Subordination of Real Estate Lease by pellcity27

VIEWS: 0 PAGES: 2

A subordination agreement is an agreement which makes the claim of one party inferior to a claim in favor of another. This type of agreement is a legal document by which a person who holds an otherwise senior interest agrees to subordinate that interest to a normally lesser interest.

More Info
									                           Subordination of Real Estate Lease

This Subordination Agreement is made on (date), between (Name of Lender), a
corporation organized and existing under the laws of the state of (name of state), with
its principal office located at (street address, city, state, zip code), referred to herein as
Lender, and (Name of Owner/Mortgagor), a corporation organized and existing under
the laws of the state of (name of state), with its principal office located at (street
address, city, state, zip code), referred to herein as Lessee.
For and in consideration of the mutual covenants contained in this Agreement, and
other good and valuable consideration, the parties agree as follows:
1.     Premises and Lease. The Owner/Mortgagor has entered into a Lease dated
(date), with the Lessee (the Lease), covering all or a portion of the following-described
real property (the Premises) located in (Name of County) and (Name of State), said
Premises being described in Exhibit A attached hereto and made a part hereof.

2.     Representations and Agreements. The Owner/Mortgagor has applied to the
Lender for a loan (this loan with all extensions, renewals, substitutions, and future
advances is referred to as the Debt). The Debt is or will be secured by a mortgage
covering the Premises. The Lender is willing to establish or continue the Debt on the
condition that the Lessee subordinates its interest in the Lease to the Lender.

3.    The Lessee hereby subordinates its interest in the Lease to the Lender and
agrees that any mortgage and any extension, renewal, modification, or replacement of
any mortgage made to secure the Debt is a lien prior and superior to the Lease.

4.     The Lease is in full force and effect.

5.     The term of the Lease commenced on (date), and the Lessee is in possession of
the Premises.

6.     No rent will it be paid more than (number) days in advance of its due date.

7.     The Lessee as of the date of this Subordination Agreement has no charge, lien,
or claim of offset under the Lease or otherwise against rents or other charges due under
the Lease, and no default by the Lessee or the Owner/Mortgagor exists under the
Lease.

8.     Without the prior written consent of the Lender, the Leasehold will not be
terminated or surrendered nor will the Lease be modified, except rentals may be
increased without the Lender's consent.

9.    Lessee will give the Lender notice of any default in the Lease by the
Owner/Mor
								
To top