This Lease Subordination Agreement is a lienholder's lien that was created by a (Mortgage/Deed of Trust) and is subordinated to a mineral/oil/gas lease and lienholder releases, said Leasehold from all liens created by said (Mortgage/Deed of Trust), and all extensions and renewals of such liens. Lienholder retains all rights under the (Mortgage/Deed of Trust) against any royalty interest reserved by the lessor in and payable under the terms of the lease, or any of lessor's reversionary interests on the termination or expiration of the lease.
Subordination means an agreement to put a debt or claim which has priority in a lower position behind another debt, particularly a new loan. A property owner with a loan secured by the property who applies for a second mortgage to make additions or repairs usually must get a subordination of the original loan so the new loan has first priority. A declaration of homestead must always be subordinated to a loan.
A Lease Subordination Agreement is a legal document specific to the San Antonio, Texas area that regulates the order of priority between a lease agreement and a mortgage or other encumbrances on a property. It outlines the terms under which a tenant agrees to subordinate its leasehold interest to the interests of the lender or the owner of the property. In San Antonio, Texas, there are different types of Lease Subordination Agreements that may be used depending on the specific circumstances: 1. Commercial Lease Subordination Agreement: This type of agreement is commonly used in commercial real estate transactions where a tenant wishes to lease a property that is subject to an existing mortgage or other liens. The tenant agrees to subordinate its lease to the mortgage or lien, meaning that in the event of foreclosure or default, the tenant's leasehold interest will be considered inferior to the interests of the lender. 2. Residential Lease Subordination Agreement: This agreement is utilized in residential real estate situations, where a tenant is leasing a property that has an existing mortgage or encumbrances. It establishes the subordination of the tenant's lease to the priority rights of the lender or other encumbrance holders. In both types of agreements, certain keywords and clauses are commonly addressed: a. Subordination Clause: This clause states that the lease agreement is subordinate to the interests of the lender or the owner of the property. It ensures that the tenant's rights are subject to those of the mortgage or liens. b. Non-Disturbance Clause: This clause guarantees the tenant that, in the event of foreclosure or default, their lease rights will be recognized and protected by the new owner or the lender's successors. c. Attornment Clause: This clause obligates the tenant to recognize and attorn to the new owner or lender, thereby ensuring that the lease agreement remains valid even after a change in ownership. d. Estoppel Certificate: This is a statement issued by the tenant confirming the terms and conditions of their lease, as well as acknowledging any existing agreements between the landlord and lender. It serves as evidence to lenders or potential buyers of the property. e. Notice Provisions: The agreement may specify the manner in which notices should be given to all parties involved, ensuring effective communication throughout the term of the lease. A San Antonio Texas Lease Subordination Agreement offers clarity and protection for both tenants and lenders by establishing a clear order of priorities. It is crucial for all parties involved to carefully review the agreement and seek legal advice if necessary to ensure their rights and obligations are properly addressed and protected.A Lease Subordination Agreement is a legal document specific to the San Antonio, Texas area that regulates the order of priority between a lease agreement and a mortgage or other encumbrances on a property. It outlines the terms under which a tenant agrees to subordinate its leasehold interest to the interests of the lender or the owner of the property. In San Antonio, Texas, there are different types of Lease Subordination Agreements that may be used depending on the specific circumstances: 1. Commercial Lease Subordination Agreement: This type of agreement is commonly used in commercial real estate transactions where a tenant wishes to lease a property that is subject to an existing mortgage or other liens. The tenant agrees to subordinate its lease to the mortgage or lien, meaning that in the event of foreclosure or default, the tenant's leasehold interest will be considered inferior to the interests of the lender. 2. Residential Lease Subordination Agreement: This agreement is utilized in residential real estate situations, where a tenant is leasing a property that has an existing mortgage or encumbrances. It establishes the subordination of the tenant's lease to the priority rights of the lender or other encumbrance holders. In both types of agreements, certain keywords and clauses are commonly addressed: a. Subordination Clause: This clause states that the lease agreement is subordinate to the interests of the lender or the owner of the property. It ensures that the tenant's rights are subject to those of the mortgage or liens. b. Non-Disturbance Clause: This clause guarantees the tenant that, in the event of foreclosure or default, their lease rights will be recognized and protected by the new owner or the lender's successors. c. Attornment Clause: This clause obligates the tenant to recognize and attorn to the new owner or lender, thereby ensuring that the lease agreement remains valid even after a change in ownership. d. Estoppel Certificate: This is a statement issued by the tenant confirming the terms and conditions of their lease, as well as acknowledging any existing agreements between the landlord and lender. It serves as evidence to lenders or potential buyers of the property. e. Notice Provisions: The agreement may specify the manner in which notices should be given to all parties involved, ensuring effective communication throughout the term of the lease. A San Antonio Texas Lease Subordination Agreement offers clarity and protection for both tenants and lenders by establishing a clear order of priorities. It is crucial for all parties involved to carefully review the agreement and seek legal advice if necessary to ensure their rights and obligations are properly addressed and protected.
