Document background
The Landlord Lien Subordination Agreement is essential in Philippine commercial real estate transactions where tenants require financing secured by their assets located within leased premises. Under Philippine law, landlords typically have statutory and contractual liens over tenant property to secure rent payment and other lease obligations. However, lenders often require first-priority security interests in the tenant's assets to provide financing. This agreement resolves this conflict by having the landlord voluntarily subordinate their lien rights to the lender's security interest, while maintaining their secondary claim position. The document addresses crucial elements including the scope of subordination, notice requirements, and remedies, all within the context of Philippine property and security laws.
