Opinion ID: 1246793
Heading Depth: 1
Heading Rank: 3

Heading: The document continues:

Text: Seller agrees that the above mentioned note shall be second and junior in lein [ sic ] to a first note and deed of trust not to exceed $150,000.00 and shall bear interest of not more than 10% and a repayment in not more than 29 years.  (Emphasis added.) There also appears on the original Receipt and Agreement to Purchase, after the subordination clause, supra, the following inked-in notation: Buyer to submit loan of commitment to Seller. The Receipt and Agreement to Purchase was received in evidence as plaintiffs' Exhibit J, and when it was offered at trial the notation, Buyer to submit loan of commitment to Seller. was x-ed out, with the initials ECS. (E.C. Smith) and W.U. (Woodrow Utley) immediately following the clause. Smith testified that the notation, Buyer to submit loan of commitment to Seller. was added to the agreement when he first submitted it to Mr. Utley for his approval, but that it was later x-ed out in the presence of Mr. Utley and Mr. Pirtle at Smith's office, at the time Utley returned the signed agreement. Mr. Utley flatly denied that the notation was ever struck from the agreement in his presence. An escrow was opened at Land Title Insurance Co. On November 3, 1965, the Utleys went to Land Title and signed their sellers' instructions, which had been prepared by Land Title in accordance with the terms of the Receipt and Agreement to Purchase. There was no mention in the sellers' instructions of a requirement that the buyer was to submit any loan commitment to the Utleys. The sellers' instructions provided for a Note and Trust Deed for $16,500.00 all due and payable 1 year from close of escrow together with 7% interest which seller agrees to subordinate to a 1st note and deed of trust not to exceed $150,000.00 with interest not to exceed 10% amertized [sic] for 29 years. Mr. Utley, who holds a Nevada real estate salesman's license, testified that neither he nor Mrs. Utley read the sellers' instructions prior to signing them. [3] Mr. Pirtle signed the customary buyer's instructions and signed a promissory note to the Utleys in the principal sum of $16,500, with 7% interest  the principal and interest to be payable in 1 year. The deed of trust contained the following provision regarding subordination: This deed of trust is junior and subordinate to certain deed of trust recorded concurrently herewith and any other deed of trust for the purpose of interim financing, not to exceed an aggregate of $150,000.00    (Emphasis added.) The certain deed of trust recorded concurrently herewith was a deed of trust securing the Airosos' promissory note for $11,000, payable in 1 year, including interest at the rate of 10%. Pirtle actually received only $10,000 from the Airosos, which sum was delivered to Land Title and disbursed as follows: Caled Realty Real Estate Commission $1,000.00 Title Fee 198.00 Revenue Stamps 24.75 Escrow Fees 80.00 Drawing Deed Fee 30.00 Lawyers Title, Trustee of Buyer's Deed of Trust, a Prior Lien on the Property: Principal $4705.85 Interest 27.45 Recon & Recording 9.55 Collection 11.76 ________ 4,754.61 Utleys 7.64 _________ Total $6,095.00 The balance of the $10,000, amounting to $3,905, was retained by Pirtle, who defaulted on the Utley and Airoso notes. The Airosos filed notice of default, and the foreclosure sale on their deed of trust was first noticed for February 10, 1967, and then continued to May 5, 1967.