Page 19 - State Law Summary of Mechanic's Lien Law

Iowa IA

What is the statutory authority?
Iowa Code §§ 572.1 through 572.34.
What is the Attachment Date of the Mechanic’s Lien?
A recorded mechanic’s lien attaches and has priority as of the date claimant
furnishes work or materials to the project. Iowa Code § 572.18(1).

What constitutes visible commencement of construction?
The furnishing of any material or labor for any building or land for improvement,
alteration or repair thereof. Iowa Code § 572.2.
What is the priority of the insured construction mortgage/
deed of trust?
A construction mortgage has priority over all mechanic’s liens of claimants who
commenced their particular work or improvement subsequent to the date of the
recording of the construction mortgage. A mortgage lien is deemed a “construction
mortgage lien” if it secures loans or advancements made to directly finance work
or improvements upon the property which secures the lien. Iowa Code § 572.18 (2).

If priority of the insured mortgage/deed of trust is lost, is there a
statutory procedure to regain priority?
No.

When does a mechanic’s lien have to be filed for claimant to maintain
lien rights?
The mechanic’s lien must be posted to the mechanic’s notice and lien registry
website administered by the Iowa Secretary of State within ninety (90) days after
the date on which the last of the material was furnished or last of the labor was
performed. Iowa Code § 572.18. However, a mechanic’s lien posted to the registry
within two (2) years and ninety (90) days after the date on which the last of the
material was furnished or the last of the labor was performed is valid but only to
the extent of the balance due from the owner to the general contractor. Iowa Code
§ 572.8-572.11.
A general contractor of a residential construction property who has contracted or
will contract with subcontractors and fails to provide the owner with the notice
required by Iowa Code §572.13 or fails to post a notice of commencement of work
to the mechanics’ notice and lien registry website no later than 10 days after the
commencement of work is not entitled to a mechanic’s lien. Iowa Code §§ 572.13
(3) and 572.13A (4).

A subcontractor of a general contractor of a residential construction property who
fails to post a preliminary notice required by Iowa Code § 572.13B (1) is not entitled
to a mechanic’s lien. Iowa Code § 572.13 (4).

Is there a procedure to bond over the mechanic’s lien(s)?
Yes. A bond must be submitted to the administrator (Iowa Secretary of State)
for twice the amount of the posted lien with the surety to be approved by the
administrator. The bond discharges the lien leaving the property free of the
mechanic’s lien. See Iowa Code § 572.15.
Are the ALTA 32/33 Series Endorsements available for the Loan Policy?
Yes.

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