This form is used when Lienholder subordinates all liens created by the (Mortgage/Deed of Trust) to the Lease and releases the leasehold estate created by the Lease from all liens created by the (Mortgage/Deed of Trust) and all extensions and renewals of the liens. Lienholder does not waive or release any of its rights under the (Mortgage/Deed of Trust) on or against any royalty interest reserved by the Lessor.
A Texas Subordination Agreement with Release of Lien as to Leasehold Estate is a legal document used in real estate transactions to establish the priority of liens on a leasehold estate. This agreement allows a party holding a lien on a leasehold estate to subordinate their lien to another lien, typically a mortgage or deed of trust, while also releasing their lien on the leasehold estate. In Texas, there are different types of Subordination Agreements with Release of Lien as to Leasehold Estate, including: 1. Commercial Subordination Agreement: This type of agreement is commonly used in commercial real estate transactions where a commercial property is leased to a tenant. It allows the lien holder, such as a lender or creditor, to subordinate their lien on the leasehold estate to a mortgage or deed of trust held by another party. 2. Residential Subordination Agreement: Similar to the commercial version, this agreement is used for residential properties where a residential property is leased to a tenant. The purpose remains the same — to establish the priority of liens on the leasehold estate. 3. Subordination Agreement with Ground Lease: This specific type of subordination agreement is used when a ground lease is in place, allowing the holder of a lien on the leasehold estate to subordinate their lien to a mortgage or deed of trust on the property's underlying fee simple estate. 4. Subordination Agreement with Master Lease: When a property has multiple subleases, a master lease may be created. In such cases, a subordination agreement is used to establish the priority of liens on the leasehold estate, with the parties agreeing to subordinate their liens to the master lease. The key elements typically included in a Texas Subordination Agreement with Release of Lien as to Leasehold Estate are: 1. Parties involved: The agreement identifies the lien holder, the debtor who created the lien, and the party holding the superior lien. 2. Property description: A detailed description of the leasehold estate, including the legal description and any relevant identifying information, is provided. 3. Subordination details: The agreement clearly states that the lien holder agrees to subordinate their lien to the superior lien holder's interest in the leasehold estate. 4. Release of lien: The agreement includes provisions for the release of the lien on the leasehold estate once the lien holder's interest is subordinated. 5. Terms and conditions: The agreement may outline any specific terms and conditions agreed upon by the parties, such as the subordination period, conditions for releasing the lien, and any additional obligations. 6. Execution and effective date: The agreement is signed and dated by all parties involved, and the effective date of the subordination is specified. It is important to note that while this description provides a general overview, it is always recommended consulting with a qualified attorney to understand the specific requirements and implications of a Texas Subordination Agreement with Release of Lien as to Leasehold Estate that may apply to your circumstances.
