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Second Trust Deed for Philippines

Second Trust Deed Template for Philippines

A Second Trust Deed under Philippine law is a legal instrument that creates a subordinate security interest in real property, ranking behind an existing first trust deed. It serves as collateral for a second loan or obligation, subject to the Property Registration Decree and Civil Code of the Philippines. The document must comply with specific Philippine legal requirements, including proper notarization and registration with the Land Registration Authority. It provides the lender with a security interest in the property while acknowledging the superior rights of the first trust deed holder.

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Second Trust Deed

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What is a Second Trust Deed?

A Second Trust Deed is utilized in Philippine real estate transactions when a property owner seeks additional financing while an existing trust deed is in place. This document is crucial in establishing a secondary security interest in real property, subordinate to the first trust deed. It must comply with Philippine property and security laws, including the Civil Code, Property Registration Decree, and Act No. 3135. The document details the secured obligations, property description, parties' rights and obligations, default provisions, and remedies available under Philippine law. It's commonly used in refinancing, renovation projects, or when property owners need additional capital while maintaining their primary mortgage. The document must be properly executed, notarized, and registered with the Land Registration Authority to be enforceable.

What sections should be included in a Second Trust Deed?

1. Parties: Identification of the Trustor (borrower/grantor), Trustee, and Beneficiary (lender)

2. Background: Recitals explaining the context of the deed, including reference to the first trust deed and the new loan arrangement

3. Definitions: Key terms used throughout the document, including specific Philippine legal terminology

4. Grant of Security Interest: Legal language creating the trust deed and specifically acknowledging its subordinate position to the first trust deed

5. Property Description: Detailed legal description of the secured property, including its certificate of title number

6. Secured Obligations: Description of the debt or obligations secured by this second trust deed

7. Covenants and Warranties: Trustor's promises regarding property maintenance, insurance, taxes, and compliance with laws

8. Default Provisions: Events of default and remedies available to the Beneficiary

9. Power of Sale: Provisions for non-judicial foreclosure under Act No. 3135

10. Notice Requirements: Specific requirements for notices under Philippine law

11. Governing Law: Confirmation of Philippine law as governing law and jurisdiction

12. Execution: Signature blocks and notarial requirements

What sections are optional to include in a Second Trust Deed?

1. Assignment Rights: Section detailing the right to assign the trust deed, used when assignability needs to be specifically addressed

2. Insurance Requirements: Detailed insurance provisions, used when standard covenants need expansion

3. Environmental Provisions: Additional environmental warranties and covenants, used for commercial properties

4. Due on Sale Clause: Provision making the loan due upon property sale, used when required by lender

5. Cross-Default Provisions: Provisions linking defaults under this deed to other agreements, used in complex lending relationships

6. Subordination Terms: Detailed subordination provisions, used when relationship with first trust deed needs specific regulation

What schedules should be included in a Second Trust Deed?

1. Schedule A - Property Description: Detailed technical description of the property, including boundaries and technical specifications

2. Schedule B - Permitted Encumbrances: List of existing liens and encumbrances, including details of the first trust deed

3. Schedule C - Form of Notice: Prescribed form for notices under the deed

4. Appendix 1 - Copy of First Trust Deed: Reference copy of the senior trust deed

5. Appendix 2 - Secretary's Certificate: If Trustor is a corporation, certificate authorizing the transaction

6. Appendix 3 - Special Power of Attorney: If applicable, POA authorizing execution of the deed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Trust Deed

Cost

Free to use
Relevant legal definitions

































Clauses

























Relevant Industries

Real Estate

Banking

Financial Services

Property Development

Construction

Commercial Property

Residential Property

Investment Management

Trust Services

Mortgage Lending

Relevant Teams

Legal

Real Estate

Property Management

Finance

Credit Risk

Compliance

Corporate Secretariat

Investment

Mortgage Operations

Trust Administration

Relevant Roles

Real Estate Attorney

Property Lawyer

Mortgage Officer

Trust Officer

Property Manager

Real Estate Manager

Legal Counsel

Compliance Officer

Credit Risk Manager

Real Estate Developer

Investment Manager

Banking Officer

Property Rights Specialist

Title Officer

Loan Officer

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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