the first 31 Monday occurring six months after the originally scheduled 32 January sale date. 33 Sec. 33. NEW SECTION . 447A.5 Posting of notice of sale. 34 If the property is a property primarily used or intended for 35 -14- LSB 5398XS (5) 91 ms/md 14/ 25

S.F. 2313 human habitation containing four or fewer dwelling units, the 1 tax sale certificate holder shall post the following notice, in 2 a weather-resistant form, on a main entrance to the property 3 no later than thirty days before the scheduled sheriff’s sale 4 date: 5 Important Legal Notice 6 Notice of Sheriff’s Sale to Collect Delinquent Property Taxes 7 On [date of tax sale] this property was sold to pay 8 delinquent property taxes. A sheriff’s sale on the property 9 will be held on [date of scheduled sheriff’s sale] at [time] 10 in the office of the [county] treasurer. If the delinquent 11 taxes plus costs, interest, and fees are not paid to the county 12 treasurer before that date, you will probably lose any interest 13 you have in this property. If you are unable to pay such 14 amounts and wish to keep your interest in this property, you 15 should consult an attorney at once. 16 Sec. 34. NEW SECTION . 447A.6 Manner of sale. 17 The sheriff’s sale shall be conducted at the county 18 treasurer’s office by the sheriff with the assistance of the 19 treasurer. To the extent feasible, the procedures for the 20 sheriff’s sale shall be the same as that of a special execution 21 against real property under chapter 626, with the following 22 modifications: 23 1. The notices provided in sections 626.74, 626.75, and 24 626.78 shall not be required. 25 2. The holder of the tax sale certificate shall, within 26 two days of the scheduled sale, file a verified accounting of 27 the tax sale principal, successful bidder fee, advancements, 28 interest, attorney fees and costs of the sheriff’s sale, 29 and tender the certificate to the treasurer. The treasurer 30 shall credit the certificate holder in such sum against the 31 certificate holder’s opening bid, and may require cash from the 32 certificate holder only to the extent that the holder’s bid 33 exceeds such sum. Unless otherwise directed by the certificate 34 holder in writing, the sum shall be deemed submitted as the 35 -15- LSB 5398XS (5) 91 ms/md 15/ 25

S.F. 2313 certificate holder’s opening bid. 1 3. If the attorney fees under subsection 2 include a charge 2 or advance for a title search, a copy of the results of the 3 search shall be filed with the treasurer at least ten days 4 before the scheduled sale, and be a public record, with no 5 warranty from either the attorney, other than of authenticity, 6 or from the title agent. 7 4. Section 626.81 shall not apply. 8 5. If there is an overplus from the sheriff’s sale proceeds 9 over that amount due to the tax sale certificate holder, the 10 treasurer shall deduct and pay from the proceeds the amount of 11 the tax sale certificate, plus interest and allowable charges, 12 to the certificate holder upon surrender of the certificate. 13 6. The procedures of section 626.98 will be modified to 14 provide that there is no redemption, and that the deed to the 15 winning bidder will be issued by the treasurer. 16 Sec. 35. NEW SECTION . 447A.7 Attorney fees. 17 The reasonable fees of the attorney representing the tax 18 certificate owner for services from completion of the tax sale 19 until the sheriff’s sale shall be added to the sale bid of 20 the tax certificate owner. A copy of the itemized billing 21 of the attorney shall be filed with the treasurer and shall 22 be accessible to the public. If the property is redeemed or 23 purchased at the sheriff’s sale by a third party, the attorney 24 shall deposit the fees in the attorney’s trust account. If no 25 party in interest commences a legal action, or files a pleading 26 in an action under section 447A.9, subsection 5, demanding a 27 determination of the proper amount of attorney fees and costs 28 owing to the attorney from the certificate holder within ninety 29 days after the sheriff’s sale, the attorney may apply the fees 30 to the tax sale certificate holder’s account. 31 Sec. 36. NEW SECTION . 447A.8 Optional procedure. 32 A person holding title under a tax deed issued under chapter 33 448 before July 1, 2026, may, at any time before July 1 of 34 the year following the calendar year in which the tax deed 35 -16- LSB 5398XS (5) 91 ms/md 16/ 25

S.F. 2313 was issued, request that the tax deed be canceled, a new tax 1 sale certificate be issued, and that the treasurer resell the 2 property at the next annual sheriff’s sale under this chapter. 3 Sheriff’s sales under this procedure shall not be subject to a 4 demand for delay of sale. The priority of the new certificate 5 shall, for purposes of conflicting claims on the property, 6 relate back to the date of the original tax sale. 7 Sec. 37. NEW SECTION . 447A.9 Overplus —— exemption. 8 1. An overplus at the sheriff’s sale is exempt from 9 execution by a creditor to the same extent that the property 10 was exempt immediately prior to the sheriff’s sale. 11 2. Any person with a previously existing interest in the 12 property, other than an owner, contract vendor, or contract 13 vendee of the property, shall have thirty days after the 14 sheriff’s sale to file a verified claim with the treasurer. 15 The claim may include facts to establish that the overplus is 16 not exempt from execution. A claim not timely filed is barred 17 against the overplus. 18 3. At any time after the claim deadline, the owners, 19 contract vendors, contract vendees, and persons with timely 20 filed claims may file with the treasurer a written agreement 21 for distribution of the overplus, according to which the 22 treasurer shall distribute the overplus. 23 4. Within ninety days after the sheriff’s sale, any person 24 listed in subsection 3 may file an action in equity in the 25 district court requesting a determination of the claims against 26 the overplus. The treasurer shall distribute the overplus as 27 ordered by court. The action may also determine the proper 28 amount of attorney fees and charges of the certificate holder. 29 5. If no such action under subsection 4 is filed, the 30 treasurer shall distribute the overplus, free of all other 31 claims, to the taxpayers of record in the treasurer’s office at 32 the time of the sheriff’s sale as follows: 33 a. If the property is held in joint tenancy and all tenants 34 are living, the proceeds will be divided equally among the 35 -17- LSB 5398XS (5) 91 ms/md 17/ 25