This office lease form is an agreement entered into in connection with a certain loan which the lender has made to the landlord and secured, in part, by a mortgage, assignment of the leases and rents and security agreement on the premises. This form describes the issues of mortgage subordination and a tenants agreement to hold the land as the tenant of a new landlord.
A Subordination of Mortgage and Attornment Agreement is a legal document commonly used in Phoenix, Arizona, when dealing with property loans and lease agreements. This agreement plays a crucial role in defining the priority of different liens or mortgages held against the property in question. It offers protection to lenders and ensures that secondary mortgages are subordinated to the primary mortgage while also addressing the tenant's rights in case of foreclosure. In Phoenix, Arizona, two common types of Subordination of Mortgage and Attornment Agreements prevail: the "Subordination Agreement" and the "Attornment Agreement." The Subordination Agreement establishes the order of priority among multiple mortgages or liens on a property. This agreement determines which mortgage has the first claim or the highest priority in repayment in case of default or foreclosure. Typically, a primary mortgage lender requires a subordination agreement when issuing a secondary mortgage to ensure their loan remains the first lien on the property. On the other hand, the Attornment Agreement focuses on the tenant's rights during a foreclosure. It requires the tenant to recognize and continue paying rent to a new owner or landlord in case the property undergoes a foreclosure. This agreement protects the buyer or the new owner by ensuring the tenant's obligation to pay rent remains intact during the transition of property ownership. Both types of agreements are essential in real estate transactions to ensure proper execution of mortgages and lease agreements. They provide clarity on lien priority and tenant obligations, reducing potential disputes and legal complications. When dealing with a Subordination of Mortgage and Attornment Agreement in Phoenix, Arizona, it is crucial to consult with legal professionals specializing in real estate law. They can guide borrowers, lenders, and tenants through the process, ensuring that all parties understand their rights and obligations under the agreement.
