California Loan Servicing and Tenancy in Common Agreement
Use this downloadable template to create a Loan Servicing and Tenancy in Common Agreement as part of an offering of fractional undivided interests in a promissory note, secured by a first mortgage.
- The agreement is between the investors (lenders) and a loan servicer who has arranged the loan between the lenders and the borrower.
- The servicer is acting as agent for the investors with respect to the promissory note, and no other relationship exists between the parties.
- The borrower will make all payments on the note to the servicer.
- The servicer will provide each lender with monthly statements and with the appropriate tax forms at the end of each year.
- The servicing fees will be paid monthly and will be calculated as a percentage of the principal balance outstanding at that date.
- If a foreclosure of the property is necessary and the servicer is required to manage the property, an additional property management fee will be charged.
- The servicer has the right to hold back a reserve sufficient to pay two months interest payments.
- If an investor fails to pay its pro rata share of any assessment within 10 days of request, that investor's right to receive principal and interest payments will be subordinated to the rights of all investors who have paid their share.
The California Loan Servicing and Tenancy in Common Agreement is a comprehensive legal form that you can tailor to your specific requirements.
Last Updated: 14-April-2016