Contracts
What is a 'subordination clause' in a Rhode Island real estate lease?
AA clause that subordinates the landlord's interest to the tenant's
BA clause providing that the lease is subordinate to existing or future mortgages on the property✓ Correct
CA clause reducing rent if the property value falls
DA clause subordinating tenant improvements to the landlord's control
Explanation
A subordination clause in a lease makes the tenant's leasehold interest subordinate to the landlord's mortgage. This means if the landlord is foreclosed upon, the lender's rights take priority over the tenant's lease rights.
Related Rhode Island Contracts Questions
- In Rhode Island, what is a 'backup offer'?
- When a seller counters a buyer's offer, the original offer is:
- In Rhode Island, what is a 'counteroffer' in the context of a real estate transaction?
- In Rhode Island, earnest money held by a real estate broker must be deposited into:
- Which of the following best describes an 'as-is' clause in a purchase contract?
- Under Rhode Island law, mutual mistake in a real estate contract refers to:
- What is 'mutual assent' in a Rhode Island real estate contract?
- What is a 'force majeure' clause in a Rhode Island real estate contract?
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →