How to Buy Abandoned Property Legally in Iowa

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Yes, you can legally buy abandoned property in Iowa—but not simply by entering a vacant home or putting up a fence. The process requires navigating formal legal pathways such as tax sales, foreclosure auctions, or court actions like a quiet title.

+These processes are governed by specific statutes, such as Iowa Code § 446 (tax sales) and Iowa Code § 649 (quiet title).

What Qualifies as Abandoned Property in Iowa

In Iowa, there is no single statutory definition for “abandoned property,” but the law considers various indicators depending on context.

Cities and counties can initiate abandonment procedures under Iowa Code § 657A.10A, which allows municipalities to petition the court for temporary ownership if a building has been vacant and dangerous for at least six months.

However, private individuals cannot simply claim a property by occupancy. Even if a home is unused, legal ownership remains with the deed holder until transferred by a lawful process.

Legal Steps to Acquire Abandoned Property

Purchasing abandoned real estate in Iowa involves one of the following legal methods:

1. Tax Sale Purchase (under Iowa Code § 446)
2. Foreclosure Auction Purchase
3. Quiet Title Action
4. Quitclaim Deed with Title Research

Each method varies in risk, timeline, and complexity. Below is a comparative table outlining the key differences:

Let’s explore the most common process: the tax sale.

Iowa Tax Sale Process Explained

The primary method for acquiring abandoned property in Iowa is through tax sales conducted annually by each county treasurer, under Iowa Code § 446.6. If property taxes remain unpaid, the county sells a tax sale certificate to an investor.

Important Timelines:

Common Mistakes to Avoid

Many buyers fall into legal trouble by assuming that “vacant” equals “available.” In Iowa, this assumption can result in trespassing charges, financial loss, or ownership disputes.

Iowa law does not recognize occupancy rights through informal use or squatters’ claims unless very specific and long-term conditions are met under adverse possession doctrines, which require court action and uninterrupted use for at least ten years. Simply entering or using an abandoned-looking home without legal title is illegal—and risky.

If you’re planning to eventually finance, renovate, or sell an abandoned property, avoiding the following mistakes is essential, especially in today’s housing market, where current mortgage rates are climbing and lender requirements are stricter than ever.

1. Entering the Property Without Legal Title

Never assume that an abandoned house is fair game. Breaking in or occupying a visibly vacant property—no matter how dilapidated it looks—can be prosecuted as criminal trespass under Iowa Code § 716.7.

Police reports often follow neighbor complaints, and in some jurisdictions, cities aggressively prosecute unauthorized entry into foreclosed or tax-delinquent buildings due to safety and liability concerns.

2. Skipping the Title Search

Some tax sale buyers wrongly believe that acquiring a tax certificate or even a treasurer’s deed automatically clears the property title. In reality, old liens, prior mortgages, and unpaid city utility bills may still attach to the property even after the sale.

For example, if a previous owner defaulted on a second mortgage, that lender may still have a legal claim, and foreclosure would be required to extinguish it. Title insurance companies often refuse to insure properties acquired through tax deeds unless a quiet title action has been completed.

This becomes especially relevant when trying to finance the property later with a mortgage, since lenders will not issue loans against properties with unclear or contested ownership. Even with today’s current mortgage rates, which as of June 2025 include:

… lenders will still deny applications for properties with title issues, regardless of how competitive the rate may be. A clear title is non-negotiable for home loans.

3. Ignoring Redemption and Notice Requirements

Under Iowa Code § 447, the property owner has a 12-month redemption period after a tax sale during which they can reclaim the property by paying the taxes and interest. After this, the buyer must serve a 90-day notice to the owner and all interested parties before applying for a treasurer’s deed.

Missing deadlines or sending notices incorrectly (such as to an outdated address) can void your claim, requiring you to start the process over or even lose the property entirely. Some investors mistakenly skip this step, thinking the property is already “theirs,” leading to costly court battles.

4. Buying a Quitclaim Deed Without Verification

Quitclaim deeds are often pitched as a low-cost way to obtain ownership, especially in family transfers or off-market deals involving abandoned lots. However, a quitclaim deed only transfers whatever ownership interest the grantor may have, which could be none at all.

If the person giving the deed is not the actual legal owner, or if others hold valid claims (e.g., heirs, lenders), your deed could be challenged or invalidated in court. Before accepting any quitclaim transfer, you must verify the chain of title at the county recorder’s office or through a licensed title company.

And again, if you plan to take out a mortgage or refinance, lenders will not approve the loan unless the chain of title is verified and insurable. Especially with 30-year fixed mortgage APRs nearing 6.8%, the risk of rejection becomes costly if you’ve already invested in repairs or improvements.

What Happens If a Former Owner Reappears

Iowa law gives former owners one full year after the tax sale to redeem their property. After that, if the required notice is not served properly, a prior owner may petition the court to invalidate your deed, particularly under Iowa Code § 447.9 and 447.12.

If a former owner shows up after the deed is issued, but you failed to notify them or serve proper affidavits, your title could be reversed. This is why quiet title actions are strongly encouraged—even for seasoned investors.

Costs, Risks, and Timelines

Buying abandoned property in Iowa involves far more than the cost of unpaid taxes. Here’s a breakdown of typical costs and risks:

Investors must treat each abandoned property as a legal project, not a casual deal.

Steps to Start the Legal Process Today

If you’re serious about legally acquiring abandoned property in Iowa, the process begins with careful research, legal compliance, and professional support. Below are key steps to take right now to position yourself for success:

1. Check County Treasurer Websites for Tax Sale Listings

Begin by identifying which Iowa counties hold tax sales and when. Counties like Polk, Linn, Scott, Johnson, and Black Hawk regularly publish lists of tax-delinquent properties in late spring. These lists typically become public in May or early June, with tax sales held in June or July, depending on the county.

Visit the county treasurer’s website, navigate to the tax sale section, and download the parcel list. Many counties use third-party platforms like GovTech Services or IowaTaxAndTags to manage registrations and bid processing. Review parcel information carefully, including assessed value, delinquent tax amount, and the type of property (residential, commercial, or vacant lot).

2. Review Relevant Sections of the Iowa Code (§ 446–§ 448)

Before investing any money, take time to understand the governing legal framework:

• Iowa Code § 446 – Tax Sales: Explains how counties sell tax sale certificates and bidding rules.
• Iowa Code § 447 – Redemption: Outlines the 12-month redemption period and notice procedures.
• Iowa Code § 448 – Issuance of Deed: Describes how and when the county treasurer may issue a deed to the certificate holder.

These laws are publicly available on the Iowa Legislature’s website. It’s crucial to understand them because failure to follow statutory notice requirements or redemption timelines can void your claim.

3. Conduct a Preliminary Title Search

Before bidding on any property, perform a preliminary title search. This process involves checking public records to determine:

• Who is the current owner?
• If there are existing liens (e.g., IRS, city code violations, mechanics’ liens)
• If there are mortgages, easements, or other encumbrances

Visit the county recorder’s office, or better yet, hire a licensed title company to perform this for you. While this adds to your up-front cost (typically $150 to $300), it helps you avoid properties with severe legal baggage that could make the investment unprofitable or unmarketable later on.

4. Speak with a Local Real Estate Attorney

Even if you’re familiar with the tax sale process, a local Iowa attorney with experience in tax deed law or quiet title actions can help you navigate key pitfalls. This is especially important if:

• You intend to file a quiet title action (common after receiving a treasurer’s deed)
• You want to take legal possession quickly and avoid disputes.
• You plan to invest in multiple abandoned properties over time.e

Expect to pay $1,500 to $3,500 for a quiet title lawsuit, depending on complexity. The attorney can also guide you in preparing notices, affidavits of service, and timelines required by the Iowa Code.

5. Document Every Step of the Process

Tax deed investments require strict procedural compliance. You must keep accurate records of:

• Purchase receipts for tax sale certificates
• Dates and methods used to notify property owners or lienholders (certified mail, publication, etc.)
• Affidavits of service and other legal filings
• Redemption status and dates
• Application for treasurer’s deed and related communications

If a former owner ever challenges your title in court, these documents become your legal defense. Even a small clerical error—like sending a notice to the wrong address—can delay or undo your claim.

Final Thought

Buying abandoned property in Iowa can be profitable—but only if you follow the law precisely. It’s not a shortcut to cheap housing. It’s a long-term investment that requires legal diligence, financial readiness, Iowa’s economy, and respect for due process.

If you’re ready to explore opportunities, start with your county’s next tax sale calendar—and prepare to do the legal groundwork that turns an abandoned lot into a secure asset.

Bonus: What are the best living places in Iowa? Comfy, safe, and close to everything you need!