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Mechanics' Notice & Lien Registry FAQ
Beginning January 2, 2013, the new statewide Mechanics' Notice and Lien Registry (MNLR) will take effect. The MNLR will be available on the Secretary of State's web site. A toll-free number, 888.767.8683, is also available.
Q: What is the MNLR?
A: The MNLR is a centralized computer database maintained by the Secretary of State that provides a central repository for notices of commencement of work and preliminary notices for residential construction properties, and mechanics' liens on all construction properties.
The MNLR is the result of legislation passed in the 2012 General Session. It provides homeowners with notice of subcontractors and materials suppliers providing labor and/or materials that could result in a lien filed on the property. In addition to the notice provided by the general contractor, the Secretary of State will also provide notice to homeowners, encouraging them to check the MNLR and obtain lien waivers prior to final payment to the general contractor. The MNLR also provides these subcontractors and materials suppliers a method of preserving their rights in the event they are not paid for services provided.
The MNLR replaces the system of filing a mechanics' lien with the Clerk of Court in each county. Beginning January 2, 2013, the Clerk of Court will no longer accept the filing of mechanics' liens, demands or bonds covered in Iowa Chapter 572.
Q: How will the MNLR work?
A: A general contractor for residential construction must post a commencement of work on the MNLR wihin 10 days of construction start. If the general contractor fails to do so, a subcontractor can post the commencement of work instead of the general contractor at any time. A commencement of work must be posted in order for the subcontractor to post a preliminary notice. A mechanics' lien for a residential property cannot be posted unless a commencement of work (for the general contractor) or a preliminary notice (for the subcontractor) has been posted.
For commercial construction, beginning January 2, 2013, mechanics' liens will be posted on the MNLR, however, there is no requirement to post a commencement of work or a preliminary notice.
There is a fee associated with any posting that requires the Secretary to mail an owner notice.
Q: Do I have to register as an MNLR user?
A: Anyone posting information on the MNLR must register as a user. People searching for information on the MNLR are not required to register as a user. There is no cost to register as an MNLR user.
Q: How do I search the MNLR?
A: There are several categories that can be searched within the MNLR. They are: owner name, general contractor name, MNLR number, property address, legal description and tax parcel identification number. You can also search by county, date range and type of posting. For example, a search can be performed for Jasper County from January 1 to January 7, 2013 for mechanics' liens only. There is no fee for searching the MNLR on the web site. The search results page will show the date and time that the search was performed. Copies of the posted MNLR documents can be emailed, printed or downloaded from the web site.
Q: Can I obtain a data download or PDF copies of the posted documents?
A: The Secretary of State will have a subscription service available to obtain data download and bulk PDF copies of posted documents in 2013. There is a fee associated with this service. |
 CAP FAQ
Q: When do I need an Appraisal?
A: An appraisal or Real Property Inspection Report (RPIR) is required for a new construction transaction to show no encroachments. Appraisals may also be used to fulfill the requirements of a Location-Residential endorsement.
Q: How do I apply for a mortgage release?
A: If the mortgage release is needed for a certificate issued with the Rapid Certificate program you can upload the payoff documents in the Endorsement Against Loss-Lien/Form 801 screen and then simply click "Submit for Mortgage Release" to notify the mortgage release staff.
If you are in need of a release for a non-Rapid Certificate file, please visit the Mortgage Release Program section of Title Guaranty's web site to find the Request for Certificate of Release. Complete the 2-page form and send it, the required documentation and processing fee to the attention of Judy Peterson at Title Guaranty.
Q: How do I obtain a copy of a certificate older than April 1, 2010?
A: When you open the certificate detail page, there is a Contact Title Guaranty link you can select. This will generate an email to Title Guaranty to request a copy of the policy. Title Guaranty will respond to these emails within one business day.
IowaTitleGuaranty.gov
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Title Guaranty Annual Conference
Title Guaranty participants met in Coralville on November 15, 2012. The conference began with an overview of the 2012 Presidential Election; the information presented by Professor Goldford was insightful.
One of the major topics of the day, addressed by several speakers, was the upcoming Mechanics Notice and Lien Registry (MNLR), a change to the way mechanics liens are handled in Iowa. Beginning January 1, 2013, mechanics liens will no longer be filed with the Clerk of Court at the county level, but will be posted to a statewide system housed in the office of the Secretary of State.
We appreciate the presentations by Secretary of State Matt Schultz, who provided background on the system and a brief overview of the MNLR, and John Fatino for presenting additional information on mechanics liens in Iowa - including a background on the legislation. These sessions generated many questions and comments and we thank both Mr. Fatino and Secretary Schultz for sharing their day with us.
Walter Conlon spoke about legislation of interest that passed during last session, including changes to the foreclosure statute and notarial acts. He also provided a preview of some topics that may be included in the next legislative session.
We enjoyed the comments of Dan Moore and Judy Hilgenberg, President of the Iowa Land Title Association, discussing abstracting and title standards throughout the state and the difficulty in establishing one broad standard when there are significant regional customs and variations. The Ethics Panel, led by Tim Gartin, posed some very interesting scenarios ably addressed by the panel: Nancy Willis, Greg Kingery and Jorge Gomez, Jr.
Title Guaranty is fortunate to be able to call on a well-informed group of participants to help provide content for our various seminars. A special thank you to all of our partners for their part in making the conference a success. All materials from the conference are available on the Title Guaranty web site. Watch for information to come on next year's conference! |
 Why order an Owner's Certificate? Title Guaranty offers coverage for the owners or purchasers of property by way of a Title Guaranty Owner's Certificate. The owner's certificate guarantees that the owner or buyer has clear title to the property, subject to certain exclusions. It protects the owner or buyer against title defects, including undisclosed liens, errors or omissions in legal documents, mistakes in researching public records, lack of a right of access, fraud and forgery.
An owner's certificate is available only when the transaction is a purchase, unless: (1) the borrowers are paying off a real estate contract and substituting it with a mortgage; or (2) the borrowers are paying off a construction loan and replacing it with an end (or permanent) loan. Owner's coverage is not available for other refinance transactions or if the borrowers are taking out a second mortgage.
Title Guaranty owner's coverage is free if: (1) the fair market value or purchase price of the property is $500,000 or less; (2) the property will be the primary residence of the buyers; and (3) the owner's certificate is issued concurrently with a lender's certificate. Owner's coverage is still available at a nominal cost if the property will not be the primary residence of the buyers (such as a rental or investment property or a vacation home), or if no lender's certificate is issued at the same time. In those cases, the basic cost of owner's coverage up to and including $500,000 is $110. If the fair market value or purchase price exceeds $500,000, the owner's coverage will cost a little more. While an owner's certificate may be free in most cases, it is not automatically issued with each lender's certificate. The buyers must execute a Primary Residence Composite Mortgage Affidavit and indicate their desire for owner's coverage by completing paragraph 5. The buyers should initial the line following "Elect" and fill in the blank after "full purchase price of". In those cases where a division-issued certificate is ordered, paragraph 6 of the Application for Title Guaranty should be completed with the purchase price, owner's coverage amount and a check mark of "x" after "Eligible for Free Owner's Yes __". A common question is, "Why should I get owner's coverage? Isn't the owner covered as long as there is a lender's certificate?" The answer is "not necessarily". It is true that, in the event of a claim against the property, the efforts of Title Guaranty to clear or settle that claim on behalf of the lender may provide some collateral benefit to the owners. However, without an owner's certificate, Title Guaranty is representing solely the interests of the lender, which may be different from those of the owners. Also, coverage under the owner's certificate continues for as long as the Guaranteed holds an interest in the property or owns an indebtedness secured by the property, or for as long as the Guaranteed has liability for covenants of warranty under a deed of the premises. This means that coverage under an owner's certificate may extend indefinitely, even after the owners sell or convey the property, as long as they give a warranty deed.
Owner's coverage for a commercial, industrial or agricultural property is also available. Please contact Title Guaranty Commercial Division for rates, requirements and restrictions to coverage for these transactions. For more information about owner's coverage, including a detailed overview of the risks protected by an owner's certificate, or for a sample of an owner's certificate, please refer to Section 3.02, "Overview of Owner's Certificate" in the Staff Supplement.
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 Tara Lawrence recently joined Title Guaranty as a Commercial Underwriting Attorney. She will be providing underwriting legal counsel and will facilitate the escrow and closing services of commercial transactions. Tara attended Drake University Law School and previously worked for Whitfield & Eddy, P.L.C as an associate practicing in real estate, business and banking law.
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Pictured from left to right: Dave Jamison, Iowa Finance Authority Executive Director; Steven C. Anderson, Hawkeye Title & Settlement Services; Dar Baum, Iowa Finance Authority Board Chair
Congratulations to Steve Anderson, Hawkeye Title & Settlement Services in Iowa City who was awarded the Kay Anderson Friend of Iowa award at the Iowa Finance Authority HousingIowa Conference in September. He was nominated for the award by one of his clients - Hills Bank & Trust.
Steve has devoted thousands of hours to non-profit organizations throughout his career and has always been passionate about the community. In particular, he has served as free legal counsel for the Iowa Valley Habitat for Humanity and has performed almost every real estate closing for the Habitat since 1993. He devoted hundreds of hours of work to assisting local residents of Iowa City during the floods of 2008 and with the recovery efforts of homes that were destroyed during the disaster. He also participated in providing legal assistance for a joint project between the University of Iowa and the City, entitled the UniverCity Neighborhood Partnership. This partnership is dedicated to ensuring that neighborhoods around campus remain safe, vital, affordable and attractive places to live and work for renters and homeowners. Currently, 26 homes in Iowa City are being revitalized and refurbished.
Steve is a community advocate and also serves other various organizations. He is a Board of Director of Table 2 Table, a food rescue United Way agency; an officer and board member of the Mercy Hospital Iowa City Foundation; President of the Board of Directors for the Visiting Nurse Association of Johnson County; serves on the Advisory Board for the Retired and Senior Volunteer Program; provides legal assistance to clients from Iowa Legal Aid; and much more.
About the Award
In March of 2008, the state of Iowa lost a great friend and exceptional community development advocate with the untimely passing of Kay Anderson. A resident of LeMars and long-time member of the Iowa Finance Authority Board of Directors, Kay is remembered for her kindness to others and unwavering commitment to the success of programs that help to improve the lives of Iowans.
The Kay Anderson Friend of Iowa Award has rightfully gained a prestigious reputation as a favorite at the HousingIowa Conference. Past award winners have truly encompassed Kay's outstanding qualities and exceptional record of service. |
Use of the Composite Mortgage Affidavit The Composite Mortgage Affidavit (CMA) provides a convenient and uniform method of documenting certain underwriting information concerning mechanics' liens, survey matters, unrecorded easements, possession rights and violations of restrictions. The CMA is intended to provide confirming evidence that, to the knowledge of the buyers and sellers of the property, there are no apparent problems in these areas. If problems are revealed on the CMA, further inquiry may be necessary. The CMA is required when issuing lender or owner certificate(s) and must be completely filled out, including the commitment number (if any) and loan number at the top, and it must be signed by all sellers and buyers, or titleholders, plus their spouses, with proper notarization. There are two versions of the CMA: a CMA for primary residences (referred to as the "Primary Residence CMA") and a CMA intended for all purposes and types of property (referred to as the "All Purpose CMA"). The Primary Residence CMA is a simplified form designed for owner-occupied properties, which the buyers and sellers should find easier to understand. The Primary Residence CMA allows the buyers to elect or decline the free owner's certificate by completing paragraph 5 of the the form. For properties other than owner-occupied, or if the parties prefer, they may also elect to use the All Purpose CMA instead of the Primary Residence CMA. Transactions involving second homes, residential investment properties, commercial, industrial, agricultural or bare land are all examples of properties other than owner-occupied, and the parties must use the All Purpose CMA. Following are some frequently asked questions and answers regarding the CMA: Q: Are all parties required to execute the same CMA?
A: No, a separate CMA may be signed by each party. Q: Does Title Guaranty require the original CMAs?
A: No, copies of the executed CMAs are acceptable. Q: What if a title insurance affidavit is submitted instead of a Title Guaranty CMA?
A: Title insurance affidavits are not acceptable as a substitute for the CMA. Q: Can the CMA be executed by someone on behalf of the
seller(s)?
A: Yes, the CMA may be executed on behalf of the seller(s) by a party who is legally authorized to represent the seller(s), such as the seller(s)' real estate agent or attorney. Q: What if there are several sellers/titleholders (such as beneficiaries of an estate)? Do they all have to sign the CMA?
A: Every effort should be made to obtain as many signatures as possible, especially of those owners who are familiar with the property, but the CMA may be accepted if not all sellers have signed. Q: What if the seller refuses to sign the CMA?
A: Sometimes, a seller may refuse to sign the CMA, especially if they have never occupied the residence and cannot attest to the information requested on the CMA. Some examples of a seller that might refuse to sign the CMA are a relocation company, Freddie Mac, Fannie Mae, a bankruptcy trustee or a lender who has taken title to the property through a foreclosure. In those cases, it is okay to issue a Title Guaranty certificate without the seller's signature on the CMA. Q: Is a non-titleholder spouse required to sign the CMA?
A: A CMA that does not include the signature of a non-titleholder spouse is acceptable. The CMA is an important document for Title Guaranty transactions and every effort should be made to ensure that our requirements are met. In those cases of unusual circumstances, where it is impossible or extremely difficult to meet our requirements for the CMA, please contact Bob Skelley. Copies of the Primary Residence CMA may be downloaded from the Title Guaranty web site. For more information about the CMA, including sample copies of both forms, please refer to Section 4.10, "Use of the Composite Mortgage Affidavit" in the Staff Supplement. |
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