Bulletin: IA2014001

Dear Associates:

The purpose of this Bulletin is to advise policy-issuing agents of a change in Iowa law that will become effective on January 1, 2015.

At the present time, Iowa Code §557.15 provides that "A conveyance of real property to two or more grantees each in their own right creates a tenancy in common, unless a contrary intent is expressed."

Legislation enacted in 2014 creates several exceptions to the foregoing. Effective January 1, 2015, Iowa Code §557.15 will provide:

1. "A conveyance of real property to two or more grantees each in their own right creates a tenancy in common, unless a contrary intent is expressed in the conveyance instrument or as provided in subsection 2.
2. A conveyance of real property to two or more grantees in a conveyance instrument in any of the following circumstances creates a presumption of joint tenancy with rights of survivorship unless a contrary intent is expressed in the instrument and subject to subsection 3.
   1. The instrument identifies two grantees as married to each other at the time the instrument is executed.
   2. The instrument describes the conveyance to the grantees with the phrase ‘joint tenants’, ‘joint tenancy,’ or words of similar import.
   3. The instrument describes the conveyance to the grantees with the phrase "or their survivor" with reference to the grantees, or words of similar import.
3. An order of annulment, dissolution, or separate maintenance entered pursuant to §598.21 is a muniment of title to the real estate described, and severs a joint tenancy with rights of survivorship and creates a tenancy in common in equal shares, unless otherwise provided in the order."

These changes should be helpful in resolving many questions that arise with respect to joint tenancy and tenancy in common.

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