Property Management

What is a subordination clause in a commercial lease?

AA clause making the tenant subordinate to the landlord
BA clause where the tenant agrees their leasehold interest is subordinate to any mortgage on the property✓ Correct
CA clause reducing rent for long-term tenants
DA clause requiring tenant permission for property sale

Explanation

A subordination clause in a commercial lease makes the tenant's leasehold interest subordinate to the landlord's mortgage. This is typically paired with a non-disturbance provision (SNDA) ensuring the tenant will not be disturbed if the lender forecloses.

Related Ohio Property Management Questions

Practice More Ohio Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Ohio Quiz →