Swiss Prop. Mgmt. Co. v. S. Cal. Ibew-Neca Pension Plan
Opinion
Opinion
Hollenhorst, J.
The trial court found that a California Land Title Association (CLTA) form subordination agreement was effective to give the lender’s deed of trust priority over the sellers’ deeds of trust.
In the trial court, and in this court, plaintiff sellers vigorously attack this conclusion, contending that riders to the deed of trust set forth conditions of subordination that were agreed to between the buyer and sellers. The sellers contend that the lender had the duty to ensure compliance with the terms of subordination in the riders and, because the lender failed to do so, the lender lost the priority given by the CLTA subordination agreements.
We agree with the trial court that the lender could properly rely on the CLTA subordination agreements. Accordingly, we affirm the judgment.
Facts
Plaintiffs, Karel F. Lindemans, Swiss Property Management Co., Inc., and Western Real Estate Corporation, were the owners of two adjacent parcels of real property located near Rancho California. In 1988, they agreed to sell the properties to Westamerica Properties Group, Inc. for $4.5 million. The sellers agreed to take back deeds of trust as part of the purchase financing.