Recording of 120-day Affidavit is necessary to establish Marketable Title under Iowa Tax Sale Deed

The Title Standards of the Iowa State Bar Association require that a person who has acquired title to a parcel by a tax sale deed must complete procedures under Sections 448.15 and 448.16 of the Code of Iowa before the tax deed title may be considered marketable. Section 448.15 authorizes the tax deed holder to file a 120-day affidavit with the county recorder, stating that any person with a claim adverse to the tax deed title must file the claim with the county recorder within 120 days after the filing of the affidavit. Section 448.16 states that any claims not filed within the 120-day filing period are barred thereafter.

Generally, an Iowa title-examining attorney will not render an opinion that tax deed title is marketable until after the expiration of the 120-day claim period following the recording of the 120-day affidavit. Therefore, whenever a tax sale deed is obtained, the deed holder should give strong consideration to the preparation and recording of a 120-day affidavit.