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.
Harris County, Texas is home to various real estate practices, including the implementation of Harris Texas Fee Mortgage Provisions from a Ground Lease. A ground lease refers to a type of lease agreement in which a tenant constructs or improves a building on a landowner's property. When it comes to ground leases in Harris County, specific provisions related to mortgages, also known as mortgage provisions, are crucial factors to consider. 1. Definition: Harris Texas Fee Mortgage Provisions from a Ground Lease involve clauses or provisions that establish the rights and restrictions on mortgage lenders and tenants within a ground lease agreement. These provisions are designed to protect the interests of all parties involved and ensure smooth mortgage transactions related to the leased property. 2. Subordination Provision: One common type of Harris Texas Fee Mortgage Provision from a Ground Lease is the Subordination Provision. This provision establishes the priority of rights between the ground lessor (landowner) and the mortgage lender. It often requires the tenant's leasehold interest to be subordinate or secondary to the mortgage held by the lender. In case of default, the mortgage lender has the right to foreclose on the property, which may affect the tenant's leasehold interest. 3. Attornment Provision: Another significant type of Harris Texas Fee Mortgage Provision is the Attornment Provision. This provision ensures that, in the event of a foreclosure, the tenant acknowledges the mortgage lender as the new landlord of the leased property. It requires the tenant to attorn (formally recognize) the lender or its designated nominee as the new lessor, sometimes upon the lender's request. This provision protects the lender's investment and provides assurance of continued lease compliance and rental payments. 4. Non-Disturbance Provision: The Non-Disturbance Provision is a valuable type of Harris Texas Fee Mortgage Provision that safeguards the tenant's rights in case of a default or foreclosure. It stipulates that if the leasehold interest is subordinated to the mortgage and the tenant fulfills lease obligations, the tenant's right to occupy the property will not be disturbed by the foreclosing lender. As a result, the tenant can continue its business operations without unnecessary disruptions. 5. Estoppel Certificate: Although not strictly a Harris Texas Fee Mortgage Provision, the Estoppel Certificate is commonly required by lenders in ground lease situations. This certificate is a formal document signed by the tenant indicating specific facts about the ground lease agreement, such as its existence, rent amounts, lease terms, and any default or breach issues. It provides crucial information to the lender for mortgage underwriting, ensuring transparency and accuracy of the lease agreement terms. In conclusion, Harris Texas Fee Mortgage Provisions from a Ground Lease play a vital role in establishing and maintaining clear guidelines for mortgage lenders and tenants. Key provisions like Subordination, Attornment, Non-Disturbance, and even the requirement of an Estoppel Certificate contribute to the smooth functioning of ground leases in Harris County, Texas. It is essential for all parties involved to understand these provisions thoroughly and consult legal professionals for advice before entering such agreements.Harris County, Texas is home to various real estate practices, including the implementation of Harris Texas Fee Mortgage Provisions from a Ground Lease. A ground lease refers to a type of lease agreement in which a tenant constructs or improves a building on a landowner's property. When it comes to ground leases in Harris County, specific provisions related to mortgages, also known as mortgage provisions, are crucial factors to consider. 1. Definition: Harris Texas Fee Mortgage Provisions from a Ground Lease involve clauses or provisions that establish the rights and restrictions on mortgage lenders and tenants within a ground lease agreement. These provisions are designed to protect the interests of all parties involved and ensure smooth mortgage transactions related to the leased property. 2. Subordination Provision: One common type of Harris Texas Fee Mortgage Provision from a Ground Lease is the Subordination Provision. This provision establishes the priority of rights between the ground lessor (landowner) and the mortgage lender. It often requires the tenant's leasehold interest to be subordinate or secondary to the mortgage held by the lender. In case of default, the mortgage lender has the right to foreclose on the property, which may affect the tenant's leasehold interest. 3. Attornment Provision: Another significant type of Harris Texas Fee Mortgage Provision is the Attornment Provision. This provision ensures that, in the event of a foreclosure, the tenant acknowledges the mortgage lender as the new landlord of the leased property. It requires the tenant to attorn (formally recognize) the lender or its designated nominee as the new lessor, sometimes upon the lender's request. This provision protects the lender's investment and provides assurance of continued lease compliance and rental payments. 4. Non-Disturbance Provision: The Non-Disturbance Provision is a valuable type of Harris Texas Fee Mortgage Provision that safeguards the tenant's rights in case of a default or foreclosure. It stipulates that if the leasehold interest is subordinated to the mortgage and the tenant fulfills lease obligations, the tenant's right to occupy the property will not be disturbed by the foreclosing lender. As a result, the tenant can continue its business operations without unnecessary disruptions. 5. Estoppel Certificate: Although not strictly a Harris Texas Fee Mortgage Provision, the Estoppel Certificate is commonly required by lenders in ground lease situations. This certificate is a formal document signed by the tenant indicating specific facts about the ground lease agreement, such as its existence, rent amounts, lease terms, and any default or breach issues. It provides crucial information to the lender for mortgage underwriting, ensuring transparency and accuracy of the lease agreement terms. In conclusion, Harris Texas Fee Mortgage Provisions from a Ground Lease play a vital role in establishing and maintaining clear guidelines for mortgage lenders and tenants. Key provisions like Subordination, Attornment, Non-Disturbance, and even the requirement of an Estoppel Certificate contribute to the smooth functioning of ground leases in Harris County, Texas. It is essential for all parties involved to understand these provisions thoroughly and consult legal professionals for advice before entering such agreements.
