Lease Subordination Agreement - Oregon 2026

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The document is a Subordination Agreement in which the Lienholder agrees to subordinate their mortgage or deed of trust liens to an Oil and Gas Lease granted by the Lessor to the Lessee. It releases the leasehold estate from all liens created by the mortgage while maintaining the Lienholder's rights to any royalty interests and reversionary interests in the mineral estate. The agreement is effective as of a specified date.
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  1. Click ‘Get Form’ to open the Lease Subordination Agreement in the editor.
  2. Begin by filling in the 'State' and 'County' fields at the top of the document. This information is crucial for identifying the jurisdiction of your agreement.
  3. Next, enter the names of the Lessor, Lienholder, and Lessee in their respective fields. Ensure that these names are accurate as they represent all parties involved.
  4. Specify the 'Effective Date' of the agreement. This date marks when the terms of this subordination take effect.
  5. In the section regarding the Mortgage/Deed of Trust, provide a detailed description of the lands covered, including any relevant recording information such as volume and page numbers.
  6. Complete details about the Oil and Gas Lease granted to Lessee, including its recording information. This ensures clarity on what is being subordinated.
  7. Finally, review all entries for accuracy before signing. Use our platform’s features to save or share your completed document easily.

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A subordination agreement must be signed and acknowledged by a notary and recorded in the official records of the county to be enforceable.
Example of a Subordination Agreement A standard subordination agreement covers property owners that take a second mortgage against a property. One loan becomes the subordinated debt, and the other becomes (or remains) the senior debt. Senior debt has higher claim priority than junior debt.
Who Executes a Subordination Agreement? Typically, the new lender will prepare the subordination agreement, working with the subordinating lienholder. In some cases, both parties will sign the agreement but in others, only the subordinating lender will need to sign.
A subordination agreement is a legal document that establishes one debt as ranking behind another in priority for collecting repayment from a debtor. The priority of debts can become extremely important when a debtor defaults on their payments or declares bankruptcy.
Examples of subordinate clauses joined with independent clauses: Even though I am scared of flying, I am taking a plane to Spain. Since I am graduating next month, I need to start looking for a job. Whereas my sisters favorite subject is math, I prefer English. Because I did not study, I failed the test. Style Matters:

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People also ask

A mortgage subordination refers to the order the outstanding liens on your property get repaid if you stop making your mortgage payments. For example, your first home loan (primary mortgage) is repaid first, with any remaining funds paying off additional liens, including second mortgages, HELOCs and home equity loans.

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