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.
Minnesota Fee Mortgage Provisions from a Ground Lease: Explained In Minnesota, a fee mortgage provision from a ground lease refers to a legal agreement between a property owner, known as the fee holder, and a lessee who possesses the right to use and develop the land, commonly referred to as the ground lessee. This provision outlines the specific terms and conditions that govern the use of the land and the establishment of a mortgage on the leasehold interest. The fee mortgage provision essentially allows the ground lessee to obtain financing by granting a mortgage on their leasehold interest to the lending institution. This provision has several key elements and variations, which include: 1. Mortgage Priority: The fee mortgage provision clearly defines the priority of the mortgage on the leasehold interest compared to other liens or encumbrances that may exist on the property. It ensures that the mortgage holder's rights are protected in case of default or foreclosure. 2. Estoppel Certificate: An estoppel certificate is typically required by the lender before approving the mortgage. This certificate is signed by the fee holder and verifies various details, such as the lease terms, rental payments, and any defaults or breaches by the ground lessee, to ensure a clear understanding of the leasehold interest. 3. Leasehold Mortgagee Default Clause: This provision covers the rights and remedies available to the mortgage holder if the ground lessee defaults under the lease agreement. It outlines possible actions, such as curing defaults, terminating the lease, or exercising other remedies consistent with Minnesota statutes. 4. Attornment: Attornment refers to the agreement by the ground lessee to recognize and accept a new fee holder or mortgagee as the new landlord in the event of a transfer of ownership of the superior interest. This provision safeguards the interest of the lender in case of a fee holder transfer or foreclosure. It is important to note that the exact terms and conditions of fee mortgage provisions from a ground lease can vary based on individual agreements. Some common variations include the inclusion of rent assignment clauses, subordination agreements, and environmental indemnity provisions. In conclusion, Minnesota fee mortgage provisions from a ground lease serve to establish the rights and protections of both the fee holder and the ground lessee when a mortgage is obtained on the leasehold interest. These provisions are crucial in ensuring clarity and security for lenders, lessees, and fee holders alike.Minnesota Fee Mortgage Provisions from a Ground Lease: Explained In Minnesota, a fee mortgage provision from a ground lease refers to a legal agreement between a property owner, known as the fee holder, and a lessee who possesses the right to use and develop the land, commonly referred to as the ground lessee. This provision outlines the specific terms and conditions that govern the use of the land and the establishment of a mortgage on the leasehold interest. The fee mortgage provision essentially allows the ground lessee to obtain financing by granting a mortgage on their leasehold interest to the lending institution. This provision has several key elements and variations, which include: 1. Mortgage Priority: The fee mortgage provision clearly defines the priority of the mortgage on the leasehold interest compared to other liens or encumbrances that may exist on the property. It ensures that the mortgage holder's rights are protected in case of default or foreclosure. 2. Estoppel Certificate: An estoppel certificate is typically required by the lender before approving the mortgage. This certificate is signed by the fee holder and verifies various details, such as the lease terms, rental payments, and any defaults or breaches by the ground lessee, to ensure a clear understanding of the leasehold interest. 3. Leasehold Mortgagee Default Clause: This provision covers the rights and remedies available to the mortgage holder if the ground lessee defaults under the lease agreement. It outlines possible actions, such as curing defaults, terminating the lease, or exercising other remedies consistent with Minnesota statutes. 4. Attornment: Attornment refers to the agreement by the ground lessee to recognize and accept a new fee holder or mortgagee as the new landlord in the event of a transfer of ownership of the superior interest. This provision safeguards the interest of the lender in case of a fee holder transfer or foreclosure. It is important to note that the exact terms and conditions of fee mortgage provisions from a ground lease can vary based on individual agreements. Some common variations include the inclusion of rent assignment clauses, subordination agreements, and environmental indemnity provisions. In conclusion, Minnesota fee mortgage provisions from a ground lease serve to establish the rights and protections of both the fee holder and the ground lessee when a mortgage is obtained on the leasehold interest. These provisions are crucial in ensuring clarity and security for lenders, lessees, and fee holders alike.
