Different liens on the same property usually have priorities according to the time of their creation. To achieve the subordination of a prior lien, there must be an actual agreement to that effect.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
A Georgia Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien is a legal document that outlines the terms and conditions when a lien holder agrees to subordinate its lien to a lender who is extending credit to the owner of the property. In Georgia, there may be various types of agreements related to subordinating liens, such as: 1. Georgia Agreement to Subordinate Mortgage Lien: This type of agreement is specific to mortgages and outlines the terms when a mortgage lien holder agrees to subordinate their lien to a lender who is extending credit to the property owner. 2. Georgia Agreement to Subordinate Construction Lien: Construction liens are commonly used in the construction industry, and this type of agreement would involve a construction lien holder agreeing to subordinate their lien to a lender who is providing credit to the property owner for construction purposes. 3. Georgia Agreement to Subordinate Judgment Lien: A judgment lien is typically obtained by a creditor through a court judgment. In this type of agreement, the judgment lien holder agrees to subordinate their lien to a lender who is providing credit to the property owner. Regardless of the specific type, a Georgia Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien generally includes the following key elements: 1. Parties Involved: The agreement identifies and provides the contact information of the lien holder, lender, and property owner. 2. Property Description: A detailed description of the property subject to the lien is provided, including its address, legal description, and any relevant identification numbers. 3. Lien Information: The agreement outlines the details of the existing lien, including the lien holder's name, the amount of the lien, and the date it was recorded. 4. Credit Extension Details: The agreement specifies the terms and conditions of the credit being extended by the lender to the property owner, including the amount, interest rate, repayment terms, and any other relevant provisions. 5. Subordination Clause: The main purpose of this agreement is to establish the lien holder's agreement to subordinate their lien to the lender. The subordination clause outlines the lien holder's consent, acknowledging that the lender's lien will have priority over theirs. 6. Lien Priority: The agreement clarifies the new priority position of the lien holder's lien after the subordination, detailing how it will be subordinate and ranking it against other liens, if any. 7. Legal Compliance: The agreement ensures that all parties comply with relevant laws and regulations governing subordination in Georgia. 8. Signatures and Notarization: The document requires the signatures of all parties involved, including a notary acknowledgment to validate its authenticity. It is important to note that while this content outline provides a general understanding of what a Georgia Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien may include, it is always recommended consulting with a qualified attorney who can provide personalized advice and drafting assistance based on your specific circumstances.
