This office lease form states that the lessor represents to the lessee that the existing fee mortgage is the only mortgage encumbering the land and the demised premises. The lessor agrees to cause the holder of the existing fee mortgage to agree to certain provisions.
District of Columbia Fee Mortgage Provisions from a Ground Lease refer to specific clauses and regulations governing the mortgage conditions associated with properties located within the District of Columbia and leased through a ground lease arrangement. Ground lease refers to a lease agreement in which a tenant leases only the land on which a property is built, while the improvements are owned by the ground lessor. In the District of Columbia, there are various types of fee mortgage provisions from a ground lease. These provisions outline the rights and obligations of both the lender and the borrower when a property subject to a ground lease is mortgaged. Some types of fee mortgage provisions commonly found in the district include: 1. Subordination: This provision determines the priority of the ground lease and mortgage. It establishes whether the ground lease takes precedence over the mortgage or if the mortgage holds seniority. The subordination clause can have a significant impact on the rights of the lender and the borrower in case of default or foreclosure. 2. Attornment: The attornment provision requires the tenant to recognize and acknowledge the lender as the new owner of the ground lease property in case of foreclosure or assignment of mortgage. This provision ensures that the tenant's lease remains in effect even after a change in ownership. 3. Security Interest: This provision grants the lender a security interest in the ground lease and any improvements on the property. It allows the lender to seize and sell the property if the borrower defaults on the mortgage payments. 4. Notice Requirements: District of Columbia Fee Mortgage Provisions from a Ground Lease may include provisions specifying the notice requirements that apply to the lender and the borrower. These provisions ensure that both parties are adequately notified regarding any actions, defaults, or proposed changes related to the ground lease or mortgage. 5. Assignment and Transfer: This provision outlines the conditions under which the ground lease and associated mortgage can be assigned or transferred to another party. It may require the lender's consent or outline specific steps to be taken for a lawful transfer. 6. Default and Remedies: This provision details the consequences of default by the borrower and the possible remedies available to the lender. Remedies may include acceleration of the mortgage, foreclosure, or other legal actions to recover the outstanding debt. Understanding the District of Columbia Fee Mortgage Provisions from a Ground Lease is crucial for lenders, borrowers, and tenants, as it helps determine their respective rights and responsibilities within the context of a ground lease property. Compliance with these provisions is essential to ensure legal security in mortgage transactions within the District of Columbia.
