Iowa Admin. Code r. 721-45.7

Current through Register Vol. 47, No. 5, September 4, 2024

Rule 721-45.7 - Forfeiture and cancellation of mechanics' liens

(1)Demand for acknowledgment of satisfaction of claim.

a. When a mechanic's lien is satisfied by payment of the claim, the claimant may post acknowledgment of that satisfaction on the MNLR.

b. If the claimant fails to acknowledge satisfaction by posting, the owner, general contractor or owner-builder may personally serve the claimant with a written demand that the claimant post the acknowledgment of satisfaction on the MNLR. If the claimant fails to post the acknowledgment of satisfaction within 30 days of when the demand is served, the mechanic's lien is forfeited and canceled upon the posting of a copy of the demand and the posting of endorsed proofs of service.

(2)Posting of demand to commence action to enforce the lien. The owner may serve a written demand on the claimant demanding that the claimant commence action to enforce the lien. If the claimant fails to commence action to enforce the lien within 30 days of receipt of the written demand, the owner may post a copy of the demand to commence action and the endorsed proofs of service. Completion of these requirements provides constructive notice to all parties that the lien has been canceled.

(3)'Notice to both parties. At the time that a demand is posted on the MNLR, the administrator shall mail a date- and time-stamped copy of the demand to both parties.

Iowa Admin. Code r. 721-45.7

ARC 0464C, IAB 11/28/12, effective 1/2/2013