Document background
The Lease Subordination Agreement is a critical document in Philippine real estate transactions where property owners seek financing while having existing tenants. This agreement becomes necessary when a property owner wants to obtain a mortgage or refinancing on a property that already has lease agreements in place. The document establishes the relative priorities of the lease and mortgage, ensuring the lender's security interest takes precedence over the tenant's leasehold rights. Typically used in commercial real estate transactions, the agreement often includes provisions for non-disturbance and attornment to protect tenants' interests. Under Philippine law, these agreements must comply with the Civil Code, Property Registration Decree, and relevant real estate regulations. The document helps facilitate property financing while maintaining stable landlord-tenant relationships and protecting the interests of all parties involved.
