Just as tenants with the requisite negotiating leverage protect themselves from the potentially harsh effects of a naked subordination agreement by assuring themselves that mortgagees will (among other things) recognize and assume the landlord's obligations under the lease, mortgagees seek to avoid agreeing to assume certain obligations, particularly old repair-maintenance obligations that the landlord has neglected and that would usually become the mortgagee's obligation in the event of foreclosure.
Subordination Without Nondisturbance
It is virtually axiomatic that when a mortgagee takes possession from a defaulting borrower-landlord, the mortgagee encounters the harsh reality of a neglected piece of real estate.
By
Jeffrey H. NewmanThis premium content is locked for LawJournalNewsletters subscribers only
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