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Easement Subordination Agreement Template for United States

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Key Requirements PROMPT example:

Easement Subordination Agreement

"Need an Easement Subordination Agreement to subordinate an existing utility easement to a new mortgage with Wells Fargo Bank, for our commercial property at 123 Main Street, closing scheduled for March 15, 2025."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

State Property Laws: Core state-specific real property laws governing easements, including recording requirements, property rights modifications, and local ordinances affecting real estate

State Contract Laws: General contract law requirements including Statute of Frauds provisions and consideration requirements specific to the state where the property is located

Recording Statutes: State and local recording requirements, including proper legal description standards and priority rules for recorded interests in property

Mortgage and Lien Laws: State-specific regulations governing lien priority, mortgage subordination requirements, and security interest regulations

Uniform Commercial Code: Federal UCC provisions that may affect security interests and priority of claims in property

Land Use Regulations: State and local land use regulations that may impact the easement's purpose and implementation

Environmental Laws: Federal and state environmental protection laws that may affect the easement area and its permitted uses

Americans with Disabilities Act: Federal ADA requirements if the easement involves public access or commercial use

Zoning Regulations: Local zoning laws and restrictions that may affect the use and implementation of the easement

Utility Regulations: Specific regulations governing utility easements if the subordination involves utility access or rights

Conservation Laws: Federal and state conservation easement laws if the easement involves protected or conservation land

Document Execution Requirements: State-specific requirements for document execution, including notarization and witness requirements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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