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Posted almost 10 years ago

Loan Documents Series: Deed of Trust- Inspections

I am working on a Deed of Trust at the moment and I always seem to come across language in each and every security instrument that deals with "inspections" and the Lender and/or its agents being able to make reasonable entries upon and inspections of the Property.  I love editing this provision two ways:

  • Make sure the Lender only has this right only upon providing you prior reasonable notice (a simple 5 business day prior  notice if you're aggressive or a simple 1-2 business day notice if you're realistic).
  • Also, always make this inspection right subject to the current lease. This is important, because lets say you are purchasing a Property that has a Taco Bell on it. You would not want the Lender to conduct the inspections during peak business hours or disrupt Taco Bell's ability to conduct its  business as it is permitted to do under its Lease.

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