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Legal Issues

New Law Means Major Changes to Iowa's Mechanic's Lien System - April 27, 2012

On Friday, April 27, 2012, the Governor signed House File 675 into law. This new law will significantly change Iowa's mechanic's lien system and implements numerous amendments to Iowa Code Chapter 572, which governs mechanic's liens on residential and (non-public) commercial projects. The effective date of the new law is January, 1, 2013.  
Among the law's major changes, the state will implement a mandatory, centralized online/internet filing system for all preliminary notices and mechanic's liens. All such notices and liens must be filed within this online system and can no longer be filed in the various county clerk of court offices.
In addition, under the new law, general contractors on residential projects will generally be required to file a "Notice of Commencement" within ten (10) days of the commencement of the construction of each and every residential project, and their subcontractors and suppliers may be required to file a preliminary notice as well. If one does not timely file the applicable notice in the online system with regard to a residential project, such person or entity may lose the right to enforce a mechanic's lien in the future for such project or otherwise utilize all of the rights and remedies set forth in Iowa Code Chapter 572.
In the upcoming weeks, the Davis Brown Law Firm will host a complimentary interactive webinar for firm clients. During the webinar, attorney Jodie McDougal will analyze and discuss the new mechanic's lien practices and procedures set forth in the new law. Additional information about the webinar will be sent to firm clients via email.   
For more information on House File 675 or the mechanic's lien system, please contact your Davis Brown attorney or Jodie McDougal at 515-288-2500.