This office lease is subject and subordinate to all ground or underlying leases and to all mortgages which may affect the lease or the real property of which demised premises are a part and to all renewals, modifications, consolidations, replacements and extensions of any such underlying leases and mortgages. This clause shall be self-operative.
The District of Columbia Subordination Provision refers to a legal clause or provision that establishes the priority of claims or liens on a property located in the District of Columbia. It determines which debts or obligations take precedence over others in the event of foreclosure, bankruptcy, or other legal proceedings. This provision is primarily used in real estate transactions and is vital for lenders, borrowers, and other parties involved. Under the District of Columbia Subordination Provision, there are several types that exist to address different scenarios: 1. Mortgage Subordination Provision: This type of provision is commonly used when there are multiple mortgages on a property. It establishes the priority of these mortgages, determining which one holds the first lien position and which ones hold subordinate positions. Lenders may agree to subordinate their lien if certain conditions are met by the borrower or if it is mutually beneficial to all parties involved. 2. Lien Subordination Provision: This provision relates to various types of liens, such as tax liens or mechanic's liens, placed on a property. It determines the order in which these liens must be satisfied if the property is sold or foreclosed upon. 3. Lease Subordination Provision: In the case of a property leased by a tenant, this provision addresses the rights and obligations of the tenant, landlord, and lender. It subordinates the tenant's lease interest to the mortgage or lien held by the lender, ensuring that the lender's interest takes precedence over the tenant's in case of default or foreclosure. 4. Subordination Agreement Provision: This provision outlines the terms and conditions agreed upon by the involved parties, such as lenders, borrowers, and other lien holders. It specifies the subordination rights and priorities of each party involved in a real estate transaction. The District of Columbia Subordination Provision, regardless of its type, aims to establish clarity and order regarding the priority of claims on a property. It enables lenders, borrowers, and other interested parties to understand their positions in terms of debt repayment and property ownership rights.
