Finance
Iowa's owner-financing (seller carry-back) arrangement requires the parties to:
AObtain IREC approval
BExecute a promissory note and mortgage (or land contract) documenting the terms and securing the seller's lien against the property✓ Correct
CFile with the Iowa Department of Banking
DUse only standard bank mortgage forms
Explanation
When an Iowa seller finances the buyer's purchase, the parties must execute a promissory note (establishing the debt) and a mortgage (or land contract) securing the property as collateral. The mortgage should be recorded to protect the seller's priority.
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