Document background
The Real Estate Subordination Agreement is a crucial document in Hong Kong's real estate financing landscape, particularly when multiple lenders have security interests in the same property. It becomes necessary when a new lender requires priority over existing security interests, or when existing lenders agree to reorganize their priority rankings. The agreement must comply with Hong Kong's property and security laws, including the Conveyancing and Property Ordinance and Land Registration Ordinance. It typically contains detailed information about the property, existing security interests, the agreed subordination arrangement, and provisions for registration and stamp duty. This document is commonly used in property development projects, refinancing arrangements, and complex real estate transactions where multiple funding sources are involved.
