This Lease Subordination Agreement is a lienholder's lien that was created by a (Mortgage/Deed of Trust) and is subordinated to a mineral/oil/gas lease and lienholder releases, said Leasehold from all liens created by said (Mortgage/Deed of Trust), and all extensions and renewals of such liens. Lienholder retains all rights under the (Mortgage/Deed of Trust) against any royalty interest reserved by the lessor in and payable under the terms of the lease, or any of lessor's reversionary interests on the termination or expiration of the lease.
Subordination means an agreement to put a debt or claim which has priority in a lower position behind another debt, particularly a new loan. A property owner with a loan secured by the property who applies for a second mortgage to make additions or repairs usually must get a subordination of the original loan so the new loan has first priority. A declaration of homestead must always be subordinated to a loan.
A King Washington Lease Subordination Agreement is a legal document that establishes the order of priority between a lease agreement and another financial instrument or lien in the state of Washington, specifically related to real estate transactions. The agreement outlines the terms and conditions under which the leasehold interest of one party will be subordinated to the interests of another party. This agreement is often used in situations where the property owner wishes to obtain financing or place a lien on their property, while ensuring that the lease agreement remains in effect. By signing a Lease Subordination Agreement, the tenant agrees to subordinate their leasehold interest to the interests of the lender or lien holder. The purpose of the agreement is to protect the lender or lien holder's interest in establishing their priority over the leasehold interest. In case of default or foreclosure, the lender or lien holder will have the right to terminate the lease and take possession of the property. There can be different types of King Washington Lease Subordination Agreements based on the specific circumstances of the transaction. Some commonly encountered types include: 1. Commercial Lease Subordination Agreement: This type of agreement is used when the property in question is leased for commercial purposes, such as office spaces, retail stores, or industrial buildings. 2. Residential Lease Subordination Agreement: This agreement is applied when the property is utilized for residential purposes, typically for leasing apartments, condominiums, or houses. 3. Subordination, Non-Disturbance, and Attornment (SODA) Agreement: This comprehensive agreement combines the subordination of the lease agreement with provisions for non-disturbance and attornment. It ensures that the tenant's rights are protected if the property is foreclosed upon or sold. 4. Lease Subordination to Mortgage Agreement: This agreement is specific to situations where the property owner wishes to obtain a mortgage loan while ensuring that the lease agreement remains valid during the mortgage term. Overall, a King Washington Lease Subordination Agreement is a critical legal document that assures the lender or lien holder their priority over the leasehold interest, offering protection in case of default or foreclosure.
