Subordination and Disclosure Instructions
In regards to the above referenced escrow, INSERT NAME OF TITLE AND ESCROW COMPANY is instructed to close and record based on the instructions and acknowledgements contained herein. Escrow is to rely solely on these instructions for the purpose of closing their escrow and issuing title insurance irregardless of the existence of any other agreements regarding these matters.
1. Escrow is instructed to type and record a subordination agreement in the content and form attached hereto as Exhibit A (attach appropriate company form). Said subordination agreement will subordinate that certain Trust Deed executed by ___________________ (trustor) in favor of (beneficiary) in the amount of ________ (SUBORDINATED TRUST DEED) to a Trust Deed executed by ______________________ (trustor) in favor of (beneficiary) in the amount of _________ (SENIOR TRUST DEED). Escrow makes no representations regarding the terms of the loan now being made as being in accordance with any previous agreements to subordinate.
2. The beneficiary under the SUBORDINATED TRUST DEED has read and approves the SENIOR TRUST DEED, the note which it secures and the building loan agreement, if applicable.
3. If the SENIOR TRUST DEED is for construction purposes, the undersigned acknowledge that the property is over-encumbered. FURTHER, _____________________________ HAS NO CONTROL OVER THE DISBURSEMENT OF PROCEEDS OF THE LOAN AND MAKES NO REPRESENTATIONS OR ASSURANCES THAT THE CONSTRUCTION LOAN PORCEEDS WILL BE USED TO IMPROVE THE SUBJECT PROPERTY.
4. The beneficiary under the SUBORDINATED TRUST DEED understands that should a foreclosure action begin on the SENIOR TRUST DEED, his security would be at risk unless funds were advanced to bring the SENIOR TRUST DEED current. The beneficiary under the SUBORDINATED TRUST DEED also understand that should he completed a forclosure action, he would acquire the property subject to the SENIOR TRUST DEED and would be responsible for that obligation.
5. The undersigned acknowledge that __________________________ has recommended that they consult with legal counsel regarding the Subordination Agreement/priority of the trust deeds referenced herein and the matter addressed in these instructions, and that _________________________ has given no advice of any nature with respect to said subordination.
6. The following fees will be incured in regards to said subordination: