Mississippi Lease Subordination Agreement
What this document covers
The Lease Subordination Agreement is a legal document that defines the relationship between a lienholder and a lessor regarding a property that is subject to both a mortgage or deed of trust and a mineral, oil, or gas lease. This agreement effectively subordinates the lienholder's claim under the mortgage or deed to the lease, allowing the lease to take priority. This form is essential for ensuring that the rights under the lease remain intact despite existing financial obligations to the lienholder.
Key parts of this document
- Identification of parties: Lessor, Lienholder, and Lessee.
- Description of the property: Specific details and legal description of the land covered.
- Effective date: The date when the agreement becomes enforceable.
- Release of lien: A clause confirming that the leasehold is released from all liens created by the mortgage or deed of trust.
- Retention of rights: Clarifies that lienholder maintains rights to any royalty interests.
When to use this document
This form is typically used when a lessor (landowner) needs to lease their mineral, oil, or gas rights while having an existing mortgage or deed of trust on the property. It is essential for situations where the lessor wishes to avoid potential conflicts between the lease and the lienholder's rights, ensuring that the lease remains effective despite the existing lien.
Who needs this form
- Property owners (lessors) seeking to lease mineral, oil, or gas rights.
- Lienholders (usually banks or financial institutions) that want to ensure their rights are properly subordinated to the lease.
- Lessee (individual or company leasing the mineral rights) who needs assurance of the lease's validity.
Instructions for completing this form
- Identify the parties involved: Fill in the names of the lessor, lienholder, and lessee.
- Specify the property: Enter a detailed description of the lands covered by the mortgage and lease.
- Enter dates and signatures: Complete the effective date and ensure all parties sign the agreement.
- Record the agreement: Follow any local procedures for recording the agreement with the county clerk or appropriate office.
Notarization requirements for this form
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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 accurately describe the property in the document.
- Not obtaining all necessary signatures before execution.
- Ignoring state-specific laws that might require particular wording or additional clauses.
Advantages of online completion
- Convenience: Access and fill out the form from anywhere at any time.
- Editability: Easily make changes to the form as needed without starting over.
- Reliability: Utilize templates drafted by licensed attorneys, ensuring legal compliance.
Quick recap
- The Lease Subordination Agreement is critical for clearly defining the rights of the lienholder in relation to a mineral, oil, or gas lease.
- It ensures that a lease retains priority over existing liens, protecting the interests of the lessee.
- Properly completing and potentially recording the agreement is vital for its enforceability.
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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.
In the case of commercial property changing hands, an attornment clause in a subordination, non-disturbance, and attornment (SNDA) agreement requires the tenant to acknowledge a new owner as their landlord and to continue paying rent regardless of whether the property changes hands through a normal sale or a
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.
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.
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.
A nondisturbance clause is a provision in a mortgage contract that ensures that a rental agreement between the tenant and the landlord will continue under any circumstances.A nondisturbance clause ensures that a tenant will not be evicted in the event that the landlord goes bankrupt.
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.
The subordination, non-disturbance and attornment agreement (commonly abbreviated as an SNDA agreement) is the document that the landlord, tenant and lender often employ to resolve how their rights do and will intersect.
