Massachusetts Lease Subordination Agreement
What is this form?
The Lease Subordination Agreement is a legal document used to establish a lienholder's agreement to subordinate their lien on a property to a mineral, oil, or gas lease. This form is essential for property owners who wish to secure additional financing while allowing for the development of mineral rights on their land. By using this agreement, lienholders relinquish their claim on the leasehold, thus facilitating a smooth transaction between involved parties.
Key components of this form
- State and County: Space to specify the jurisdiction.
- Parties Involved: Fields to enter information about the lessor, lienholder, and lessee.
- Property Description: A section for detailing the lands involved in the mortgage or deed of trust.
- Effective Date: A field that indicates when the agreement takes effect.
- Subordination Clause: Details that outline the lienholder's agreement to subordinate their existing mortgage to the new lease.
- Signature Area: Space for the lienholder's signature to validate the agreement.
When to use this form
This agreement is typically used when a property owner wants to enter into a mineral, oil, or gas lease while still maintaining an outstanding mortgage. It is needed when the lienholder must agree to subordinate their claim in favor of potential lease revenues, ensuring that the lease can be developed without conflicts regarding the existing mortgage.
Who should use this form
- Property owners looking to lease their land for mineral, oil, or gas extraction.
- Lienholders who need to update their mortgage terms to accommodate new lease agreements.
- Lessee seeking to secure rights for mineral extraction while ensuring clarity of lienholder relations.
Steps to complete this form
- Identify the parties involved: Enter the names and addresses of the lessor, lienholder, and lessee.
- Specify the property: Provide a clear description of the lands covered by the existing mortgage or deed of trust.
- Enter the effective date: Specify the date on which the subordination will take effect.
- Complete the subordination clause: Ensure the language confirms the lienholder's agreement to subordinate to the lease.
- Sign and date: The lienholder must sign the agreement for it to be legally binding.
Notarization requirements for this form
This form needs to be notarized to ensure legal validity. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call, available anytime.
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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.
Mistakes to watch out for
- Failing to accurately describe the property involved.
- Not including all necessary parties in the agreement.
- Omitting the effective date or failing to sign the form.
Why complete this form online
- Convenience: Access and download the form at any time from anywhere.
- Editability: Make necessary modifications easily before finalizing the agreement.
- Reliability: Use professionally drafted templates created by licensed attorneys.
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FAQ
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.
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. Signing your agreement is a positive step forward in your refinancing journey.
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.
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.
SNDA stands for Subordination, Non-disturbance and Attornment Agreement. You need an SNDA if you are a commercial tenant, a commercial landlord, or a lender taking a mortgage against commercial property. If you're a tenant, the SNDA protects you from being evicted if your landlord stops paying its mortgage loan.
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 lender typically wants to have an SNDA because of its subordination clause if, in the absence of such an agreement, the lease would be prior to the mortgage.Therefore, if a mortgage is senior to a lease, the foreclosure of the mortgage will terminate the lease unless there is an agreement that provides otherwise.
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.
