What Is A Landlord Lien Subordination Agreement

There are three important sections of a subordination agreement that are important to understand: signing this document means that a landlord agrees to give a lender access to the property, and priority in taking security in the event of default. This means that if you stop paying your lender, they have the right to have collateral in your rented or rented premises – before the landlord. Some owners may consider the signing of this agreement as negative, but it is really positive. When small business owners are funded by an SBA loan, their goal is financial stability and growth. This is good news for a landlord – rent payments will be easier for the small business owner to make. If your business is thriving, there may be more traffic to your store, which could attract other tenants. .