Maine Lease Subordination Agreement
What this document covers
A Lease Subordination Agreement is a legal document that allows a lienholder's claim on a property to be subordinated to an oil, gas, or mineral lease. This means that the lienholder agrees to place their interest behind the lease, enabling the lessee to enjoy priority access to the mineral rights specified in the lease without interference from the lien. This agreement is distinct from other forms, such as a mortgage or deed of trust, as it specifically addresses the relationship between leases and existing liens on the property.
What’s included in this form
- Effective date of the agreement
- Names of the lessor, lienholder, and lessee
- Legal description of the property involved
- Details of the original mortgage or deed of trust
- Statement of subordination and release of lien
- Signatures of the lienholder and acknowledgement information
Situations where this form applies
This form should be used when a property owner with an existing mortgage wishes to lease their property for mineral exploration, and the lienholder must agree to subordinate their lien. It is commonly needed when a property owner seeks a second mortgage or wishes to establish a new lease that could affect the priority of the existing financial obligations.
Who should use this form
This form is intended for:
- Property owners (lessors) looking to lease their land for energy extraction
- Liens holders or lenders needing to modify the priority of their loans
- Lessee (typically the oil or gas company) whose lease requires prioritization over existing claims
Steps to complete this form
- Identify the parties involved: the lessor, lienholder, and lessee.
- Specify the property by providing its legal description.
- Enter the effective date and the date the original mortgage or deed of trust was created.
- Include all necessary details regarding the lease, including its recording information.
- Ensure that the lienholder signs and acknowledges the form appropriately.
Does this document require notarization?
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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.
Avoid these common issues
- Failing to include accurate legal descriptions of the property.
- Not obtaining proper signatures or not having the document acknowledged.
- Overlooking specific state requirements that might affect the agreement.
Advantages of online completion
- Convenient access to legal forms can save time and effort.
- Editable templates allow for customization based on specific needs.
- Forms are drafted by licensed attorneys to ensure legal compliance.
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FAQ
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.
If a tenant fails to pay rent, breaks a rule, or significantly damages the property, then it is considered breach of contract and you have grounds for eviction. If there are people living in the unit that are not on the lease, then that is also breach of contract and you have grounds to evict them.
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.
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 lease is automatically void when it is against the law, such as a lease for an illegal purpose. In other circumstances, like fraud or duress, a lease can be declared void at the request of one party but not the other.
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 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.
