This form is used when Lienholder subordinates all liens created by the (Mortgage/Deed of Trust) to the Lease and releases the leasehold estate created by the Lease from all liens created by the (Mortgage/Deed of Trust) and all extensions and renewals of the liens. Lienholder does not waive or release any of its rights under the (Mortgage/Deed of Trust) on or against any royalty interest reserved by the Lessor.
An Illinois Subordination Agreement With Release of Lien as to Leasehold Estate is a legal document that establishes the priority of mortgage or lien holders on a leasehold estate. It outlines the agreement between the holder of a primary lien and a subordinate lien holder, where the subordinate lien holder agrees to prioritize the rights of the primary lien holder. In Illinois, there are different types of Subordination Agreements with Release of Lien as to Leasehold Estate, including: 1. Commercial Lease Subordination Agreement: This type of agreement is used when a commercial property is leased, and the leasehold estate is subject to a mortgage or lien. The commercial tenant agrees to subordinate their leasehold interest to the rights of the mortgage or lien holder, ensuring that if the property is foreclosed, the mortgage or lien holder's rights will be superior to the tenant's leasehold interest. 2. Residential Lease Subordination Agreement: Similar to the commercial lease subordination agreement, this type of agreement is used in residential real estate leases. The residential tenant agrees to subordinate their leasehold interest to the rights of the mortgage or lien holder, providing the same protections as the commercial agreement. 3. Subordination Agreement with Release of Lien: This type of agreement is used when a lien (such as a mechanic's lien or judgment lien) is already in place on a leasehold estate, and a subsequent lien is created. The release of lien provision allows the subordinate lien holder to release their claim on the property once certain conditions are met, such as payment or satisfaction of the debt secured by the subordinate lien. The purpose of an Illinois Subordination Agreement with Release of Lien as to Leasehold Estate is to establish a clear priority among multiple lien holders and protect the rights of each party involved. By subordinating their interests, the subordinate lien holder is acknowledging that the rights of the primary lien holder will take precedence and that their claim is secondary. This agreement is important in real estate transactions, as it ensures that all parties involved understand the rights and priorities associated with the leasehold estate. It provides protection for both the primary and subordinate lien holders, as well as the tenant leasing the property.
