Xxxxx and Mortgage Title Ranking Issues Sample Clauses

Xxxxx and Mortgage Title Ranking Issues. Louisiana is a strict recordation state. Both leases (which may be recorded by the recordation of a notice of the lease under La. R.S. Section 44:104) and mortgages must be recorded to bind third party purchasers of the property. The first recorded document will have priority over all subsequently recorded documents. However, parties are free to alter by contract the priority rights established by law. E.g., Calcasieu Marine National Lender of Lake Xxxxxxx x. Xxxxxxxx Investments, 556 So.2d 911 (La. App. 3rd Cir. 1990). An agreement by the tenant in which it subordinates its rights under a recorded lease to the rights of a subsequently recorded mortgage is a contract that alters these priority rights and causes the mortgage to be superior to the lease.
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