Oklahoma Lease Subordination Agreement
About this form
A Lease Subordination Agreement is a legal document that establishes the priority of a lienholderâs interest over an existing mineral, oil, or gas lease. This agreement subordinates the lien created by a mortgage or deed of trust to the lease, allowing the new lease to take priority. It differs from other agreements by specifically addressing the relationship between the lease and the lienholder's claims against the property, ensuring clarity in any potential conflicts of interest.
Form components explained
- State and county details to specify the jurisdiction.
- Identifying information for the lessor, lienholder, and lessee.
- A description of the property covered by the mortgage or deed of trust.
- Effective date for the agreement.
- Terms under which the lienholder subordinates rights to the lease.
- Signature line for the lienholder's acknowledgment of the agreement.
When this form is needed
This Lease Subordination Agreement is typically used when a property owner wants to secure a new oil, gas, or mineral lease but needs to ensure that this lease has priority over existing loans secured by the property. It's an essential document when refinancing or taking out additional loans that might conflict with existing interests in the property.
Who should use this form
- Property owners who are leasing oil, gas, or mineral rights.
- Lienholders looking to establish priority in relation to existing loans.
- Lessees who want to ensure their lease is prioritized over other claims.
- Attorneys or legal representatives managing lease agreements.
Instructions for completing this form
- Identify the state and county where the property is located.
- Fill in the names of the lessor, lienholder, and lessee.
- Describe the property covered by the mortgage or deed of trust in detail.
- Enter the effective date for when the agreement takes effect.
- Ensure all parties acknowledge and sign where indicated.
Does this document require notarization?
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
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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 complete property descriptions.
- Not entering the effective date correctly.
- Omitting signatures from the lienholder or other involved parties.
- Neglecting to check local law requirements for subordination agreements.
Advantages of online completion
- Convenience of downloading and using a template tailored for legal use.
- Editability allows you to customize the form to meet specific needs.
- Access to professionally drafted language by licensed attorneys.
- Quick turnaround for obtaining necessary documentation.
Legal use & context
- A Lease Subordination Agreement is typically enforceable in a court of law, provided that it has been properly completed and executed.
- The terms of the agreement must comply with state laws governing property and lien issues.
- Ensure all parties understand the implications of subordination, as it may affect future claims against the property.
Key takeaways
- A Lease Subordination Agreement defines the priority of liens between a mortgage and a mineral lease.
- It's essential for property owners involved in leasing oil or gas rights, particularly when existing loans are in place.
- Completing this form requires careful attention to detail, including property descriptions and dates.
- Consult local laws to ensure compliance and validity.
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FAQ
A subordination agreement acknowledges that one party's claim or interest is superior to that of another party in the event that the borrower's assets must be liquidated to repay the debts.
A subordination fee is a fee directly related to the credit transaction. There is no comparable cash transaction to compare it to and a subordination is not a required document to perfect your lien. It's only required to perfect your lien in the position that you required as a condition of making the loan.
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.
Unless there is a subordination agreement, it is virtually impossible to refinance your first mortgage. The document agreeing to the subordination must be signed by the lender and the borrower and requires notarization.
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.
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.
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.
But as property values are going up and the demand for refinance isn't as much, it seems that the subordination process has gotten a little easier. Typically, it takes two to three weeks to get the resubordination paperwork through, and it is likely to set you back $200 to $300.
Subordination agreements are prepared by your lender. The process occurs internally if you only have one lender. When your mortgage and home equity line or loan have different lenders, both financial institutions work together to draft the necessary paperwork.
