Automatic Subordination Clause in a Commercial Lease (NY) | Practical Law

Automatic Subordination Clause in a Commercial Lease (NY) | Practical Law

An automatic subordination clause for use in a commercial lease. While the Standard Clauses are taken from a New York form of lease, they can be used in all jurisdictions. These clauses provide for the tenant's automatic subordination to the landlord's current and future mortgage liens, ground lease, or both and further provide for attornment, estoppel certificates, and a waiver of development rights. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for both landlords and tenants.

Automatic Subordination Clause in a Commercial Lease (NY)

Practical Law Standard Clauses 4-506-8530 (Approx. 11 pages)

Automatic Subordination Clause in a Commercial Lease (NY)

by James I. Hisiger, Latham & Watkins LLP, with Practical Law Real Estate
MaintainedNew York
An automatic subordination clause for use in a commercial lease. While the Standard Clauses are taken from a New York form of lease, they can be used in all jurisdictions. These clauses provide for the tenant's automatic subordination to the landlord's current and future mortgage liens, ground lease, or both and further provide for attornment, estoppel certificates, and a waiver of development rights. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for both landlords and tenants.