This office lease form is an agreement entered into in connection with a certain loan which the lender has made to the landlord and secured, in part, by a mortgage, assignment of the leases and rents and security agreement on the premises. This form describes the issues of mortgage subordination and a tenants agreement to hold the land as the tenant of a new landlord.
A subordination of mortgage and attornment agreement is a legal document used in Arkansas that establishes the priority of different mortgages and/or leases over a property. This agreement is typically entered into by lenders and tenants and helps protect the interests of both parties in the event of a property foreclosure or sale. In Arkansas, there are two primary types of subordination of mortgage and attornment agreements: 1. Subordination of Mortgage Agreement: This type of agreement is commonly used when a property owner wishes to refinance an existing mortgage or obtain additional financing. The subordination agreement allows a new lender to have a higher priority lien on the property, while the original mortgage remains in effect but takes a lower priority position. By subordinating the original mortgage, the new lender gains the ability to foreclose on the property first in case of default. This agreement is especially crucial when the property has multiple mortgages, as it establishes the order in which each lender is entitled to be paid if the property is sold or foreclosed upon. 2. Subordination of Lease Agreement: In some cases, a property owner may have an existing lease agreement with a tenant while also seeking to secure a mortgage. The subordination of lease agreement is then utilized to establish the priority of the tenant's lease over the mortgage. This ensures that the tenant's rights are protected and that their lease will remain in effect even if the property is foreclosed upon or sold. Through this agreement, the tenant acknowledges the new lender's priority status but also upholds the terms of their existing lease. Keywords: subordination of mortgage and attornment agreement, Arkansas, priority, mortgages, refinancing, financing, lien, foreclosure, property, sale, subordination of lease agreement, tenant, lease, mortgage agreement, tenant's rights.
