Real Estate Law
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By signing the it, you effectively state that any lien you would have on the home would be subordinate to the lender's lien. If you did not sign it and the owner failed to pay you, your lien would have priority. By signing it, your lien would not have priority. In other words, it is the contractor’s consent subordinating both (i) payment obligations under the construction contract to the payment obligations under the loan, and (ii) any mechanic’s liens to the lender’s deed of trust. We can discuss more if you would like to do so.
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