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.
Texas Subordination of Mortgage and Attornment Agreement: A Comprehensive Review In the world of real estate and mortgage transactions, the Texas Subordination of Mortgage and Attornment Agreement plays a significant role. This agreement outlines the relationship between parties involved in a mortgage, primarily the lender, borrower, and any secondary lien holders. By creating a hierarchical order of lien priority, this agreement clearly defines the rights and obligations of each party. Keyword: Texas Subordination of Mortgage and Attornment Agreement The primary purpose of a Texas Subordination of Mortgage and Attornment Agreement is to establish the order in which different mortgage holders will be paid in case of default or foreclosure. Generally, this agreement is entered into when a borrower wants to refinance their original mortgage or take out additional loans, while retaining the existing mortgage. By subordinating the original mortgage, the borrower agrees to place it in a lower priority position compared to the new mortgage or any other subsequent mortgages. Keyword: Lien Priority In Texas, there are several types of Subordination of Mortgage and Attornment Agreements, each serving its unique purpose: 1. First Lien Subordination Agreement: This agreement is common when a borrower wants to refinance or take out a home equity loan or line of credit without paying off their original mortgage. By subordinating the existing first mortgage lien, the lender holding the new mortgage gains priority in terms of repayment. 2. Second Lien Subordination Agreement: When a borrower seeks to obtain a second mortgage while maintaining the original first mortgage, this agreement is used. By consenting to subordination, the second lender acknowledges the primary position of the first mortgage and accepts the subordinate position. 3. Subordinate Financing Subordination Agreement: This agreement is relevant when multiple lenders have provided funds for a single property. It establishes the priority of repayment among these lenders based on their agreement. 4. Intercreditor Agreement: While not exclusively a subordination agreement, an intercreditor agreement is closely related. It sets forth the rights and obligations between two or more mortgage lenders, often addressing issues like priority of liens, consent requirements, and priority of proceeds in case of foreclosure. Keyword: Foreclosure It is critical to differentiate between subordination and attornment, as they are commonly included in the agreement. Attornment refers to the tenant's recognition of a new owner or a new landlord after the property has been foreclosed. In Texas, during a subordination agreement, tenants may be required to sign an attornment agreement stating their willingness to accept a new landlord if the property changes ownership due to foreclosure. In conclusion, a Texas Subordination of Mortgage and Attornment Agreement is a legal documentation that clearly establishes the priority of mortgage liens and creates a binding relationship between various parties involved. By understanding the different types of subordination agreements and their implications, borrowers, lenders, and secondary lien holders can effectively navigate the complexities of mortgage transactions and mitigate potential disputes.
