This office lease form is an agreement entered into in connection with a certain loan which the lender has made to the landlord and secured, in part, by a mortgage, assignment of the leases and rents and security agreement on the premises. This form describes the issues of mortgage subordination and a tenants agreement to hold the land as the tenant of a new landlord.
A New Jersey Subordination of Mortgage and Attornment Agreement is a legal document that establishes the priority of liens on a property. This agreement is typically entered into when a property owner refinances their mortgage or obtains a new loan, and there is an existing mortgage that needs to be subordinated to the new loan. In New Jersey, there are two primary types of Subordination of Mortgage and Attornment Agreements: 1. Traditional Subordination Agreement: This type of agreement is commonly used in situations where a property owner refinances their mortgage. It allows the new lender to take a first lien position, essentially becoming the primary mortgage holder, while the existing mortgage remains in place but becomes subordinate to the new loan. By signing this agreement, the existing mortgage holder agrees to step back in priority and accept a lower position among lien holders. 2. Subordination and Non-Disturbance Agreement (SODA): This type of agreement is often used in commercial real estate transactions. It includes both subordination and attornment clauses, but also provides additional protections for tenants. The SODA ensures that if the property with a leasehold interest is foreclosed upon, the tenant's rights won't be disturbed. It guarantees that the tenant will recognize the new lender as the landlord (attornment) and their lease will remain in effect, even if there is a change in ownership or default. Both types of agreements are crucial in real estate financing transactions as they establish clear rules regarding the priority of liens on a property. These agreements protect the interests of lenders, borrowers, and tenants involved in such transactions. Properly executed and recorded subordination agreements provide legal certainty and help with the smooth processing of loans and refinancing.A New Jersey Subordination of Mortgage and Attornment Agreement is a legal document that establishes the priority of liens on a property. This agreement is typically entered into when a property owner refinances their mortgage or obtains a new loan, and there is an existing mortgage that needs to be subordinated to the new loan. In New Jersey, there are two primary types of Subordination of Mortgage and Attornment Agreements: 1. Traditional Subordination Agreement: This type of agreement is commonly used in situations where a property owner refinances their mortgage. It allows the new lender to take a first lien position, essentially becoming the primary mortgage holder, while the existing mortgage remains in place but becomes subordinate to the new loan. By signing this agreement, the existing mortgage holder agrees to step back in priority and accept a lower position among lien holders. 2. Subordination and Non-Disturbance Agreement (SODA): This type of agreement is often used in commercial real estate transactions. It includes both subordination and attornment clauses, but also provides additional protections for tenants. The SODA ensures that if the property with a leasehold interest is foreclosed upon, the tenant's rights won't be disturbed. It guarantees that the tenant will recognize the new lender as the landlord (attornment) and their lease will remain in effect, even if there is a change in ownership or default. Both types of agreements are crucial in real estate financing transactions as they establish clear rules regarding the priority of liens on a property. These agreements protect the interests of lenders, borrowers, and tenants involved in such transactions. Properly executed and recorded subordination agreements provide legal certainty and help with the smooth processing of loans and refinancing.
