Kentucky Lease Subordination Agreement
About this form
The Lease Subordination Agreement is a legal document that alters the priority of liens on a property. It allows a mineral, oil, or gas lease to take precedence over an existing mortgage or deed of trust. This is essential when a property owner wishes to ensure that a new lease is unaffected by prior debts. Unlike other lease agreements, this form specifically addresses the subordination of a lienholder's rights to support the interests of a lessee, thus protecting the leasehold from future claims related to existing mortgages.
Form components explained
- Identification of parties: Lessor, Lienholder, and Lessee are clearly defined.
- Property description: Specifies the lands covered by the mortgage or deed of trust.
- Effective date: Establishes when the agreement becomes valid.
- Subordination clause: Details how the mortgage is subordinated to the lease.
- Rights retention: Clarifies which rights remain with the lienholder despite the subordination.
When to use this form
This form is needed when a property owner secures a mortgage for a loan and subsequently intends to enter into a mineral, oil, or gas lease. It is crucial to obtain this agreement before finalizing the lease to ensure that the interests of the lessee are protected and that the new lease takes precedence over the existing mortgage. Use this form if you are negotiating a lease that needs to coexist with a mortgage or if you are a lienholder agreeing to subordinate your rights for lease purposes.
Intended users of this form
- Property owners (Lessors) looking to lease their mineral, oil, or gas rights.
- Lienholders seeking to agree to subordination of their mortgage or deed of trust for lease agreements.
- Lessee who will benefit from leasehold rights above existing debts.
How to complete this form
- Identify the parties: Fill in the names of the Lessor, Lienholder, and Lessee.
- Specify the property: Provide a detailed description of the lands covered by the mortgage or deed of trust.
- Enter relevant dates: Include the effective date and the date of the original mortgage or deed of trust.
- Complete the subordination clause: Sign off on the subordination of liens as per the agreement.
- Ensure the document is signed: All parties must sign the form to validate the agreement.
Does this form need to be notarized?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Not including all parties involved in the agreement.
- Failing to provide a complete and accurate property description.
- Leaving the effective date blank or incorrect.
- Not signing the document or acquiring all necessary signatures.
Benefits of completing this form online
- Convenience: Access and complete the form from anywhere at any time.
- Editability: Easily modify the document to fit specific circumstances.
- Reliability: Use forms drafted by licensed attorneys, ensuring legal validity.
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FAQ
A Subordination and Non-Disturbance Agreement (SNDA) commonly called a non-disturb is an agreement that your landlord asks its lender to provide. The agreement basically says that if the building goes bankrupt and the lender takes control of the building from the landlord, the lender will honor your lease.
A ground lease is an agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner.
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Subordination clauses in mortgages refer to the portion of your agreement with the mortgage company that says their lien takes precedence over any other liens you may have on your property.However, it's also possible to have other liens. You might have some placed by contractors until work is paid off.
A subordination agreement often comes up when a home has a first and a second mortgage, and the borrower wants to refinance the first mortgage. If you have two mortgages on your home and refinance the first loan, the refinancing lender might require a subordination agreement.
A rental agreement will be void and unenforceable if it allows the landlord to terminate the tenancy of a tenant for a crime committed in relation to the rental property if it does not also include the new domestic abuse protection language set forth in sec. 704.
Despite its technical-sounding name, the subordination agreement has one simple purpose. It assigns your new mortgage to first lien position, making it possible to refinance with a home equity loan or line of credit.
Subordination is the tenant's agreement that its interest under the lease will be subordinate to that of the lender.Attornment is the tenant's agreement to become the tenant of someone other than the original landlord and who has now taken title to the property.
