654.12B Priority of recorded purchase money mortgage lien.
1. The lien created by a recorded purchase money mortgage shall have priority over and is senior to preexisting judgments against the purchaser and any other right, title, interest, or lien arising either directly or indirectly by, through, or under the purchaser. A mortgage is a purchase money mortgage to the extent it is either:
a. Taken or retained by the seller of the real estate to secure all or part of its price, including all costs in connection with the purchase.
b. Taken by a lender who, by making an advance or incurring an obligation, provides funds to enable the purchaser to acquire rights in the real estate, including all costs in connection with the purchase, if the funds are in fact so used. Except when it is a refinancing of an existing purchase money mortgage between the same lender and purchaser and no new funds are advanced, a mortgage given to secure funds which are used to pay off another mortgage is not a purchase money mortgage.
2. If more than one purchase money mortgage exists, the first mortgage to be recorded has priority. In order to be entitled to the rights provided by this section, the mortgage must contain a recital that it is a purchase money mortgage. However, failure to include the recital in the mortgage shall not prevent a mortgage otherwise qualifying as a purchase money mortgage from being a purchase money mortgage for purposes other than this section. The rights in this section are in addition to, and the obligations are not in derogation of, all rights provided by common law.
95 Acts, ch 175, §2; 96 Acts, ch 1137, §1, 2; 2013 Acts, ch 30, §261
Referred to in §561.13
Structure Iowa Code
Title XV - JUDICIAL BRANCH AND JUDICIAL PROCEDURES
Chapter 654 - FORECLOSURE OF REAL ESTATE MORTGAGES
Section 654.1 - Equitable proceedings.
Section 654.1A - Maintenance of mortgagor protections — discontinuation of occupation.
Section 654.2 - Deeds of trust.
Section 654.2A - Agricultural land — notice, right to cure default.
Section 654.2B - Requirements of notice of right to cure.
Section 654.2C - Mediation notice — foreclosure on agricultural property.
Section 654.2D - Nonagricultural land — notice, right to cure default.
Section 654.4 - Separate suits on note and mortgage.
Section 654.4A - Service of process — in rem relief.
Section 654.4B - Acceleration of indebtedness — notice of mortgage mediation assistance.
Section 654.5 - Judgment — sale and redemption.
Section 654.6 - Deficiency — general execution.
Section 654.8 - Junior encumbrancer entitled to assignment.
Section 654.9 - Payment of other liens — rebate of interest.
Section 654.9A - Release of superior liens by bond.
Section 654.11 - Foreclosure of title bond.
Section 654.12 - Vendee deemed mortgagor.
Section 654.12A - Priority of advances under mortgages.
Section 654.12B - Priority of recorded purchase money mortgage lien.
Section 654.13 - Pledge of rents — priority.
Section 654.14 - Preference in receivership — application of rents.
Section 654.15 - Continuance — moratorium.
Section 654.15A - Notice of sale to junior creditors.
Section 654.15B - Right to intervene — notice.
Section 654.16 - Separate redemption of homestead.
Section 654.16A - Right of first refusal following recording of sheriff’s deed to agricultural land.
Section 654.17 - Rescission of foreclosure.
Section 654.17A - Sale free of liens.
Section 654.17B - Divestment of junior liens pursuant to loan modification — repeal.
Section 654.17C - Military foreclosure protection — notice.
Section 654.18 - Alternative nonjudicial voluntary foreclosure procedure.
Section 654.19 - Deed in lieu of foreclosure — agricultural land.
Section 654.20 - Foreclosure without redemption — nonagricultural land.
Section 654.20A - Rights reserved.
Section 654.21 - Demand for delay of sale.
Section 654.22 - No demand for delay of sale.
Section 654.23 - No redemption rights after sale.
Section 654.24 - Deed and possession.