Should I be concerned about this Warranty Clause in my lease.
Specifically, the part that says “subrogated to the rights of the holder” and the bottom line that states
“Lessor agrees to obtain a subordination of mortgage”
I don’t own the land and I have no lien. I pay OK taxes every yr. when I file my return and if I’m suppose to pay Stephens County property taxes , I am unaware of it.
Lessor warrants the title to the leased premises against persons who lawfully claim title to leased premises or any part thereof, by, through or under Lessor, but not otherwise, and Lessor grants Lessee the warranties of title which were made to Lessor and Lessor’s predecessors. Lessee shall have the right at any time to pay for Lessor, any mortgage, taxes or other lien on said lands, in the event of default of payment by Lessor and be subrogated to the rights of the holder thereof, and any such payments made by Lessee for Lessor may be deducted from any amounts of money which may become due Lessor under this lease. In the event the leased lands are encumbered by a mortgage, then prior to the payment of any royalties due hereunder, Lessor agrees to obtain a subordination of mortgage at Lessor’s expense in a form acceptable to Lessee.