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.
The South Dakota Subordination of Mortgage and Attornment Agreement is a legal document that establishes the priority of multiple mortgages on a property and requires the tenant to recognize and attorn to a new lender if the property is sold or foreclosed upon. This agreement is commonly used in real estate transactions involving refinancing, subordinate financing, or when a tenant lease exists on the property. A Subordination of Mortgage and Attornment Agreement is usually employed when a property owner wants to obtain a new mortgage or loan against their property, but there is already an existing mortgage in place. By signing this agreement, the current mortgage holder agrees to subordinate their lien position to the new lender. This ensures that the new lender takes priority over the existing lender if the property goes into foreclosure. In South Dakota, there are different types of Subordination of Mortgage and Attornment Agreements that can be used based on the specific circumstances of the transaction. Some common variations include: 1. Commercial Subordination of Mortgage and Attornment Agreement: This type of agreement is used when the property in question is a commercial property, such as an office building, retail space, or industrial facility. It outlines the terms and conditions under which the existing mortgage holder agrees to subordinate their mortgage and the tenant's obligations to the new lender. 2. Residential Subordination of Mortgage and Attornment Agreement: This agreement is utilized in residential real estate transactions when there is an existing mortgage on the property and the owner wants to secure a secondary loan. It protects the interest of the subsequent mortgage lender by ensuring their priority over the existing lender. 3. Subordination of Mortgage and Attornment Agreement with Tenant: In cases where a property is subject to a lease or rental agreement, this specific agreement is used. It requires the tenant to acknowledge and agree to recognize the new lender or mortgage holder, even if there is a change in ownership or foreclosure. This ensures that the tenant continues to make rental payments to the new entity. It is essential to consult with a knowledgeable real estate attorney or legal professional when drafting or executing a Subordination of Mortgage and Attornment Agreement in South Dakota. This ensures that all legal requirements are met and that the agreement adequately protects the interests of all parties involved.
