This office lease form is a more detailed, more complicated subordination provision stating that subordination is conditioned on the landlord providing the tenant with a satisfactory non-disturbance agreement.
In the state of Texas, a Detailed Subordination Provision refers to a legal clause or provision commonly found in mortgage agreements or other financial contracts. This provision specifies the priority or order in which different claims or liens against a property will be enforced in case of default or foreclosure. It plays a crucial role in determining the rights and obligations of various parties involved in a real estate transaction. The Texas Detailed Subordination Provision is designed to protect the interests of lenders, property owners, and other stakeholders by establishing a hierarchy of debt repayments. It ensures clarity and transparency in determining which loans or liens will be paid off first during a foreclosure or sale of the property. There are different types of Detailed Subordination Provisions in Texas, depending on the nature of the transaction and the parties involved. Some common types include: 1. First Lien Subordination: This type of provision occurs when a property owner wants to take out a new loan or line of credit while an existing first mortgage is still in place. The provision ensures that the new loan will be subordinate to the existing mortgage, meaning that the original lender will retain priority in case of foreclosure or default. 2. Second Lien Subordination: In this scenario, a property owner seeks a second mortgage or loan against the property, while an original mortgage is already in place. The provision establishes the priority of the first mortgage over the second one. It states that the second lender will have a subordinate claim, meaning they will be paid only after the first mortgage is satisfied. 3. Intercreditor Subordination: This type of Detailed Subordination Provision is relevant when multiple lenders are involved in a single loan transaction. It determines the order in which these different lenders will be repaid in case of default or foreclosure. The provision ensures equitable treatment of the lenders and helps prevent disputes regarding priority of repayment. Overall, the Texas Detailed Subordination Provision is a legal tool that provides clarity and security to parties involved in real estate transactions by establishing the order in which claims or liens will be enforced. It is crucial for property owners, lenders, and other stakeholders to understand the different types of subordination provisions to ensure their rights and interests are adequately protected.
