Property Management

In New Mexico, a 'subordination clause' in a lease allows the lender to:

AProhibit subleasing
BRequire the tenant's lease to be subordinate to the mortgage, meaning the lender's interest takes priority✓ Correct
CIncrease the tenant's rent
DTerminate the lease at will

Explanation

A subordination clause in a lease states that the tenant's leasehold interest is subordinate to the landlord's mortgage. If the mortgage is foreclosed, the lender's interest takes priority over the lease.

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