The Easement Subordination Agreement is utilized when there's a need to alter the priority of property interests, typically when a property owner seeks new financing or refinancing. This document is crucial in U.S. real estate transactions where lenders require their security interest to have priority over existing easements. The agreement specifies the terms under which an existing easement holder agrees to subordinate their rights to another party's interest, usually a lender's mortgage. It must comply with state property laws and recording requirements, and typically includes detailed property descriptions, terms of subordination, and all parties' obligations.
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1. Parties: Identification of all parties involved, including property owner, easement holder, and lender
2. Background: Description of existing easement and reason for subordination
3. Definitions: Key terms used in the agreement including Property, Existing Easement, Subordinated Interest
4. Property Description: Legal description of affected property and easement area
5. Subordination Terms: Specific terms of subordination and new priority arrangement
6. Representations and Warranties: Statements of fact and guarantees by parties regarding authority, ownership, and existing encumbrances
7. Execution: Signature blocks and notary acknowledgments
1. Consideration: Details of any payment or consideration for subordination, used when monetary or other consideration is being provided
2. Insurance Requirements: Specific insurance obligations required by any party, included when insurance coverage must be maintained
3. Environmental Provisions: Environmental responsibilities and obligations, included when easement involves environmental concerns or restrictions
1. Schedule A - Property Description: Detailed legal description of the property including metes and bounds or lot/block description
2. Schedule B - Original Easement: Copy of the original easement agreement being subordinated
3. Schedule C - Survey/Plot Plan: Survey or plot plan showing location and dimensions of the easement
4. Schedule D - Lender's Deed of Trust: Copy of relevant mortgage or deed of trust document to which the easement is being subordinated
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