Iowa Subordination Provision

State:
Multi-State
Control #:
US-OL20022A
Format:
Word; 
PDF
Instant download

Description

This office lease is subject and subordinate to all ground or underlying leases and to all mortgages which may affect the lease or the real property of which demised premises are a part and to all renewals, modifications, consolidations, replacements and extensions of any such underlying leases and mortgages. This clause shall be self-operative.

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FAQ

558.70 Contract disclosure statement required for certain residential real estate installment sales.

A subordination clause serves to protect the lender if a homeowner defaults. If this happens, the lender then has the legal standing to repossess the home and cover their loan's outstanding balance first. If other subordinate mortgages are involved, the secondary liens will take a backseat in this process.

Subordination agreements are used to legally establish the order in which debts are to be repaid in the event of a foreclosure or bankruptcy. In return for the agreement, the lender with the subordinated debt will be compensated in some manner for the additional risk.

558.31 Proof of execution and delivery in lieu of acknowledgment.

1. The provision of rule of evidence 5.412 involving a victim of sexual abuse shall apply to discovery conducted in a criminal case or in a postconviction relief proceeding under chapter 822 including but not limited to depositions.

Failure to record a conveyance or lease of agricultural land required to be recorded by this section by the grantee or lessee within the specified time limit is punishable by a fine not to exceed one hundred dollars per day for each day of violation.

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Iowa Subordination Provision