Lender’s Estoppel Certificate
Basic Information
Date:
Borrower:
Borrower’s Mailing Address:
Prior Lender:
Prior Lender’s Mailing Address:
Prior Lender’s Note: Note dated [date], in the original principal amount of $[amount], executed by Borrower and payable to Prior Lender.
Prior Lender’s Deed of Trust: [include recording information]
Subordinate Lender:
Subordinate Lender’s Mailing Address:
Subordinate Lender’s Loan:
Property:
Clauses and Covenants
Borrower has requested Subordinate Lender to make a loan to be secured by the Property, and Subordinate Lender has agreed that the liens securing the note evidencing Subordinate Lender’s Loan will be subordinate to the liens securing Prior Lender’s Note. As a condition to making Subordinate Lender’s Loan, however, Subordinate Lender requires Prior Lender to verify the following information concerning Prior Lender’s Note. Prior Lender understands that Subordinate Lender will rely on this information in connection with the closing of Subordinate Lender’s Loan.
1.Prior Lender certifies to Subordinate Lender the following:
a.True copies of Prior Lender’s Note and Prior Lender’s Deed of Trust are attached as Exhibits [exhibit numbers/letters].
b.Prior Lender’s Note and Prior Lender’s Deed of Trust have not been renewed, extended, modified, or amended [include if applicable: , except as evidenced by the documents attached as Exhibits [exhibit numbers/letters]].
c.Prior Lender is the present owner and holder of Prior Lender’s Note.
d.The unpaid principal balance of Prior Lender’s Note as of Date is $[amount].
e.The amount of accrued unpaid interest on Prior Lender’s Note as of Date is $[amount].
f.All amounts required to be paid as of Date under the terms of Prior Lender’s Note and Prior Lender’s Deed of Trust and any other loan documents have been paid in full.
g.No default exists under the terms of Prior Lender’s Note or Prior Lender’s Deed of Trust or any other loan documents.
h.The amount of $[amount] is held in escrow by Prior Lender for the payment of taxes and other amounts required to be escrowed under the terms of Prior Lender’s Note and Prior Lender’s Deed of Trust.
2.Prior Lender agrees that Prior Lender’s Deed of Trust will not secure any indebtedness other than the indebtedness evidenced by Prior Lender’s Note, and Prior Lender waives the provisions of any future advance or dragnet clause that would cause Prior Lender’s Deed of Trust to secure other indebtedness of Borrower.
3.Prior Lender agrees that Subordinate Lender’s Loan will not cause Prior Lender’s Note to be in default, and Prior Lender waives the provisions of any due-on-sale clause or due-on-encumbrance clause that would make Subordinate Lender’s Loan a default under Prior Lender’s Note or Prior Lender’s Deed of Trust.
4.Prior Lender agrees to give Subordinate Lender written notice of default not less than [number] days before any acceleration of the unpaid balance of Prior Lender’s Note. Any notice required or permitted under this agreement must be in writing. Any notice required by this agreement will be deemed to be given (whether received or not) the earlier of receipt or three business days after being deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown in this agreement. Notice may also be given by regular mail, personal delivery, courier delivery, or e-mail and will be effective when received. Any address for notice may be changed by written notice given as provided herein.
5.Prior Lender agrees to accept payments on Prior Lender’s Note from Subordinate Lender with the understanding that Subordinate Lender in no way obligates itself to make any payments.
6.If Prior Lender transfers Prior Lender’s Note to any other party, Prior Lender agrees to notify the transferee of the terms of this estoppel certificate and obtain the transferee’s consent to its terms and conditions.
[Name of prior lender]