Different liens on the same property usually have priorities according to the time of their creation. To achieve the subordination of a prior lien, there must be an actual agreement to that effect.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Title: South Carolina Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien Keywords: South Carolina, agreement, subordinate lien, lien holder, lender, extending credit, property, subject to lien Introduction: In South Carolina, the Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien is a legal document that establishes the relationship and responsibilities between a lien holder and a lender regarding a property subject to a lien. This agreement allows the lender to extend credit to the property owner while ensuring that the lien holder's claim is appropriately prioritized. Types of South Carolina Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien: 1. Residential Subordination Agreement: This type of agreement is specifically tailored for residential properties subject to a lien. It outlines the terms and conditions under which the lien holder agrees to subordinate their lien, allowing the property owner to obtain additional financing or refinancing from a lender. 2. Commercial Subordination Agreement: Designed for commercial properties, this agreement serves a similar purpose as the residential version. It establishes the terms and conditions under which the commercial property lien holder agrees to subordinate their lien to facilitate credit extension by a lender. Key Elements of the Agreement: 1. Identification of Parties: The agreement should clearly identify the lien holder, lender, and property owner. It must include their legal names, addresses, and contact details. 2. Description of Property: A detailed description of the property subject to the lien, including its legal address, boundaries, and any relevant identifiers, should be included. 3. Lien Information: Both the lien holder and the lender must provide details about their respective liens. This includes information such as lien amounts, recording information, dates, and any other relevant terms associated with their claims on the property. 4. Subordination Terms: The agreement should specify the conditions and terms under which the lien holder's lien will be subordinated to the lender's lien. This may include the maximum amount of the new loan, repayment terms, consent to further encumbrances, and priority rules. 5. Consent and Confirmation: Both the lien holder and the lender must provide their consent and confirm their understanding of the agreement. Signatures of all parties involved, along with witnesses if required, should be obtained, and the agreement should be notarized to ensure legality and authenticity. 6. Governing Law and Jurisdiction: To establish clarity and avoid potential disputes, it is essential to specify that the agreement will be governed by South Carolina laws. Additionally, the jurisdiction for any legal proceedings related to the agreement should also be clearly defined. Conclusion: A South Carolina Agreement to Subordinate Lien Between Lien holder and Lender Extending Credit to Owner of Property Subject to Lien is a crucial document that allows lenders to extend credit to property owners while ensuring that the lien holder consents to subordinate their lien. Whether it's a residential or commercial property, the agreement serves to establish the terms, conditions, and obligations governing this relationship in compliance with South Carolina's legal requirements.
