Master Guidance Line Documents
A master deed of trust for a guidance line of credit streamlines residential construction and lot loan transactions for builders and lenders. Once recorded in the project's county, the builder and lender can expedite specific loans by referencing the master deed, saving time and resources.
Texas-based PPDocs has enhanced this process. Our master guidance line documents, including a master deed of trust, address key issues for both parties. Additionally, we have recorded this master deed in over 40 Texas counties.
In practice, builders and lenders sign the master trust deed at the start of a designated period (typically one year) and appoint authorized agents to handle supplemental documents for individual loans. This enables faster loan closures with the necessary protection for lenders, while builders benefit from reduced recording and other fees through the use of a short form deed of trust for each transaction.
How Does the Builder Benefit?
Streamlined Loan Requests
Builder sends a physical or electronic loan request to the lender.
Efficient Documentation
Lender populates a short form deed of trust and closing instructions (typically under three pages).
Quick Loan Closures
In counties with electronic recording, documents are scanned and the title company closes the loan promptly.
Convenient Signing Process
Builder’s designated agent signs all documents at the title company office, allowing the builder to start the project immediately.
Replicable Process
The process is easily replicated for each subsequent loan request.
How Does the Lender Benefit?
Pre-Recorded Master Deed
Master deed of trust recorded in 40 populated Texas counties. Over 30 counties accept electronic recording, expediting the process and reducing recording fees.
Universal Applicability
Master deed is not lender-specific and can be used by any lender. Short form deeds for individual transactions can include lender-specific terms, referencing the master deed.
Streamlined Approval Process
Lenders approve each loan according to their internal procedures. A master loan agreement and document set is created for each approved loan.
Efficient Document Generation
Lender inputs loan terms into PPDocs' online order form, PPDocs then generates master construction loan documents, specific guarantees, and resolutions at no additional charge.
Flexible Promissory Note Options
PPDocs can generate either a master promissory note for all transactions or individual notes for each separate transaction.
How Subsequent Closings Work
Borrower Requests Specific Loan Approval
When the borrower requests an interim residential loan or lot closing, they send the request to the lender via fax, email, or another agreed method, using the form specified in Exhibit A of the Master Construction Loan Agreement.
Lender Creates Loan Specific Data and Sends Short Package to Title Co.
If approved, the lender completes the online forms, and our system generates the necessary documents. Full title and survey review is available on request. For eRecording counties, the lender can instruct the title company to e-record or handle scanning and eRecording through PPDocs. No more "Early Starts"!
Builder Signs Short Package at Title Co.
The builder, or any other authorized party he/she designated in the Master Doc set, can sign on behalf of builder.
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