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.
Hennepin County, located in the state of Minnesota, has specific fee mortgage provisions related to ground leases. A ground lease is a legal agreement in which a property owner leases their land to another party, known as the ground tenant, who then constructs improvements on the leased land. In Hennepin County, there are different types of fee mortgage provisions applicable to ground leases, including: 1. Priority of Ground Lease: One significant provision is the priority of the ground lease over the fee mortgage. This means that the rights and interests of the ground tenant under the ground lease take precedence over the lender's rights under the fee mortgage. The ground tenant is assured that their leasehold interest will not be affected by any actions taken by the lender in case of default. 2. Notice Requirement: Another provision commonly found in Hennepin County's fee mortgage provisions is the requirement for lenders to provide written notice to the ground tenant before recording or enforcing any mortgage instrument. This ensures that the ground tenant has a chance to respond or request any necessary modifications to protect their leasehold interests. 3. Estoppel Certificate: Hennepin County's fee mortgage provisions may also include a requirement for the ground tenant to provide an estoppel certificate to the lender. This certificate confirms the current status and terms of the ground lease, ensuring that the lender has accurate information when evaluating the mortgage and determining its lending decisions. 4. Subordination Agreement: In some cases, a ground tenant may need financing or seek refinancing during the term of the ground lease. Hennepin County's fee mortgage provisions may require the ground tenant to execute a subordination agreement, which ensures the lender's mortgage will take priority over any future financing secured by the ground tenant. 5. Recognition Agreement: Hennepin County's fee mortgage provisions may also include a recognition agreement, wherein the ground tenant acknowledges the existence of the fee mortgage and agrees to certain provisions outlined by the lender. This agreement typically stipulates that the ground tenant will not take any actions that would adversely affect the fee mortgage or the lender's security interest. In summary, Hennepin County, Minnesota, has specific fee mortgage provisions that address ground leases. These provisions prioritize the ground lease over the fee mortgage, require notice to the ground tenant, involve estoppel certificates, subordination agreements, and recognition agreements. By incorporating these provisions, Hennepin County aims to protect the interests of both ground tenants and lenders in ground lease transactions.Hennepin County, located in the state of Minnesota, has specific fee mortgage provisions related to ground leases. A ground lease is a legal agreement in which a property owner leases their land to another party, known as the ground tenant, who then constructs improvements on the leased land. In Hennepin County, there are different types of fee mortgage provisions applicable to ground leases, including: 1. Priority of Ground Lease: One significant provision is the priority of the ground lease over the fee mortgage. This means that the rights and interests of the ground tenant under the ground lease take precedence over the lender's rights under the fee mortgage. The ground tenant is assured that their leasehold interest will not be affected by any actions taken by the lender in case of default. 2. Notice Requirement: Another provision commonly found in Hennepin County's fee mortgage provisions is the requirement for lenders to provide written notice to the ground tenant before recording or enforcing any mortgage instrument. This ensures that the ground tenant has a chance to respond or request any necessary modifications to protect their leasehold interests. 3. Estoppel Certificate: Hennepin County's fee mortgage provisions may also include a requirement for the ground tenant to provide an estoppel certificate to the lender. This certificate confirms the current status and terms of the ground lease, ensuring that the lender has accurate information when evaluating the mortgage and determining its lending decisions. 4. Subordination Agreement: In some cases, a ground tenant may need financing or seek refinancing during the term of the ground lease. Hennepin County's fee mortgage provisions may require the ground tenant to execute a subordination agreement, which ensures the lender's mortgage will take priority over any future financing secured by the ground tenant. 5. Recognition Agreement: Hennepin County's fee mortgage provisions may also include a recognition agreement, wherein the ground tenant acknowledges the existence of the fee mortgage and agrees to certain provisions outlined by the lender. This agreement typically stipulates that the ground tenant will not take any actions that would adversely affect the fee mortgage or the lender's security interest. In summary, Hennepin County, Minnesota, has specific fee mortgage provisions that address ground leases. These provisions prioritize the ground lease over the fee mortgage, require notice to the ground tenant, involve estoppel certificates, subordination agreements, and recognition agreements. By incorporating these provisions, Hennepin County aims to protect the interests of both ground tenants and lenders in ground lease transactions.
