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HomeMy WebLinkAboutSubordination Agreement5�q �a,t�aa3 RECORDING REQUESTED BY: FIDELITY NATIONAL TITLE Order No Escrow No. 400205171 -MJP Loan No Requested by and WHEN RECORDED MAIL TO' City of Arroyo Grande 300 E. Branch Street Arroyo Grande, CA 93420 Attn: City Clerk _ IS LINE FOR RECORDER'S USE ONLY JULIE RODEWALD San Luis Obispo County— Clerk/Recorder Recorded at the t Fidelitv Title SN 2/24/2012 2:17 PM D O C a: 2012010330 Titles: 1 Pages: 5 Fees 0.00 III IIII II IIII VIIIIIIIIIIIII IIII Others 0.00 PAID 50.00 SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this 16th day of February, 2012, by Judy Fournier, an unmarried woman who acquired title as Judy Dillon, an unmarried woman, owner of the land hereinafter described and hereinafter referred to as "Owner ", and The City of Arroyo Grande, present owner and holder of the deed of trust first hereinafter described and hereinafter referred to as "Beneficiary ", WITNESSETH That whereas, Owner has executed a deed of trust, dated May 8, 2008, Instrument No 2008025467 to City of Arroyo Grande as trustee, covering: SEE ATTACHED EXHIBIT "A" AND BY REFERENCE MADE A PART HEREOF to secure performance under the Buyer's Occupancy and Resale Agreement with Option to Purchase, dated May 8, 2008, in favor of Beneficiary; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $66.600.00 dated 2/17/2012 In favor of Wells Fargo Bank, N.A , hereinafter referred to as "Lender', payable with interest and upon the terms and conditions described therein, which deed of trust is also to be recorded concurrently herewith; and WHEREAS, Lender Is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of said deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood, and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees, and acknowledges that (a) He consents to and approved (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part, (c) He intentionally and unconditionally waives, relinquishes, and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAT IMPROVEMENT OF LAND. THE CITY OF ARROYO GRANDE , Steven Adams Beneficiary City Manager Own Judy rnie (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO State of California ) County of San Luis Obispo ) On g. % 7, 20 %2 before me, M6Gl1AS2, "A _ 4-u..tY0 , Notary Public (here insert name and title of the officer), personally appeared Judy Fournier, who proved to me on the basis of satisfactory evidence to be the person;4 whose namejM is /.we subscribed to the within instrument and acknowledged to me that>e /she /tbey executed the same in Jbis /her /tWr authorized capacity(Jes), and that by hWher/thdr signaturexon the instrument the person, or the entity upon behalf of which the personpr) acted, executed the instrument. I certify under PENALTY OF correct. , WITNESS my hand and Signature (notary)(12 -07) under the laws of the State of California that the foregoing paragraph is true and MICHAEL A. LUND Commission # 1915308 (Seal) Notary Public - California = _ ' San Luis Obispo County M Comm. Expires Oec 30, 2014 State of California ) County of San Luis Obispo ) On before me, Notary Public (here insert name and title of the officer), personally appeared Steven Adams, who proved to me on the basis of satisfactory evidence to be the person(4whose name(d) is /aresubscribed to the within instrument and acknowledged to me that he/sheAhey executed the same in his /HefOheir authorized capacity(fes), and that by his /Uw4t ielr signature(e}on the instrument the person(e) or the entity upon behalf of which the person(gj acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) (notary)(12 -07) LePS KITTY NORTON Commlaelon o 1924921 Notary Public • California Ben Luis Obispo County Comm. E Tres Mar 9. 2015 r Escrow No.: 11- 400205171 -MJP Loci3te Wer: CAFNT0940 -0940- 0002 - 0400205171 Title No.: 11- 400205171 -RB EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ARROYO GRANDE, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: A Condominium comprised of: Parcel 1: Airspace Envelope No. 12 of Tract 2616, in the City of Arroyo Grande, County of San Luis Obispo, State of California, as shown and particularly described on the First Amended Condominium Plan for Tract 2616, recorded January 11, 2007 as Instrument No. 2007 - 002198 of Official Records. Excepting and reserving therefrom, a non - exclusive easement for access, ingress, egress, encroachment, maintenance, repair, drainage, support and for other purposes, all as described in the Second Amended and Restated Declaration of Covenants, Conditions and Restrictions establishing a Plan of Condominium Ownership of Tract 2616 ( "Declaration "), recorded March 7, 2007 as Instrument No. 2007 - 015380 of Official Records. Parcel 2: An undivided 1/61 interest as a tenant in common in the Undivided Interest Common Area as defined in the Declaration, referred to above, which Undivided Interest Common Area consists of the real property described as Lot 1 of Tract 2616, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to Map recorded July 19, 2005 in Book 26, Pages 81 and 82 of Maps, in the Office of the County Recorder of said County, including any Undivided Interest Common Area duly joined through a duly authorized Declaration of Annexation pursuant to the Declaration. Excepting and reserving therefrom, Airspace Envelopes 1 through 61 inclusive, and any and all improvements that are or will be located thereon. Also excepting and reserving therefrom, non - exclusive easements for access, ingress, egress, encroachment, maintenance, repair, drainage, support, and for other purposes, all as described in the Declaration. Parcel 3: An exclusive easement for storage and parking appurtenant to Parcel One, which storage area and parking area are defined in the Declaration, for use as may be permitted in the Declaration. Parcel 4: Non - exclusive rights appurtenant to Parcel One above, for access, ingress, egress, encroachment, maintenance, repair, drainage, support and for other purposes all as described in the Declaration referred to above. APN:007- 776 -012 Exhibit Page - Legal(exhibit)(08 -07) END OFDOCUMENT