Utah Lease Subordination Agreement
Overview of this form
The Lease Subordination Agreement is a legal document that establishes the priority of a mineral, oil, or gas lease over an existing mortgage or deed of trust. This form ensures that the lienholder releases all claims against the leasehold estate, allowing the lease to take priority over the lien from the mortgage or deed of trust. Essentially, it clarifies the order of claims and helps in situations where a property owner needs additional financing against a property already secured by an existing loan.
Key parts of this document
- Details of the lessor, lienholder, and lessee involved in the agreement.
- Description of the property associated with the mortgage or deed of trust.
- Effective date of the agreement and specific clauses regarding the release of liens.
- Terms stating that the lease takes precedence over existing mortgages or liens.
- Acknowledgment of rights retained by the lienholder under the mortgage or deed of trust.
When to use this form
This form is typically used when a property owner wishes to secure a new loan against their property that is already subject to an existing mortgage. It is particularly important in situations involving oil, gas, or mineral leases when the landowner needs to ensure that this lease remains operational and in priority order over prior liens. Utilizing this form allows for clarity in financial transactions and protects the interests of all parties involved.
Who this form is for
- Property owners who have existing mortgages and want to lease their property for mineral or gas extraction.
- Lienholders who need to clarify their position in relation to newly created lease agreements.
- Tenants leasing property for oil, gas, or mineral rights who want assurance regarding lien priorities.
- Attorneys representing property owners, lienholders, or lessees in real estate transactions.
Steps to complete this form
- Identify all parties involved: the lessor (property owner), the lienholder (mortgage lender), and the lessee (tenant).
- Specify the property by including a detailed description of the lands covered by the mortgage or deed of trust.
- Enter the effective date of the agreement, ensuring that all parties agree to this date.
- Complete the sections related to the mortgage or deed of trust, including recording information like volume and page numbers.
- Have the lienholder sign the agreement, indicating their consent to subordinate their lien as described.
Does this form need to be notarized?
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.
Common mistakes
- Failing to accurately describe the property involved in the lease.
- Not including all necessary parties and their correct legal names.
- Overlooking the effective date, which can cause issues with enforcement.
- Neglecting to record the agreement in the appropriate local records.
Why complete this form online
- Easy accessibility allows users to download and fill out the form at their convenience.
- Editable templates enable customization to suit individual circumstances.
- Reliable legal language drafted by licensed attorneys ensures that the form meets legal requirements.
- Immediate availability can expedite transactions related to property leasing and financing.
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FAQ
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 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 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.
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.
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.
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
Like an ordinary lease, under a ground lease a tenant or lessee pays rent to a landlord or lessor and receives in return a right to possession and use of the property for the time period covered by the rent.During the ground lease term, the tenant will typically own and depreciate the improvements.
