This office lease form states that the lessor represents to the lessee that the existing fee mortgage is the only mortgage encumbering the land and the demised premises. The lessor agrees to cause the holder of the existing fee mortgage to agree to certain provisions.
Contra Costa California Fee Mortgage Provisions from a Ground Lease In Contra Costa County, California, fee mortgage provisions from a ground lease play a significant role in real estate transactions. A ground lease is a lease agreement where the tenant has the right to use and develop the land owned by the landlord while retaining the title to the improvements made on the property. The fee mortgage provision within a ground lease provides lenders with security interest in both the land and any improvements on it. Keywords: Contra Costa County, California, fee mortgage provisions, ground lease, real estate transactions, tenant, landlord, improvements, property. There are several types of fee mortgage provisions from a ground lease that can be found in Contra Costa California: 1. Standard Mortgage Provision: This provision ensures that the lender's interest is protected, and they have first priority over any claims on the property. It outlines the rights and responsibilities of the lender and borrower within the ground lease agreement. 2. Non-Disturbance Clause: This provision guarantees that in the event of a default or foreclosure, the lender will not disturb the tenant's possession and rights under the ground lease. It offers protection to the tenant, allowing them to continue operating without interruption. 3. Subordination Agreement: In some cases, a fee mortgage provision may require the tenant to subordinate their ground lease interest to the lender's mortgage. This agreement ensures that the lender's interests take precedence over the tenant's rights in cases of foreclosure or default. 4. Assignment and Consent Provision: This provision outlines the conditions under which the tenant can assign or transfer their leasehold interest. It may require the lender's consent or approval, ensuring that the borrower does not undermine the security interest of the lender. 5. Estoppel Certificate: An estoppel certificate is often required by lenders during the financing process. It confirms the current status of the ground lease, including the tenant's rights, rental amounts, and any defaults or disputes. This certificate provides assurance to the lender regarding the terms of the ground lease. 6. Leasehold Mortgage: The leasehold mortgage is another type of fee mortgage provision that allows the tenant to secure financing using their leasehold interest as collateral. This provision enables tenants to access capital based on the value of their leasehold estate. By incorporating these fee mortgage provisions from a ground lease, lenders, landlords, and tenants in Contra Costa County, California can establish clear guidelines and protect their respective interests in real estate transactions. It is essential for all parties involved to carefully consider and negotiate these provisions to ensure a smooth and secure transaction.
