MECHANICS' LIEN RELEASE — IOWA

Iowa Code Chapter 572 — Mechanic's Lien

TABLE OF CONTENTS

1. Full Release of Mechanics' Lien
2. Partial Release of Mechanics' Lien
3. Release by Surety Bond
4. Demand for Release of Mechanics' Lien
5. Petition to Discharge Mechanics' Lien
6. Recording and Registry Instructions
7. Iowa Statutory Reference Table
8. Practitioner Notes

1. FULL RELEASE OF MECHANICS' LIEN

ACKNOWLEDGMENT OF SATISFACTION OF MECHANICS' LIEN CLAIM

(Iowa Code § 572.23)

RECORDING INFORMATION

Registry Posting Reference No.: [________________________________]
County of Recording: [________________________________], Iowa
Date of Original Lien Posting: [__/__/____]

CLAIMANT INFORMATION

Name of Claimant: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]
Telephone: [________________________________]
Email: [________________________________]

PROPERTY OWNER INFORMATION

Name of Owner: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]

GENERAL CONTRACTOR (if different from Claimant)

Name: [________________________________]
Address: [________________________________]

PROPERTY DESCRIPTION

Property Address: [________________________________]
City: [________________________________] County: [________________________________], Iowa
Legal Description: [________________________________]
[________________________________]
[________________________________]

ORIGINAL LIEN INFORMATION

Date Lien Posted to Mechanics' Notice and Lien Registry: [__/__/____]
Registry Posting Number: [________________________________]
Original Lien Amount: $[________________________________]
Description of Labor/Materials Furnished: [________________________________]
[________________________________]

ACKNOWLEDGMENT OF SATISFACTION

The undersigned Claimant hereby acknowledges full satisfaction and release of the Mechanics' Lien described above, pursuant to Iowa Code § 572.23. The Claimant states and certifies as follows:

1. The Claimant previously posted a Mechanics' Lien claim against the above-described property with the Mechanics' Notice and Lien Registry administered by the Iowa Secretary of State.

2. The full amount due under the lien claim, including all principal, interest, and costs, has been paid and satisfied as follows:

☐ Payment in full received in the amount of $[________________________________]
☐ Payment received on [__/__/____] via: ☐ Check ☐ Wire Transfer ☐ Cash ☐ Other: [________________]
☐ Settlement agreement executed on [__/__/____]
☐ Other resolution: [________________________________]

3. The Claimant hereby releases, cancels, discharges, and acknowledges full satisfaction of the above-described Mechanics' Lien, and authorizes the posting of this satisfaction to the Mechanics' Notice and Lien Registry.

4. The Claimant acknowledges that this Release, when posted to the Mechanics' Notice and Lien Registry, shall constitute constructive notice of the satisfaction of the lien claim.

5. The Claimant waives and relinquishes any and all right, title, claim, or interest in or to the above-described property arising from the released lien.

CLAIMANT SIGNATURE

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

State of Iowa )
) ss.
County of [________________________________] )

On this [____] day of [________________], 20[____], before me, a Notary Public in and for said County and State, personally appeared [________________________________], known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Notary Public: ______________________________
My Commission Expires: [__/__/____]

[NOTARY SEAL]

2. PARTIAL RELEASE OF MECHANICS' LIEN

PARTIAL ACKNOWLEDGMENT OF SATISFACTION

(Iowa Code § 572.23)

RECORDING INFORMATION

Registry Posting Reference No.: [________________________________]
County of Recording: [________________________________], Iowa

PARTIES

Claimant: [________________________________]
Property Owner: [________________________________]
Property Address: [________________________________]
Legal Description: [________________________________]

ORIGINAL LIEN INFORMATION

Date Lien Posted: [__/__/____]
Registry Posting Number: [________________________________]
Original Lien Amount: $[________________________________]

PARTIAL RELEASE

The undersigned Claimant hereby acknowledges partial satisfaction of the Mechanics' Lien described above as follows:

1. Amount of partial payment received: $[________________________________]
2. Date of partial payment: [__/__/____]
3. Remaining lien amount after partial release: $[________________________________]

4. Description of work/materials covered by this partial release: [________________________________]
   [________________________________]

5. Portion of property released from lien (if applicable):
   ☐ Entire property remains subject to lien for remaining balance
   ☐ The following portion of the property is released from the lien:
   [________________________________]
   [________________________________]

The Claimant hereby releases and discharges the lien to the extent of $[________________________________] and acknowledges that the remaining lien amount of $[________________________________] continues to encumber the above-described property.

CLAIMANT SIGNATURE

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

NOTARIZATION

State of Iowa )
) ss.
County of [________________________________] )

Subscribed and sworn/affirmed before me on this [____] day of [________________], 20[____], by [________________________________].

Notary Public: ______________________________
My Commission Expires: [__/__/____]

[NOTARY SEAL]

3. RELEASE BY SURETY BOND

DISCHARGE OF MECHANICS' LIEN BY BOND

(Iowa Code § 572.15; Iowa Administrative Code 721—45.8)

IMPORTANT: Under Iowa Code § 572.15, a mechanics' lien may be discharged at any time by submitting a bond to the administrator (Iowa Secretary of State) in twice the amount (200%) of the sum for which the lien claim is posted, with surety or sureties approved by the administrator, conditioned for payment of any sum for which the claimant may obtain judgment upon the claim.

BOND FOR DISCHARGE OF MECHANICS' LIEN

KNOW ALL PERSONS BY THESE PRESENTS:

PRINCIPAL

Name: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]

SURETY

Name of Surety Company: [________________________________]
Address: [________________________________]
City: [________________________________] State: [____] Zip: [________]
Licensed in Iowa: ☐ Yes ☐ No

LIEN INFORMATION

Claimant Name: [________________________________]
Registry Posting Number: [________________________________]
Date of Lien Posting: [__/__/____]
Lien Amount: $[________________________________]
Bond Amount (2x lien amount): $[________________________________]
Property Address: [________________________________]
County: [________________________________], Iowa

WHEREAS, [________________________________] ("Claimant") posted a mechanics' lien against the above-described property in the amount of $[________________________________]; and

WHEREAS, the Principal desires to discharge said lien pursuant to Iowa Code § 572.15;

NOW, THEREFORE, the Principal and Surety are held and firmly bound unto the Claimant in the sum of $[________________________________] (being twice the amount of the lien claim), for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally.

CONDITION: This bond is conditioned upon the payment of any sum for which the Claimant may obtain judgment upon the lien claim, including costs.

If the Principal shall pay any such judgment in full, this obligation shall be void; otherwise, it shall remain in full force and effect.

PRINCIPAL

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

SURETY

Signature: ______________________________
Printed Name: [________________________________]
Title: [________________________________]
Date: [__/__/____]

[CORPORATE SEAL]

ADMINISTRATOR APPROVAL

Approved by the Administrator this [____] day of [________________], 20[____].

Administrator Signature: ______________________________

4. DEMAND FOR RELEASE OF MECHANICS' LIEN

WRITTEN DEMAND FOR ACKNOWLEDGMENT OF SATISFACTION

(Iowa Code § 572.23)

Date: [__/__/____]

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA REGULAR MAIL

To: [________________________________] ("Claimant")
[________________________________]
[________________________________]
[________________________________]

From: [________________________________] ("Demanding Party")
[________________________________]
[________________________________]
[________________________________]

RE: DEMAND FOR ACKNOWLEDGMENT OF SATISFACTION OF MECHANICS' LIEN

Property Address: [________________________________]
County: [________________________________], Iowa
Registry Posting Number: [________________________________]
Date of Lien Posting: [__/__/____]
Lien Amount: $[________________________________]

Dear [________________________________]:

You are hereby notified and demand is made upon you, pursuant to Iowa Code § 572.23, to acknowledge satisfaction of the mechanics' lien claim identified above.

BASIS FOR DEMAND:

☐ The lien claim has been paid in full. Payment of $[________________________________] was made on [__/__/____].
☐ The lien claim has been settled by written agreement dated [__/__/____].
☐ The limitation period for enforcement of the lien has expired under Iowa Code § 572.27 (two years from expiration of ninety days after last labor/materials furnished).
☐ Other: [________________________________]

DEMAND:

You are hereby demanded, pursuant to Iowa Code § 572.23, to acknowledge satisfaction of the above-described mechanics' lien claim within thirty (30) days of service of this demand by posting an acknowledgment of satisfaction to the Mechanics' Notice and Lien Registry.

CONSEQUENCES OF FAILURE TO COMPLY:

Please be advised that under Iowa Code § 572.23:

1. If you fail to acknowledge satisfaction within thirty (30) days after service of this demand, the demanding party may file a copy of this demand with proofs of service with the administrator (Secretary of State) for posting to the Mechanics' Notice and Lien Registry.

2. Upon such filing and posting, the posting shall constitute constructive notice to all parties of the due forfeiture and cancellation of the lien.

3. You shall forfeit and pay twenty-five dollars ($25.00) to the owner, general contractor, or owner-builder.

4. You shall be liable to any person injured to the extent of the injury caused by the failure to acknowledge satisfaction.

PROOF OF PAYMENT ENCLOSED:

☐ Copy of canceled check(s)
☐ Wire transfer confirmation
☐ Receipt of payment
☐ Settlement agreement
☐ Other: [________________________________]

Govern yourself accordingly.

Sincerely,

______________________________
[________________________________]
[________________________________]
[________________________________]
[________________________________]

5. PETITION TO DISCHARGE MECHANICS' LIEN

IN THE IOWA DISTRICT COURT
IN AND FOR [________________________________] COUNTY

[________________________________], )
)
Petitioner, ) Case No. [________________________________]
)
v. ) PETITION TO DISCHARGE
) MECHANICS' LIEN
[________________________________], )
)
Respondent. )

COMES NOW the Petitioner, [________________________________], and petitions this Court for an order discharging the mechanics' lien posted by the Respondent against real property owned by and/or of interest to the Petitioner, and in support thereof states as follows:

I. PARTIES

1. Petitioner is:
   ☐ The owner of the real property described herein
   ☐ A party with an interest in the real property described herein, specifically: [________________________________]
   Petitioner's address is: [________________________________]

2. Respondent, [________________________________], is the party who posted the mechanics' lien at issue. Respondent's address is: [________________________________]

II. PROPERTY

3. The real property subject to the lien is located at [________________________________], in [________________________________] County, Iowa, and is more particularly described as:
   [________________________________]
   [________________________________]

III. LIEN INFORMATION

4. On or about [__/__/____], Respondent posted a mechanics' lien claim against the above-described property with the Mechanics' Notice and Lien Registry, Posting Number [________________________________], in the amount of $[________________________________].

IV. GROUNDS FOR DISCHARGE

5. The mechanics' lien should be discharged for the following reason(s):

☐ Full Payment: The lien claim has been paid in full and Respondent has failed to acknowledge satisfaction despite written demand served on [__/__/____], more than thirty (30) days ago, as required by Iowa Code § 572.23.

☐ Expiration of Enforcement Period: The limitation period for enforcement of the lien under Iowa Code § 572.27 has expired. The last date of labor or materials furnished was [__/__/____], and more than two (2) years have elapsed since the expiration of ninety (90) days from that date, without the filing of any enforcement action.

☐ Invalid Lien: The lien was not properly posted or is otherwise invalid because: [________________________________]

☐ Surety Bond Filed: A surety bond in twice the lien amount has been submitted to the administrator pursuant to Iowa Code § 572.15, and the lien should be discharged as to the property.

☐ Other Grounds: [________________________________]

V. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully requests that this Court:

A. Enter an order discharging and canceling the mechanics' lien described herein;
B. Direct the Iowa Secretary of State (administrator) to post a satisfaction and cancellation of the lien on the Mechanics' Notice and Lien Registry;
C. Award Petitioner costs of this action and reasonable attorney fees;
D. Award such other and further relief as the Court deems just and equitable.

Respectfully submitted,

______________________________
[________________________________]
Attorney for Petitioner
Iowa Bar No. [________________________________]
[________________________________]
[________________________________]
[________________________________]
Telephone: [________________________________]
Email: [________________________________]

VERIFICATION

State of Iowa )
) ss.
County of [________________________________] )

I, [________________________________], being first duly sworn, state that I am the Petitioner in the above-captioned matter, that I have read the foregoing Petition, and that the facts stated therein are true and correct to the best of my knowledge, information, and belief.

______________________________
Petitioner

Subscribed and sworn before me on [__/__/____].

Notary Public: ______________________________
My Commission Expires: [__/__/____]

6. RECORDING AND REGISTRY INSTRUCTIONS

Iowa Mechanics' Notice and Lien Registry (MNLR)

Iowa is unique among states in that mechanics' liens are not recorded with the county recorder. Instead, they are posted to the Mechanics' Notice and Lien Registry administered by the Iowa Secretary of State pursuant to Iowa Code § 572.34.

Filing Office:
Iowa Secretary of State
Mechanics' Notice and Lien Registry
Lucas Building, 1st Floor
321 East 12th Street
Des Moines, Iowa 50319
Website: https://sos.iowa.gov/mnlr

Filing Methods:
☐ Electronic posting via the Secretary of State's internet site (preferred)
☐ United States Mail (posted within 3 business days of receipt)
☐ Facsimile transmission

Steps to Release a Lien:

1. Prepare the Acknowledgment of Satisfaction using Form 1 above.
2. Post the satisfaction to the MNLR electronically or by mail.
3. Retain proof of posting for your records.
4. No county recorder filing is required for lien satisfaction (unlike most other states).

Filing Fees:
Consult the Secretary of State's fee schedule for current posting fees. Fees are subject to change.

Important Notes:
- Iowa's system is centralized through the Secretary of State, not the county recorder.
- A correction statement may be posted if a record on the registry is believed to be inaccurate or wrongfully posted (Iowa Code § 572.34).
- The MNLR is searchable online by property address, owner name, or posting number.

7. IOWA STATUTORY REFERENCE TABLE

8. PRACTITIONER NOTES

A. Iowa's Unique Electronic Registry System

Iowa does not use county-based recording for mechanics' liens. All filings, including satisfactions and releases, are handled through the Mechanics' Notice and Lien Registry at the Secretary of State's office. This means:

• No county recorder's office involvement for lien release
• Centralized, searchable online database
• Electronic filing is available and encouraged
• Three-business-day turnaround for mail/fax filings

B. Low Statutory Penalty

Iowa's $25 forfeiture penalty for failure to acknowledge satisfaction is among the lowest in the nation. However, the statute also provides that the lien claimant is liable to any person injured to the extent of the injury, which can result in significantly larger exposure (e.g., damages from delayed closing or financing).

C. Constructive Cancellation Mechanism

Under Iowa Code § 572.23, if a claimant fails to acknowledge satisfaction within 30 days of written demand, the demanding party may file the demand with proofs of service with the administrator. Upon posting, this constitutes constructive notice of forfeiture and cancellation of the lien. This is a self-help remedy that does not require court action.

D. Bond Amount

Iowa requires bonds in twice the lien amount (200%), which is at the higher end compared to some states. The surety must be authorized to issue bonds in Iowa and approved by the administrator.

E. Enforcement Limitation Period

The enforcement deadline of two years from the expiration of the 90-day filing period effectively gives lien claimants up to two years and ninety days from the date of last labor/materials furnished. After this period expires, the lien becomes unenforceable, and the owner may petition for discharge.

F. Common Pitfalls

1. Confusing county recording with MNLR posting. Iowa liens are posted to the MNLR, not recorded with the county recorder.
2. Failing to post satisfaction promptly. Even though the penalty is low ($25), exposure for resulting damages can be significant.
3. Incorrect bond amounts. The bond must be exactly twice the lien amount; a bond for less will not discharge the lien.
4. Not verifying surety authorization. The surety company must be authorized to transact surety business in Iowa.
5. Missing the written demand requirement. The 30-day clock only starts running after proper written demand is served.

G. Checklist for Releasing a Mechanics' Lien in Iowa

☐ Confirm full payment has been received and cleared
☐ Prepare Acknowledgment of Satisfaction (Form 1 above)
☐ Have the acknowledgment notarized
☐ Post the satisfaction to the MNLR electronically or by mail
☐ Retain confirmation of posting
☐ Notify the property owner and/or requesting party that satisfaction has been posted
☐ Close the lien file

This template is provided for informational purposes only and does not constitute legal advice. Iowa mechanics' lien law, including Chapter 572 and the Mechanics' Notice and Lien Registry system, is subject to legislative amendment. Consult a qualified Iowa attorney and verify all statutory citations before use.