Under Iowa's new Mechanic's Lien Law, general contractors utilizing subcontractors and/or suppliers on
residential projects (both on new construction and remodeling/repair projects)
will generally be required to post a "Notice of Commencement" to the
new online registry administered by the Office of the Iowa Secretary of State, called
the Mechanics' Notice and Lien Registry (or MNLR), within ten (10) days of the
commencement of each project, in order to preserve the right to later file a
Under the new law, such general contractors must still provide an "owner
notice" to the owner, via a construction contract or separate notice, at the
outset of the project, as is required under existing law, in order to preserve
the right to later file a lien. The language of the owner notice has been
slightly amended under the new law. See HF 675 at § 572.13.
25, 2012, the Secretary of State issued a press release containing the MNLR's
website address and toll-free telephone number, both of which are required to
be contained within the Owner Notice. Under the new
law, the owner notice must be:
- In writing, i.e., either in the contract with
the owner or in a separate notice provided to the owner;
- In boldface type;
- In at least ten point font, and
- State as follows:
Persons or companies furnishing labor or materials for the improvement of real property may enforce a lien upon the improved property if they are not paid for their contributions, even if the parties have no direct contractual relationship with the owner. The state construction registry provides a listing of all persons or companies furnishing labor or materials who have posted a lien or who may post a lien upon the improved property.
The state construction registry can be found at www.sos.iowa.gov/mnlr, and the toll-free telephone
number for the state construction registry is 888-767-8683.
General contractors should keep
proof that they provided the required owner notice.
more information on Iowa's new mechanic's lien, please contact attorney Jodie McDougal, Davis Brown Law Firm, at 515-288-2500.