Victor owns a home in Cedar Rapids as his primary residence on a 0.6-acre urban lot. He has no mortgage. A contractor files a valid mechanic's lien for $18,000 in unpaid renovation work, and a credit card company obtains a $12,000 judgment lien. Victor claims Iowa's homestead exemption. Which of the following correctly describes the enforceability of each lien against Victor's property?
Correct Answer
D) The mechanic's lien is enforceable against the entire property; the credit card judgment lien is fully blocked by the homestead exemption.
Iowa Code Chapter 561 establishes two key rules relevant here. First, the urban homestead exemption is limited to one-half acre (0.5 acres). Victor's lot is 0.6 acres, which exceeds the urban homestead limit, meaning the exemption applies only to the first 0.5 acres and the excess 0.1 acres is not protected. However, the credit card judgment lien — being a general unsecured creditor claim — is blocked by the homestead exemption on the protected 0.5 acres. Second, mechanic's liens are explicitly excluded from homestead protection under Iowa law. The contractor's valid mechanic's lien is enforceable against the entire property, including the homestead portion, regardless of the exemption.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Fee simple absolute is the highest and most complete form of property ownership, giving the owner unrestricted rights to use, possess, enjoy, and dispose of the property. It is of unlimited duration and fully inheritable.
Community property is a system where property acquired during a marriage is owned equally by both spouses.
A freehold estate represents ownership of real property with an indefinite duration.
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