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.
North Dakota Fee Mortgage Provisions from a Ground Lease In North Dakota, the fee mortgage provisions from a ground lease are an essential aspect to consider when entering into a property transaction. A ground lease is a lease agreement where the tenant is given the right to use and develop the land owned by the landlord for a specified period. However, it is crucial to understand the fee mortgage provisions associated with such leases to protect the interests of the parties involved. The fee mortgage provision in a ground lease grants the tenant the right to mortgage their leasehold interest to secure financing for improvements or other purposes. This provision allows the tenant to use their leasehold interest as collateral for loans or mortgages, providing them with the necessary funds for property development or business expansion. Moreover, it offers lenders a level of security in case of default, as they can foreclose on the leasehold interest. One type of fee mortgage provision in North Dakota is the Absolute Assignment. This provision allows the tenant to assign their leasehold interest to the lender in case of default, allowing the lender to step into the tenant's shoes and become the new leaseholder. The lender can then continue the lease and potentially enter into a new ground lease agreement with a new tenant. Another type of fee mortgage provision is the Non-Disturbance clause. This provision ensures that if the lender forecloses on the leasehold interest, the tenant's rights under the ground lease will not be disturbed. The new landlord, typically the lender, agrees to honor the terms and conditions of the ground lease and allows the tenant to continue their operations without interruption. Additionally, the Subordination clause is another provision often found in North Dakota fee mortgage agreements from ground leases. This clause ensures that the ground lease takes a subordinate position to any mortgage or security interest granted by the tenant. In the event of foreclosure, the lender's mortgage or security interest will take priority over the ground lease, protecting the lender's investment. In conclusion, understanding the various fee mortgage provisions from a ground lease in North Dakota is crucial for both tenants and lenders. Absolute Assignments, Non-Disturbance clauses, and Subordination clauses are some significant provisions to consider. These provisions protect the interests of all parties involved and ensure a smooth transaction and continuity of operations even in the event of default or foreclosure.
