This office lease form is a more detailed, more complicated subordination provision stating that subordination is conditioned on the landlord providing the tenant with a satisfactory non-disturbance agreement.
The Indiana Detailed Subordination Provision is a legal clause that outlines the specific terms and conditions regarding the priority of liens on a property. It is a crucial component of real estate transactions where multiple parties hold an interest in the property and need their claim to be prioritized correctly. By establishing the hierarchy of debts, the Detailed Subordination Provision ensures proper distribution of funds in case of a sale, foreclosure, or default. In Indiana, there are two primary types of Detailed Subordination Provisions commonly used: General subordination and Specific subordination. 1. General Subordination: This provision establishes a broad hierarchy of liens on a property, based on the recording date. It typically gives priority to earlier recorded liens over the ones recorded later. For example, if a mortgage was recorded on January 1, 2021, and another one on March 1, 2021, the January mortgage will have priority over the March mortgage. 2. Specific Subordination: This provision allows for a specific lien to be subordinated to another, regardless of the recording date. It is used when a particular party wants to waive their lien's priority and allow another lien to take precedence. For instance, a second mortgage holder may agree to subordinate their lien to a first mortgage if it benefits all parties involved. The Indiana Detailed Subordination Provision is an essential tool that protects the rights of lenders, creditors, and property owners by providing clarity and reducing risks associated with conflicting claims. It ensures transparency and fairness in resolving multiple claims on a property, facilitating smooth real estate transactions and mitigating potential disputes. In summary, the Indiana Detailed Subordination Provision establishes the priority of liens on a property, either through general or specific subordination. It plays a vital role in protecting the interests of various parties involved and ensuring a clear hierarchy of debts.
