TO ENCUMBRANCES Clause Samples
The "To Encumbrances" clause defines the extent to which a property is subject to existing encumbrances, such as easements, liens, or restrictions, at the time of transfer or sale. In practice, this clause clarifies that the buyer accepts the property with all current encumbrances, meaning they cannot later object to or seek removal of these burdens unless otherwise specified. Its core function is to allocate risk and ensure transparency by making clear which encumbrances are accepted as part of the transaction, thereby preventing future disputes over the property's title or permitted uses.
TO ENCUMBRANCES. This Lease is subject and subordinate to any mortgages or deeds of trust now on or hereafter placed against the Demised Premises and to advances made or that may be made on account of such encumbrances, to the full extent of the principal sums secured thereby and interest thereon; provided, however, that in the event of default by Landlord upon any note secured by such mortgage or trust deed, the holder thereof shall be required to notify the Tenant of the same forthwith or lose the benefit of this provision. In the event Landlord fails to make any payment on account of principal or interest on any mortgage or deed of trust note affecting the Demised Premises, Tenant shall, upon written notice to Landlord, have the right to pay the rent accruing under this Lease directly to the holder of such mortgage or deed of trust note and to deduct any sum so paid from subsequent installments of rent due hereunder.