Form 3140 - Condominium Rider Form printable pdf download

CONDOMINIUM RIDER

THIS CONDOMINIUM RIDER is made this _____________ day of ______________________, ______, and is

incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust, or Security Deed (the “Security

Instrument”) of the same date given by the undersigned (the “Borrower”) to secure Borrower’s Note to ______________________

__________________________________________________________________ (the “Lender”) of the same date and covering

the Property described in the Security Instrument and located at:

_______________________________________________________________________________________________________

[Property Address]

The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as:

_______________________________________________________________________________________________________

[Name of Condominium Project]

(the “Condominium Project”). If the owners association or other entity which acts for the Condominium Project (the “Owners

Association”) holds title to property for the benefit or use of its members or shareholders, the Property also includes Borrower’s

interest in the Owners Association and the uses, proceeds and benefits of Borrower’s interest.

CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument,

Borrower and Lender further covenant and agree as follows:

A. Condominium Obligations. Borrower shall perform all of Borrower’s obligations under the Condominium

Project’s Constituent Documents. The “Constituent Documents” are the: (i) Declaration or any other document which

creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower

shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents.

B. Property Insurance. So long as the Owners Association maintains, with a generally accepted insurance

carrier, a “master” or “blanket” policy on the Condominium Project which is satisfactory to Lender and which provides

insurance coverage in the amounts (including deductible levels), for the periods, and against loss by fire, hazards

included within the term “extended coverage,” and any other hazards, including, but not limited to, earthquakes and

floods, from which Lender requires insurance, then: (i) Lender waives the provision in Section 3 for the Periodic

Payment to Lender of the yearly premium installments for property insurance on the Property; and (ii) Borrower’s

obligation under Section 5 to maintain property insurance coverage on the Property is deemed satisfied to the extent that

the required coverage is provided by the Owners Association policy.

What Lender requires as a condition of this waiver can change during the term of the loan.

Borrower shall give Lender prompt notice of any lapse in required property insurance coverage provided by the

master or blanket policy.

In the event of a distribution of property insurance proceeds in lieu of restoration or repair following a loss to

the Property, whether to the unit or to common elements, any proceeds payable to Borrower are hereby assigned and

shall be paid to Lender for application to the sums secured by the Security Instrument, whether or not then due, with the

excess, if any, paid to Borrower.

C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the

Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to

Lender.

D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to

Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of

the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender.

Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Section 11.

E. Lender’s Prior Consent. Borrower shall not, except after notice to Lender and with Lender’s prior written

consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium

Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other

casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the

Constituent Documents if the provision is for the express benefit of Lender; (iii) termination of professional management

and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of

rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender.

F. Remedies. If Borrower does not pay condominium dues and assessments when due, then Lender may pay

them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the

Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest

MULTISTATE CONDOMINIUM RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT

Form 3140

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Form 3140 - Condominium Rider Form

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