S.F. _____ Section 1. Section 558.5, Code 2013, is amended to read as 1 follows: 2 558.5 Contract for deed —— presumption of abandonment. 3 1. When the record shows that a contract or bond for a deed 4 has been was executed more than ten years earlier, and the 5 record discloses no performance of the same and that more than 6 ten years have elapsed since the contract by its terms was to 7 be performed, the contract or bond shall be deemed abandoned 8 by the vendee and of no effect void and the land shall be freed 9 from any lien or defect on account of the contract or bond in 10 any of the following situations: 11 a. The record does not indicate the contract or bond has 12 been performed and more than ten years have elapsed since the 13 contract or bond by its terms was to be performed . 14 b. A performance date for the contract or bond is not stated 15 in the contract or bond or any extensions thereof and more than 16 twenty years have elapsed from the date the contract or bond 17 was executed. 18 2. On and after July 1, 1992, this This section shall 19 apply to a contract or bond described in this section , if the 20 contract or bond is not filed of record but is referred to in 21 another instrument which is filed of record. The contract or 22 bond shall be deemed abandoned by the vendee ten years from the 23 date that the contract or bond is to be performed according to 24 the recorded instrument. However, if the recorded instrument 25 does not refer to a performance date for the contract or bond, 26 the contract or bond shall be deemed abandoned ten twenty years 27 after the date that the instrument containing the reference is 28 recorded. 29 3. This section shall not apply to a vendee or a vendee’s 30 successor in interest if the vendee or the vendee’s successor 31 in interest is in possession of the property or has been 32 continuously paying the total amount due, as defined in 33 section 445.1, of the taxes levied against the property for the 34 preceding five years. 35 -1- LSB 1116XC (4) 85 rh/sc 1/ 6

S.F. _____ Sec. 2. Section 614.21, Code 2013, is amended to read as 1 follows: 2 614.21 Foreclosure of ancient mortgages. 3 1. No An action shall be maintained to foreclose or 4 enforce any real estate mortgage, bond for deed, trust deed, 5 or contract for the sale or conveyance of real estate, after 6 twenty years from the date thereof, as shown by the record of 7 such instrument, shall be barred, unless the either of the 8 following: 9 a. The record of such instrument shows that less than 10 ten years have elapsed since the date of maturity of the 11 indebtedness or part thereof, secured thereby, or since the 12 right of action has accrued thereon, or unless the . 13 b. The record shows an extension of the maturity of the 14 instrument or of the debt or a part thereof, and that ten years 15 from the expiration of the time of such extension have not yet 16 expired. 17 2. The date of maturity, when different than as appears by 18 the record of the instrument, and the date of maturity of any 19 extension of said indebtedness or part thereof, may be shown 20 at any time prior to the expiration of the above periods of 21 limitation specified in subsection 1 by the holder of the debt 22 or the owner or assignee of the instrument filing an extension 23 agreement, duly acknowledged as the original instrument was 24 required to be acknowledged, in the office of the recorder 25 where the instrument is recorded. 26 3. From and after July 4, 1946, this This section shall also 27 apply to any instrument of the kind described in this section 28 which is not of record but which is described or referred to 29 in any other instrument which is filed of record and the . 30 The limitation shall be ten years from the due date of the 31 instrument referred to if disclosed in the record and , if not 32 so disclosed , then within ten years from the date of the record 33 of the instrument containing such reference is recorded . 34 4. a. A vendee of a real estate contract or bond for deed, 35 -2- LSB 1116XC (4) 85 rh/sc 2/ 6

S.F. _____ or a vendee’s successor in interest, who is barred by this 1 section from maintaining an action to foreclose or enforce 2 the contract or bond and who is in physical possession of the 3 property may serve the vendor with a demand for a deed as 4 provided in the contract. The notice may be served personally 5 or by publication, on the same conditions, and in the same 6 manner as is provided for the service of original notices, 7 except that when the notice is served by publication an 8 affidavit shall not be required before publication. Service 9 by publication shall be deemed complete on the day of the last 10 publication. Service may be made on a judgment creditor of 11 the deceased vendor or any other person who is, as a matter of 12 record, interested in the estate of a deceased vendor, in the 13 manner provided in section 654.4A, subsections 4 and 5. 14 b. The demand shall state that if a deed is not provided 15 within forty-five days of service and an action to foreclose 16 or forfeit the contract has not been commenced within such 17 forty-five-day period, the vendee may file an affidavit showing 18 service and compliance with this subsection whereupon the 19 auditor shall correct the county records as provided in section 20 558.67 to indicate that the rights of the vendor have vested 21 in the vendee. 22 Sec. 3. Section 656.3, Code 2013, is amended to read as 23 follows: 24 656.3 Service. 25 1. Said The notice provided for in section 656.2 may be 26 served personally or by publication, on the same conditions, 27 and in the same manner as is provided for the service of 28 original notices, except that when the notice is served by 29 publication no an affidavit therefor shall not be required 30 before publication. Service by publication shall be deemed 31 complete on the day of the last publication. 32 2. The notice provided for in section 656.2 may be served 33 on a judgment creditor of a deceased vendor or on any other 34 person who is, as a matter of record, interested in the estate 35 -3- LSB 1116XC (4) 85 rh/sc 3/ 6

S.F. _____ of a deceased vendor in the manner provided in section 654.4A, 1 subsections 4 and 5. 2 Sec. 4. Section 656.9, Code 2013, is amended to read as 3 follows: 4 656.9 Defect in forfeiture proceedings —— limitation of 5 actions. 6 1. An action shall not be commenced after July 1, 1992, 7 which that asserts a claim against real estate previously 8 subject to a forfeiture proceeding, and such claim is based 9 upon a defect in the forfeiture proceeding, in which the proof 10 and record of service of notice of forfeiture required by 11 section 656.5 has been filed for record in the office of the 12 county recorder prior to July 1, 1991. 13 2. a. An action shall not be commenced by a vendee who 14 is not in possession of the property, or by a party to the 15 forfeiture proceeding who is other than a vendee or vendor, 16 that asserts a claim against real estate previously subject to 17 a forfeiture proceeding, and such claim is based upon a defect 18 in the forfeiture proceeding, in which the proof and record of 19 service of notice of forfeiture required by section 656.6 has 20 been filed of record for more than ten years. 21 b. A vendee who is not in possession of the property, or a 22 party to the forfeiture proceeding who is other than the vendee 23 or vendor, may commence an action described in paragraph “a” at 24 any time prior to July 1, 2014, if, as of June 30, 2013, more 25 than nine years but ten years or less have elapsed since the 26 proof and record of service of notice of forfeiture required by 27 section 656.6 was filed of record. 28 c. This subsection is repealed July 1, 2014. 29 EXPLANATION 30 This bill makes changes relating to the sale of real estate 31 by contract or bond. 32 The bill amends Code section 558.5, relating to a 33 presumption of abandonment of a contract or bond for the sale 34 of real estate. Under current law, a contract or bond for the 35 -4- LSB 1116XC (4) 85 rh/sc 4/ 6

S.F. _____ sale of real estate is presumed abandoned and of no effect if 1 the record of the contract or bond was executed or recorded, 2 as applicable, more than 10 years earlier and no performance 3 had been made on the contract or bond and 10 years have elapsed 4 since the performance date stated in the record of the contract 5 or bond. The bill provides that if the record of the contract 6 or bond for the sale of real estate executed more than 10 years 7 earlier does not indicate a performance date, the contract or 8 bond is presumed abandoned and of no effect when more than 20 9 years have elapsed since the record of the contract or bond 10 was executed or recorded, as applicable. Code section 558.5 11 is also amended to remove a July 1, 1992, date relating to 12 prospective applicability of Code section 558.5 to a contract 13 or bond for the sale of real estate that is not recorded but is 14 referred to in another recorded instrument. 15 This bill amends Code section 614.21, relating to the 16 foreclosure of ancient mortgages. Current law provides that an 17 action to foreclose or enforce any real estate mortgage, bond 18 for deed, trust deed, or contract for the sale or conveyance 19 of real estate, after 20 years from the date thereof, as shown 20 by the record of such instrument, shall not be barred under 21 certain circumstances. The bill provides that a vendee of a 22 real estate contract or bond for deed, or a vendee’s successor 23 in interest, who is barred under Code section 614.21 from 24 maintaining an action to foreclose or enforce the contract or 25 bond and who is in physical possession of the property may 26 serve the vendor with a demand for a deed as provided in the 27 contract. The written notice may be served personally or by 28 publication, on the same conditions, and in the same manner as 29 is provided for the service of original notices, except that 30 when the notice is served by publication an affidavit shall 31 not be required before publication. Service by publication 32 shall be deemed complete on the day of the last publication. 33 The bill also provides for service on a judgment creditor of 34 a deceased vendor or any other person who is, as a matter of 35 -5- LSB 1116XC (4) 85 rh/sc 5/ 6

S.F. _____ record, interested in the estate of a deceased vendor. The 1 demand shall state that if a deed is not provided within 45 2 days of service and an action to foreclose or forfeit the 3 contract has not been commenced within such period, the vendee 4 may file an affidavit showing service. In such a case the 5 county auditor is required to correct the county records to 6 indicate that the rights of the vendor have vested in the 7 vendee. 8 The bill amends Code section 656.3 to specify that the 9 written notice that a vendor is required to serve on a vendee 10 pursuant to Code section 656.2 to forfeit a contract for the 11 sale of real estate located in this state may be served on a 12 judgment creditor of a deceased vendor or on any other person 13 who is, as a matter of record, interested in the estate of a 14 deceased vendor in the manner provided for service of process 15 in Code section 654.4A. 16 The bill provides that an action that asserts a claim against 17 real estate previously subject to a forfeiture proceeding, 18 based upon a defect in the forfeiture proceeding, shall not be 19 commenced by a vendee who is not in possession of the property, 20 or by a party to the forfeiture proceeding who is other than 21 a vendee or vendor, in which the proof and record of service 22 of notice of forfeiture has been filed of record for more than 23 10 years. A vendee who is not in possession of the property, 24 or a party to the forfeiture proceeding who is other than the 25 vendee or vendor, may commence such an action at any time prior 26 to July 1, 2014, if, as of June 30, 2013, more than nine years 27 but 10 years or less have elapsed since the proof and record of 28 service of notice of forfeiture was filed of record. The bill 29 repeals this provision on July 1, 2014. 30 -6- LSB 1116XC (4) 85 rh/sc 6/ 6