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.
Nassau County, located in New York State, offers a variety of fee mortgage provisions from a ground lease. These provisions establish the rights and obligations of property owners and tenants when it comes to mortgage financing on leased land. Let's explore some different types of Nassau New York fee mortgage provisions from a ground lease in detail: 1. Subordination: Subordination clauses determine the priority of claims against the property. In a ground lease, this provision typically states that the ground lessor's interest in the land takes priority over the lessee's mortgage. This provision ensures that the ground lessor's rights are protected, even if the lessee defaults on their mortgage. 2. Non-Disturbance: Non-disturbance clauses are designed to safeguard the lessee's rights in case the ground lessor defaults on its mortgage or encounters financial difficulties. By signing a non-disturbance agreement, the ground lessor agrees not to disturb the lessee's possession and use of the property despite any foreclosure or default. 3. Attornment: Attornment clauses establish the lessee's obligation to recognize the ground lessor's successor as their new landlord, should the property be sold or foreclosed upon. This provision ensures continuity of the lease even under new ownership. 4. Transmit ability: Transmit ability provisions determine whether the lessee can freely transfer or assign their leasehold interest. Some ground leases might restrict the lessee's ability to transfer or mortgage their interest without the ground lessor's consent. These provisions help maintain control over the quality and stability of tenants on the leased land. 5. Covenant of Further Assurance: The covenant of further assurance requires the lessee to execute additional documents and take necessary actions to confirm and perfect their rights and the ground lessor's mortgage interest. It ensures that all relevant legal steps are taken to secure the ground lessor's interest and the lessee's leasehold rights. 6. Rent Escalation: While not directly related to fee mortgage provisions, rent escalation clauses are often included in ground leases. These provisions outline how the rent will increase over time, considering factors such as inflation or predetermined periodic increases. Rent escalation provisions play a role in determining the affordability and financial feasibility of a leasehold arrangement. In summary, Nassau New York fee mortgage provisions from a ground lease serve to define the relationship between the ground lessor, who owns the land, and the lessee, who invests in permanent structures on the leased property. These provisions ensure the rights and obligations of both parties are clearly established and protected in the event of foreclosure, default, or transfer of ownership.Nassau County, located in New York State, offers a variety of fee mortgage provisions from a ground lease. These provisions establish the rights and obligations of property owners and tenants when it comes to mortgage financing on leased land. Let's explore some different types of Nassau New York fee mortgage provisions from a ground lease in detail: 1. Subordination: Subordination clauses determine the priority of claims against the property. In a ground lease, this provision typically states that the ground lessor's interest in the land takes priority over the lessee's mortgage. This provision ensures that the ground lessor's rights are protected, even if the lessee defaults on their mortgage. 2. Non-Disturbance: Non-disturbance clauses are designed to safeguard the lessee's rights in case the ground lessor defaults on its mortgage or encounters financial difficulties. By signing a non-disturbance agreement, the ground lessor agrees not to disturb the lessee's possession and use of the property despite any foreclosure or default. 3. Attornment: Attornment clauses establish the lessee's obligation to recognize the ground lessor's successor as their new landlord, should the property be sold or foreclosed upon. This provision ensures continuity of the lease even under new ownership. 4. Transmit ability: Transmit ability provisions determine whether the lessee can freely transfer or assign their leasehold interest. Some ground leases might restrict the lessee's ability to transfer or mortgage their interest without the ground lessor's consent. These provisions help maintain control over the quality and stability of tenants on the leased land. 5. Covenant of Further Assurance: The covenant of further assurance requires the lessee to execute additional documents and take necessary actions to confirm and perfect their rights and the ground lessor's mortgage interest. It ensures that all relevant legal steps are taken to secure the ground lessor's interest and the lessee's leasehold rights. 6. Rent Escalation: While not directly related to fee mortgage provisions, rent escalation clauses are often included in ground leases. These provisions outline how the rent will increase over time, considering factors such as inflation or predetermined periodic increases. Rent escalation provisions play a role in determining the affordability and financial feasibility of a leasehold arrangement. In summary, Nassau New York fee mortgage provisions from a ground lease serve to define the relationship between the ground lessor, who owns the land, and the lessee, who invests in permanent structures on the leased property. These provisions ensure the rights and obligations of both parties are clearly established and protected in the event of foreclosure, default, or transfer of ownership.
