Posted by chet on January 25, 2005 at 12:53:13:
you need to look into the other terms of the lease It would seem that the bank or new benificary would effectively become the landlord.
Subordination - Posted by John
Posted by John on January 24, 2005 at 13:40:46:
Hello, I have a “boiler plate” clause in a lease that I have had signed by tenants in 2002. It states:
“lease shall be subordinate to all present or future mortgages”
What exactly does that clause mean - and especially it’s relavence to the property being foreclosed (in 2005) by the mortage holder - date of note and trust deed is 2000. Thanks for any help offered.
Re: Subordination - Posted by chet
Posted by chet on January 24, 2005 at 20:26:55:
I would intreprete that to mean the lease is a junior obligation to the mortgage.
So if the mortgage has an assignment of rents clause, there’s a subordinate lease whos rents can be grabbed.
Re: Subordination - Posted by John
Posted by John on January 25, 2005 at 12:08:35:
Thanks for the reply. Would the tenants have a right to sue me, the landlord, if the property was taken back by the mortgage holder and the tenants was asked to leave before the expiration of the lease?