Lease definition

To be forced into second place.

Internal Headline

Know your place. Know your rights.

Why it’s in the lease

Always lender required of the landlord so they just pass it on.

Risks to the tenant

Check to make sure the subordination triggers are reasonable. Triggers warn the tenant that the landlord has financial problems and may be foreclosed on by a lender.

What it means to the tenant

Subordination is a reminder that a tenant is just that and does not own the real estate.

Points of negotiation

For a major tenant, subordination language can be modified to provide reasonable notice of a pending delinquency or foreclosure situation.

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