Iowa Amends Provisions Relating to Mortgage Releases and Powers of Attorney
Iowa has made several changes to its mortgage release provisions. These changes are effective as of July 1, 2018.
Acknowledging Satisfaction of a Debt
The first amendment imposes a time restriction on a mortgagee’s obligation to acknowledge satisfaction of a mortgage debt. A mortgagee now has thirty days from the time payment is made in full to acknowledge, in writing, the satisfaction of the debt. This requirement does not apply to mortgages securing lines of credit, future advances, or other future obligations, unless the mortgagor makes a written request.
Penalty for Failure to Discharge
Another amendment affects the penalty imposed on a mortgagee who fails to properly discharge a mortgage. A mortgagee who fails to discharge a mortgage is now liable to the mortgagor for actual damages resulting from the failure to discharge plus a five hundred dollar penalty and reasonable attorney fees.
Limitation of Liability
A new section regarding limitation of liability has been added to this provision. Under this section, a mortgagee is not liable for failure to discharge if the mortgagee implemented and followed reasonable procedures to achieve compliance with its obligations but was unable to comply with those obligations due to circumstances beyond its control.
For the full text of House File 2232, please refer to https://www.legis.iowa.gov/legislation/BillBook?ga=87&ba=HF%202232
Power of Attorney Act
Iowa has added a new subsection to its Power of Attorney Act, which is effective immediately. Under this subsection, an agent who has general authority with respect to real property is authorized to relinquish any and all of the principal’s rights of dower, homestead, and elective share.
For the full text of Senate File 2139, please refer to https://www.legis.iowa.gov/docs/publications/LGE/87/SF2139.pdf
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
Comments are closed.