What is advantageous for the trustor to include in a trust deed?

Including a subordination clause in a trust deed is advantageous for the trustor because it allows for flexibility in financing options. When a trustor needs to secure additional financing, a subordination clause can enable the trustor to allow new loans to take priority over the existing trust deed. This can make it easier to refinance or obtain further funding since it assures lenders that their claims will be satisfied before older obligations.

In real estate transactions, this flexibility can facilitate more favorable lending terms for the trustor, as new investors or lenders may be more willing to lend when they know their interest will be prioritized over previous debts. This makes the property more attractive for investment and can help support the trustor's financial goals.

Other types of clauses, such as penalty or late fee clauses, primarily serve to penalize the borrower for non-compliance and do not inherently add value in terms of financial flexibility. A prepayment clause could restrict the trustor’s ability to pay off debts early without incurring additional costs, which may not align with their financial strategy.