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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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EasementA non-possessory right to use another person's land for a specific purpose.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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