Escrow & Title

An Iowa property is encumbered by a restrictive covenant prohibiting commercial uses. The covenant was created in 1952. Under Iowa's Marketable Title Act, this covenant:

AIs automatically extinguished after 40 years
BMay be extinguished unless preserved by re-recording or specific statutory exception✓ Correct
CRemains valid indefinitely regardless of the Marketable Title Act
DCan only be removed by a court order

Explanation

Iowa's Marketable Title Act can extinguish covenants more than 40 years old unless they have been preserved by re-recording or fall within a statutory exception. However, active subdivisions may preserve covenants through community re-recording.

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