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Lease Subordination Forms

US Legal forms lease subordination forms essentially are agreements by contract which allows subsequent mortgages on the same property to have higher claim than the current mortgage.  In these forms, a lien created by a mortgage or deed of trust is subordinated to a mineral/oil/gas lease and the leinholder releases the leasehold from all liens created by said the mortgage or deed of trust.  The lienholder retains all rights under the mortgage or deed of trust against any royalty interest reserved by the lessor under the terms of the lease, or any of lessor's reversionary interests on the termination or expiration of the lease.

Lease Subordination Agreement FAQ

What is a "lease subordination agreement"? A subordination agreement is a written agreement between holders of liens on a property that changes the priority of mortgage, judgment and other liens under certain circumstances, or in other words, allows subsequent mortgages on the same property to have higher claim than the current mortgage.

Are witness and acknowledgment requirements addressed? If a state's statutes require a witness or witnesses to the execution (signing) of the lease subordination agreement, witness blanks are provided on the form.  If the form must be signed in the presence of a Notary Public (a requirement in many states) the proper statutory acknowledgment form and/or appropriate blanks for the Notary's signature and stamp are provided.

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