2023-191839Recording Requested By:
First American Title Company
Homebuilder Services Division
NO FEE FOR RECORDING
PURSUANT TO GOV. CODE SECTION 27383
Recording Requested By:
City of Encinitas
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
DOC# 2023-0191839
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Jul 20, 2023 01:00 PM
OFFICIAL RECORDS
JORDAN Z. MARKS,
SAN DIEGO COUNTY RECORDER
FEES: $0.00 (SB2 Atkins: $0.00)
PAGES: 11
(SPACE ABOVE LINE FOR RECORDER'S USE ONLY)
Cs79 3733
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.
i-
This SUBORDINATION AGREEMENT (this "Agreement') made this 18l' day
Of IA% , 2023, by and among (i) the CITY OF ENCINITAS ("City'), (ii) Jonathan
C. Lain nd Lisa N.,Lain, husband and wife as joint tenants ("Borrower"), and (iii) First
American Title Company ("Lender"). Hereafter, City, Borrower and Lender are
sometimes referred to as a "Party" and collectively as the "Parties".
RECITALS
A Borrower is the owner of certain real property located in the City of Encinitas,
County of San Diego, State of California (the "Property"), as more particularly described in
Exhibit A attached hereto and incorporated herein by this reference.
B. Concurrently with recordation of this Subordination Agreement, the Lender is
making a loan ("Lender Loan") which will be secured by a deed of trust ("Lender Deed of
Trust"), executed by the Trustor in favor of the Lender, which Lender Deed of Trust is being
recorded against the Property in the Office of the Recorder of the County of San Diego,
State of California.
C. Concurrently with recordation of this Subordination Agreement, the Borrower
is causing the following to be recorded against the Property in the Office of the Recorder of
----------- -- — - - - ------ ---------- Page 1
Recording Requested By:
First American Title Company
Homebuilder Services Division
NO FEE FOR RECORDING
PURSUANT TO GOV. CODE SECTION 27383
Recording Requested By:
City of Encinitas
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
APN: 260-131-50-00 (SPACE ABOVE LINE FOR RECORDER'S USE ONLY)
(,7g 3733
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 SUBORDINATION AGREEMENT (this "Agreement') made this IItY day
Of J IA %, , 2023, by and among (i) the CITY OF ENCINITAS ("City'), (ii) Jonathan
C. Lain -'and Lisa N. Lain, husband and wife as joint tenants ("Borrower"), and (iii) First
American Title Company ("Lende►"). Hereafter, City, Borrower and Lender are
sometimes referred to as a "Party" and collectively as the "Parties".
RECITALS
A Borrower is the owner of certain real property located in the City of Encinitas,
County of San Diego, State of California (the "Property'), as more particularly described in
Exhibit A attached hereto and incorporated herein by this reference.
B. Concurrently with recordation of this Subordination Agreement, the Lender is
making a loan ("Lender Loan") which will be secured by a deed of trust ("Lender Deed of
Trust"), executed by the Trustor in favor of the Lender, which Lender Deed of Trust is being
recorded against the Property in the Office of the Recorder of the County of San Diego,
State of California.
C. Concurrently with recordation of this Subordination Agreement, the Borrower
is causing the following to be recorded against the Property in the Office of the Recorder of
Page 1
the County of San Diego, State of California: (i) an Affordable Housing Agreement
("Affordable Housing Agreement") by and between the City and Borrower; and (ii) a Deed
of Trust ("City Deed of Trust"), executed by the Borrower in favor of the City.
D. City, Borrower and Lender all agree and desire to execute this Agreement to,
among other things, (memorialize their understanding and agreement with regard to the
respective priorities of each of the above -referenced documents. It is the intention of the
parties that the Lender Deed of Trust shall unconditionally be and remain at all times a lien,
claim and charge on the Property prior and superior to the City Deed of Trust.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and for the
mutual covenants contained herein, the Parties hereby agree as follows:
1. Agreement to Subordinate. Subject to the terms of this Agreement, City and
Borrower agree to unconditionally subject and subordinate the lien, claim and charge of the
City Deed of Trust, and all present and future indebtedness and obligations secured thereby,
in favor of the liens, claims and charges upon the Property of the Lender Deed of Trust. The
Lender Deed of Trust will be and remain at all times liens, claims or charges on the Property
prior and superior to the City Deed of Trust, and to all rights and privileges of City and
Borrower thereunder. The Parties hereby acknowledge that this Agreement only
subordinates the Affordability Deed of Trust and does not subordinate the Affordable
Housing Agreement.
2. Consent to Loan. City hereby consents to the making of the Lender Loan to
Borrower by Lender and to the encumbrance of the Property with the Lender Deed of Trust.
City hereby further consents to any transfer of the Property, or any interest or rights therein,
in connection with Lender's exercise of any of its rights and remedies under the documents
evidencing the Lender Loan, including, without limitation, the sale of the Property pursuant
to a judicial or non -judicial foreclosure, the transfer of the Property by deed in lieu thereof,
the appointment of a receiver to operate and manage the Property, and the appointment of
a professional management company to operate and manage the Property from and after
the date upon which Lender or any affiliate of Lender, or any of their respective successors
and assigns as holders of the note evidencing the Lender Loan, acquires title to the Property
through foreclosure or deed in lieu thereof.
3. Notices. City and Borrower agree to give Lender copies of all notices of default
under the City Deed of Trust and Affordable Housing Agreement. All notices under this
Agreement shall be in writing and shall be delivered to the appropriate party at the address
set forth below (subject to change from time to time by written notice to all other parties to
this Agreement). All notices, demands or other communications shall be considered as
properly given upon receipt or rejection. Notices shall be delivered personally, by certified
mail United States Postal Service mail, postage prepaid return receipt requested, or by
Overnight Express Mail or by overnight commercial courier service, charges prepaid with
proof of delivery. For purposes of notice, the address of the Parties shall be as follows:
Page 2
If to Borrower: Jonathan C. Lain and Lisa N. Lain
1152 East Cove Place
Encinitas, CA 92024
If to Lender:
Attention:
If to City: City of Encinitas
505 S. Vulcan Avenue
Encinitas, California 92024
Attention: Development Services Director
4. Entire Agreement. This Agreement shall be the entire agreement with regard to the
priority of the liens, claims and charges of the Lender Deed of Trust and the City Deed of Trust
and shall supersede and cancel any prior agreements as to such priority.
5. Governing Law. This Agreement will be governed by, and construed and enforced in
accordance with, the laws of the State of California.
6. Binding Effect, This Agreement shall inure to the benefit of, and shall be binding upon,
the Parties hereto and their respective heirs, legal representative, successors, and assigns.
7. Counterparts. This Agreement may be signed in multiple counterparts with the same
effect as if all signatories had executed the same instrument.
[signatures to follow]
Page 3
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date first set forth above.
"CITY"
ClT F ENCINITAS
B.
Name: Pamela Antil
Its: City Manager
(Notarization of signature must be attached)
Signature Page I of 3 to Subordination Agreement
"BORROWER"
J a n C. Lain
(Npta �ization of signature must be attached)
Lisa N. Lain
(Notarization of signature must be attached)
Signature Page 2 of 3 to Subordination Agreement
111154090-N
By:
Name:
Its:
(Notarization of signature must be attached)
/,/r -ic " oll 3 :1g,�vl,1;?"i'hl
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego
On c� \1,,�V� � ��� 2023, be me, ,
notary publiC,Orsonally appeared bks4 e\C". �A�Vv' who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the
same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) 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)
*my
DEANA GAY
Notary Public . California
San Diego County
Commission # 2396124
Comm. Expires Mar 8, 2026
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego
On JT ay lq , 2023, before me, D - A- /� a e q I e re
notary publid, personally appeared J o a tha r- C • Li J who
proved to me on the basis of satisfactory evidence to be the person(s) whose name( re
subscribed to the within instrument and acknowledged to me tha *Ishe/they executed the
same in i G er/their authorized capacity(ies), and that by hls%her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) 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.
�s,,L °-`..44F 0. A. RUGGIERO
WITNESS my hand and official seal. - _= Notary Public - California
Orange County n
" Commission k 2305493
—'° My Comm. Expires Oct 12, 2023
Signature ''� (Seal)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
State of California
County of San Diego�� )
On J ct q, 2023, before me, l� - PLC
notary public, personally appeared Li'SGC IV , Ui411 � who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(sre
subscribed to the within instrument and acknowledged to me that he�they executed the
same in his/their authorized capacity(ies), and that by his er heir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) 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.
�5 °`.rF D.A.RUGGIERO
�" = Notary Public . California
WITNESS my hand and official seal. _ :rt-�= Orange County
Commission M 2306493
Fo^ My Comm. Expires Oct 12, 2023
Signature (Seal)
Exhibit "A"
Legal Description
Real property in the City of Encinitas, County of San Diego, State of California, described as
follows:
LOT 8 OF TRACT 16488
PARCEL 1:
LOT 8 ("PROPERTY") OF THE CITY OF ENCINITAS TM 18-001, ACCORDING TO MAP THEREOF
NO. 16488, FILED ON DECEMBER 20, 2021 IN THE OFFICE OF THE COUNTY RECORDER OF
SAN DIEGO COUNTY, STATE OF CALIFORNIA ("MAP")
RESERVING THEREFROM, FOR THE BENEFIT OF GRANTOR, ITS SUCCESSORS IN
INTEREST, ASSIGNS AND OTHERS, WITH THE RIGHT TO GRANT AND TRANSFER SAME
EASEMENTS FOR ACCESS, INGRESS, EGRESS, UTILITIES, ENCROACHMENT, PRIVATE
YARD, SUPPORT, MAINTENANCE, DRAINAGE, REPAIR AND FOR OTHER PURPOSES, ALL AS
MAY BE SHOWN ON THE MAP, OR AS DESCRIBED AND/OR DEPICTED IN THE DECLARATION
HEREINAFTER REFERRED TO. IN THE EVENT GRANTOR HAS CONVEYED A LOT
BENEFITTED BY SAID EASEMENT(S) AND THEREBY GRANTED SAID EASEMENT(S)
PRIOR TO THE CONVEYANCE OF THE HEREIN PROPERTY, THEN THIS PARCEL L SHALL BE
SUBJECT TO SAID EASEMENT(S).
FURTHER RESERVING THEREFROM ALL EASEMENTS, RIGHTS, DUTIES AND OBLIGATIONS
AS SET FORTH IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
EAST COVE COTTAGES MAINTENANCE CORPORATION RECORDED JANUARY 31, 2022, AS
DOCUMENT NO. 2022-0045353, IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER,
TOGETHER WITH ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY, THE
"DECLARATION") FOR THE BENEFIT OF "DECLARANT" AS THEREIN DEFINED.
RESERVING THEREFROM UNTO THE GRANTOR, THE RIGHT TO ENTER THE PROPERTY
FOR TWELVE YEARS FOLLOWING RECORDATION DATE OF THIS GRANT DEED TO
COMPLETE AND REPAIR ANY IMPROVEMENT OR LANDSCAPING LOCATED THEREON
AND/OR TO CORRECT ANY DEFICIENCIES IN THE RESIDENTIAL CONSTRUCTION, DESIGN,
SPECIFICATIONS, SURVEYING, AND PLANNING ASSOCIATED WITH THE PROPERTY, AS
DETERMINED NECESSARY BY GRANTOR, IN ITS SOLE DISCRETION, AND/OR TO COMPLY
WITH THE REQUIREMENTS FOR THE RECORDATION OF THE MAP, THE GRADING OF SAID
PROPERTY, AND/OR TO COMPLY WITH THE REQUIREMENTS OF APPLICABLE
WARRANTIES, LAWS, AND GOVERNMENTAL AGENCIES. THE PROPERTY IS ALSO SUBJECT
TO A RIGHT OF ENTRY BY GRANTOR OR GRANTOR'S AGENT UNTIL THE EXPIRATION OF
ALL APPLICABLE STATUTES
OF LIMITATIONS FOR THE FILING OF A COMPLAINT OR SUIT OR OTHER LEGAL REMEDIES
AGAINST GRANTOR IN ANY WAY RELATING TO OR ARISING OUT OF THE DEVELOPMENT,
CONSTRUCTION, SALE AND/OR TRANSFER OF THE PROPERTY BY GRANTOR. SUCH
ENTRY BY GRANTOR SHALL BE PRECEDED
BY REASONABLE NOTICE TO GRANTEE BEFORE SUCH ENTRY. IF THIS RESERVATION OF
RIGHT OF ENTRY IS NOT COMPLIED WITH BY GRANTEE, GRANTOR MAY ENFORCE THIS
RIGHT OF ENTRY IN A COURT OF LAW. GRANTEE SHALL BE RESPONSIBLE FOR ALL
DAMAGES ARISING OUT OF SAID BREACH (E.G., REFUSING TO ALLOW ENTRY) INCLUDING
ATTORNEYS' FEES, COSTS AND EXPENSES.
Exhibit A
PARCEL 2:
A PRIVATE YARD EASEMENT OVER THE ADJACENT LOT(S) AS DESCRIBED AND DEPICTED
IN THE DECLARATION HEREINAFTER REFERRED TO. SAID EASEMENT IS APPURTENANT
TO PARCEL 1 ABOVE.
NONEXCLUSIVE EASEMENTS FOR ACCESS, INGRESS AND EGRESS, USE, DRAINAGE,
ENCROACHMENT, SUPPORT AND FOR OTHER PURPOSES, AS SET FORTH IN THE
DECLARATION OR ON THE MAP. THESE EASEMENTS ARE APPURTENANT TO PARCEL 1
ABOVE.
Commonly known as: 1152 East Cove Place, Encinitas, CA 92024
APN #: 260-131-50-00
Exhibit A