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.
New Jersey Fee Mortgage Provisions from a Ground Lease: Explained In New Jersey, fee mortgage provisions from a ground lease refer to specific clauses and terms that govern the rights and obligations of parties involved in a mortgage agreement on a property subject to a ground lease. This type of arrangement typically occurs when a ground lessee wishes to secure financing by placing a mortgage on the leased property. Here are some essential aspects and provisions related to New Jersey fee mortgage provisions from a ground lease, along with relevant keywords: 1. Ground Lease: A ground lease is a long-term agreement between the landowner (lessor) and the tenant (lessee) where the lessee leases the land, typically for an extended period, to develop and use buildings or other structures on the property. 2. Lessor's Consent: The ground lease may require the lessee to obtain the lessor's consent before placing a mortgage on the leased property. This provision ensures that the lessor is aware of and agrees to the encumbrance created by the mortgage. 3. Subordination and Attornment: Subordination clauses specify the priority of the mortgage in relation to the ground lease. In most cases, the lender will require the lease to be subordinate to the mortgage, making the mortgage the primary lien on the property. Attornment refers to the lessee's agreement to recognize the mortgagee as the new landlord should the lessor default. 4. Non-Disturbance Agreement: A non-disturbance agreement ensures that if the lessor defaults on its obligations, the mortgagee's rights will be protected, and it assures the mortgagee that their leasehold interest will not be disturbed. 5. Mortgagee's Right to Cure: This provision grants the mortgagee the right to cure any defaults under the ground lease that may adversely affect the mortgagee's interest, allowing them to preserve their rights and avoid foreclosure. 6. Estoppel Certificates: Estoppel certificates are often required by the mortgagee as part of the due diligence process. They confirm the existence, duration, and status of the ground lease, as well as any breaches or defaults by the lessor or lessee. 7. Different Types of Fee Mortgage Provisions: While specific variations may exist, common types of New Jersey fee mortgage provisions from a ground lease include subordination agreements, non-disturbance agreements, attornment agreements, and estoppel certificates. By incorporating these New Jersey fee mortgage provisions into a ground lease, all parties involved can ensure their interests are protected, maintain clarity in the lending process, and mitigate potential conflicts between the ground lessor, lessee, and mortgagee.New Jersey Fee Mortgage Provisions from a Ground Lease: Explained In New Jersey, fee mortgage provisions from a ground lease refer to specific clauses and terms that govern the rights and obligations of parties involved in a mortgage agreement on a property subject to a ground lease. This type of arrangement typically occurs when a ground lessee wishes to secure financing by placing a mortgage on the leased property. Here are some essential aspects and provisions related to New Jersey fee mortgage provisions from a ground lease, along with relevant keywords: 1. Ground Lease: A ground lease is a long-term agreement between the landowner (lessor) and the tenant (lessee) where the lessee leases the land, typically for an extended period, to develop and use buildings or other structures on the property. 2. Lessor's Consent: The ground lease may require the lessee to obtain the lessor's consent before placing a mortgage on the leased property. This provision ensures that the lessor is aware of and agrees to the encumbrance created by the mortgage. 3. Subordination and Attornment: Subordination clauses specify the priority of the mortgage in relation to the ground lease. In most cases, the lender will require the lease to be subordinate to the mortgage, making the mortgage the primary lien on the property. Attornment refers to the lessee's agreement to recognize the mortgagee as the new landlord should the lessor default. 4. Non-Disturbance Agreement: A non-disturbance agreement ensures that if the lessor defaults on its obligations, the mortgagee's rights will be protected, and it assures the mortgagee that their leasehold interest will not be disturbed. 5. Mortgagee's Right to Cure: This provision grants the mortgagee the right to cure any defaults under the ground lease that may adversely affect the mortgagee's interest, allowing them to preserve their rights and avoid foreclosure. 6. Estoppel Certificates: Estoppel certificates are often required by the mortgagee as part of the due diligence process. They confirm the existence, duration, and status of the ground lease, as well as any breaches or defaults by the lessor or lessee. 7. Different Types of Fee Mortgage Provisions: While specific variations may exist, common types of New Jersey fee mortgage provisions from a ground lease include subordination agreements, non-disturbance agreements, attornment agreements, and estoppel certificates. By incorporating these New Jersey fee mortgage provisions into a ground lease, all parties involved can ensure their interests are protected, maintain clarity in the lending process, and mitigate potential conflicts between the ground lessor, lessee, and mortgagee.
