Document background
The Mortgage Subordination Agreement is a critical document in New Zealand's property financing landscape, used when there are multiple security interests in a property and there is a need to modify their priority ranking. This document type is commonly required in situations such as refinancing, property development projects, or when additional security is needed for further borrowing. The agreement must comply with New Zealand's Property Law Act 2007 and Land Transfer Act 2017, and typically requires registration with the Land Registry. It sets out the terms under which a senior mortgagee agrees to subordinate their priority to another mortgagee, includes details of all security interests involved, and specifies the new priority arrangement. The document is particularly important in commercial property transactions but is also used in residential contexts where multiple lenders are involved.
