Engaging with the LPB-35 form requires an understanding of the intricacies of subordination agreements within the realm of mortgage and property laws. At its core, this document serves as a pivotal legal instrument where the original mortgage holder (termed as 'subordinator') agrees to prioritize the lien of a new lender over their own. This decision is not made lightly, as it effectively alters the hierarchy of claims against the property in question, placing the subordinator's financial interest below that of another. The form outlines the agreement's specifics, including the identification of the subordinator, the new lender, and the property owner, along with the initial mortgage details. It clarifies that such subordination is done in consideration of certain benefits to the subordinator from the property owner, and is crucial for the new lender to proceed with their loan. The document emphasizes the need for thorough understanding and agreement on the terms by all parties involved before its execution. Moreover, it underscores the exclusivity of this agreement in superseding any prior arrangements related to the subordination of liens. The binding nature of the agreement on heirs, administrators, and successors is also highlighted, ensuring that the agreement's terms extend beyond the immediate parties involved. Importantly, the form carries a notice stressing the potential use of the loan for purposes other than property improvement and recommends seeking legal counsel before proceeding, underscoring the form's significance and potential implications for the parties involved.
| Question | Answer |
|---|---|
| Form Name | Form Lpb 35 |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Other names | wa000420 state of ohio subordination agreement form |
AFTER RECORDING MAIL TO:
Name
Address
City, State, Zip
Filed for Record at Request of:
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.
The undersigned subordinator and owner agrees as follows:
1.________________________________ referred to herein as "subordinator," is the owner and holder of a mortgage dated ______________________ which is recorded in volume _____________ of Mortgages, page______under auditor's file No._________________, records of ____________________________
County.
2._____________________________ referred to herein as "lender," is the owner and holder of a mortgage
dated____________________executedby
__________________________________________________ (which is recorded in volume
_________________ of Mortgages, page __________ under auditor's file No.__________, records of
_________________ County) (which is to be recorded concurrently herewith).
3.________________________________referred to herein as "owner," is the owner of all the real property described in the mortgage identified above in Paragraph 2.
4.In consideration of benefits to "subordinator" from "owner," receipt and sufficiency of which is hereby acknowledged, and to induce "lender" to advance funds under its mortgage and all agreements in connection therewith, the "subordinator" does hereby unconditionally subordinate the lien of his mortgage identified in Paragraph 1 above to the lien of "lender's" mortgage, identified in Paragraph 2 above, and all advances or charges made or accruing thereunder, including any extension or renewal thereof.
5."Subordinator" acknowledges that, prior to the execution hereof, he has had the opportunity to examine the terms of "lender's" mortgage, note and agreements relating thereto, consents to and approves same, and recognizes that "lender" has no obligation to "subordinator" to advance any funds under its mortgage or see to the application of "lender's" mortgage funds, and any application or use of such funds for purposes other than those provided for in such mortgage, note or agreements shall not defeat the subordination herein made in whole or in part.
6.It is understood by the parties hereto that "lender" would not make the loan secured by the mortgage in Paragraph 2 without this agreement.
7.This agreement shall be the whole and only agreement between the parties hereto with regard to the subordination of the lien or charge of the mortgage first above mentioned to the lien or charge of the mortgage in favor of "lender" above referred to and shall supersede and cancel any prior agreements as to such, or any, subordination including, but not limited to, those provisions, if any, contained in the mortgage first above mentioned, which provide for the subordination of the lien or charge thereof to a mortgage or mortgages to be thereafter executed.
8.The heirs, administrators, assigns and successors in interest of the "subordinator" shall be bound by this agreement. Where the word "mortgage" appears herein it shall be considered as "deed of trust," and gender and number of pronouns considered to conform to undersigned.
Executed this ________ day of ________________________, __________.
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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 THAN IMPROVEMENT OF THE LAND. IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH HIS/HER/THEIR ATTORNEYS WITH RESPECT THERETO.
By________________________________________ |
By________________________________________ |
By________________________________________ |
By________________________________________ |
By________________________________________ |
By________________________________________ |
By________________________________________ |
By________________________________________ |
STATE OF __________________________________ )
COUNTY OF ________________________________ )
I certify that I know or have satisfactory evidence that _________________________________________________________
(is/are) the person(s) who appeared before me, and said person(s) acknowledged that (he/she/they) signed this instrument and acknowledged it to be (his/her/their) free and voluntary act for the uses and purposes mentioned in this instrument.
Dated: ___________________________________
________________________________________________________
Notary Public in and for the state of ___________________________
My appointment expires: ____________________________________
STATE OF __________________________________ )
COUNTY OF ________________________________ )
I certify that I know or have satisfactory evidence that _________________________________________________________
(is/are) the person(s) who appeared before me, and said person(s) acknowledged that (he/she/they) signed this instrument, on oath stated that (he/she/they) (is/are) authorized to execute the instrument and acknowledged it as the ________________________of
to be the free and voluntary act of such party(ies) for the uses and purposes mentioned in this instrument.
Dated: ____________________________________
_______________________________________________________
Notary Public in and for the state of __________________________
My appointment expires: ___________________________________
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