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Real Estate Subordination Agreement
"I need a Real Estate Subordination Agreement for a commercial property in Zurich, where a second mortgage of CHF 2 million needs to be subordinated to a new senior loan of CHF 5 million, with completion targeted for March 2025."
1. Parties: Identification of all parties including the senior creditor, subordinated creditor, and property owner
2. Background: Context of the agreement including details of existing securities and reason for subordination
3. Definitions: Definitions of key terms used throughout the agreement, including property, securities, and relevant dates
4. Property Details: Specific description of the real estate property subject to the agreement, including land registry details
5. Existing Securities: Description of all existing mortgages, liens, and other securities affecting the property
6. Subordination Terms: Specific terms of the subordination, including ranking of securities and extent of subordination
7. Representations and Warranties: Statements of fact and guarantees by the parties regarding their authority and the status of their securities
8. Registration and Notices: Requirements for registration with the Land Registry and notification obligations
9. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction for disputes
10. Execution: Formal execution requirements and signature blocks
1. Multiple Properties Clause: Required when the subordination agreement covers multiple properties
2. Inter-creditor Provisions: Needed when there are multiple creditors requiring specific arrangements between them
3. Conditional Subordination: Used when the subordination is subject to specific conditions or triggers
4. Duration and Termination: Required when the subordination is temporary or subject to specific termination events
5. Currency Provisions: Needed when dealing with securities in different currencies
6. Assignment and Transfer: Required when parties need specific rights to assign or transfer their interests
7. Further Assurance: Optional clause requiring parties to take additional actions to give effect to the agreement
1. Property Description Schedule: Detailed legal description of the property including land registry excerpts
2. Existing Securities Schedule: Details of all existing mortgages, liens and their registration numbers
3. Form of Notice: Template for any required notices to the Land Registry or other parties
4. Powers of Attorney: If applicable, copies of powers of attorney for signing parties
5. Lender Consents: Copies of any required consents from existing lenders
6. Property Plans: Official property plans and surveys if relevant
7. Land Registry Forms: Required forms for registration of the subordination
Authors
Banking & Finance
Real Estate
Commercial Property
Residential Property
Property Development
Construction
Legal Services
Investment Management
Property Management
Legal
Real Estate
Credit Risk
Compliance
Property Management
Investment Management
Transaction Management
Securities Administration
Corporate Finance
Real Estate Lawyer
Banking Lawyer
Property Manager
Real Estate Finance Manager
Mortgage Officer
Credit Risk Manager
Real Estate Investment Manager
Legal Counsel
Compliance Officer
Property Developer
Real Estate Transaction Manager
Senior Loan Officer
Real Estate Portfolio Manager
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