Tennessee Lease Subordination Agreement
About this form
The 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 relinquishes their priority claim over the property in favor of the lease, ensuring that the lease is valid and enforceable. Subordination often occurs when a property owner wants to secure a new loan while maintaining the existing lease's validity, making this agreement essential for property transactions involving mineral rights.
Main sections of this form
- Identification of the parties involved: Lessor, Lessee, and Lienholder.
- Effective date of the agreement.
- Details regarding the property and the existing mortgage or deed of trust.
- Terms stating that the lienholder releases all liens on the leasehold estate.
- Clauses confirming the lienholder retains rights to any royalty interests reserved by the lessor.
When to use this document
This form is used when a property owner, having an existing loan secured by a property, wishes to enter into an oil, gas, or mineral lease. The lienholder must agree to subordinate their mortgage or deed of trust to ensure that the lease takes priority. This often occurs in situations where the property owner needs additional financing for improvements or repairs while maintaining the rights to the lease.
Who needs this form
- Property owners leasing mineral, oil, or gas rights.
- Lienholders who hold a mortgage or deed of trust on the property.
- Lessees wanting to ensure their lease remains valid against existing liens.
Instructions for completing this form
- Identify the parties involved: Lessor, Lessee, and Lienholder.
- Specify the property details, including legal descriptions and recording information.
- Enter the effective date of the agreement.
- Include information about the existing mortgage or deed of trust.
- Ensure all parties sign and date the document where indicated.
Notarization guidance
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, 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 accurately describe the property being leased.
- Neglecting to include the effective date of the agreement.
- Not obtaining all necessary signatures from involved parties.
Benefits of completing this form online
- Convenient access to legal forms from any location.
- Editable templates that can be customized to fit specific needs.
- Reliable guidance from licensed attorneys in the form creation process.
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FAQ
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.
Name the parties. A simple rental agreement form needs to name the parties signing the lease and where they live. Describe the premises. Define the term of the lease. Set how much rent is owed. Assign a security deposit amount. Finalize the lease.
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.
: placement in a lower class, rank, or position : the act or process of subordinating someone or something or the state of being subordinated As a prescriptive text, moreover, the Bible has been interpreted as justifying the subordination of women to men.
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.
The signed agreement must be acknowledged by a notary and recorded in the official records of the county to be enforceable.
