New York Lease Subordination Agreement
Overview of this form
A Lease Subordination Agreement is a legal document that allows a lienholder to subordinate their existing mortgage or deed of trust to a mineral, oil, or gas lease. This means that the lienholder agrees to place their claim in a lower priority position behind the lease, allowing the lessee to operate under the lease terms without the encumbrance of the existing lien. This form is crucial for property owners seeking to obtain financing while also managing mineral rights associated with their property.
Key parts of this document
- State and county information where the property is located.
- Names and roles of the parties involved, including lessor, lienholder, and lessee.
- Effective date of the subordination agreement.
- Details about the original mortgage or deed of trust, including recording information.
- Description of the lands covered by the lease.
- A statement releasing the leasehold estate from all existing liens.
Situations where this form applies
This form is used in situations where a property owner needs to secure a second mortgage or financing for property improvements without jeopardizing an existing oil and gas lease. It is essential when new financing is contingent upon the lease being recognized above the prior lienholder's claim, ensuring that operations under the lease can proceed without unnecessary delays or legal complications.
Intended users of this form
- Property owners looking to manage their mineral rights while securing additional financing.
- Lienholders who need to provide clarity on lien priorities related to oil and gas leases.
- Lessees involved in oil and gas leases requiring a subordination agreement from existing mortgage holders.
- Attorneys or legal representatives handling real estate or financing transactions involving oil and gas leases.
Steps to complete this form
- Identify the state and county where the property is located.
- List the names of all parties involved: lessor, lienholder, and lessee.
- Specify the effective date of the agreement.
- Provide details of the mortgage or deed of trust, including the recording volume and page numbers.
- Describe the property lands covered by the oil and gas lease.
- Ensure all parties review and sign where indicated.
Notarization requirements for this form
This document requires notarization to meet legal standards. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call, 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.
Mistakes to watch out for
- Failing to include all necessary party names and details.
- Not providing accurate recording information for the mortgage or deed of trust.
- Omitting the effective date of the agreement.
- Incorrectly describing the land covered by the lease.
- Assuming notarization isn't necessary; some jurisdictions may have specific requirements.
Benefits of using this form online
- Convenient access to a legal document that can be downloaded immediately.
- Edit and customize the form to meet your specific needs.
- Ensures that you have a reliable and up-to-date legal agreement.
- Simple step-by-step instructions make it easy to complete.
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FAQ
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 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 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 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.
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.
The Gross Lease. The gross lease tends to favor the tenant. The Net Lease. The net lease, however, tends to favor the landlord. The Modified Gross 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.
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.
