Practical Law Glossary Item 0-503-1058 (Approx. 3 pages)
Glossary
Landlord Lien Waiver
In the context of a financing, the waiver of a landlord's lien rights to its tenant's personal property that is located at the leased premises.
When a lender uses a borrower's non-real estate related property as collateral for a loan, including inventory, equipment, and personal property, the lender often seeks a waiver from the landlord of its right to lien the borrower's non-real estate related property located in the leased premises.
Due to the difference in landlord lien rights among various states, the requirements for landlord lien waivers change on a state-specific basis. However, landlord lien waivers generally include:
A waiver of the landlord's lien rights over its tenant's property located at the leased premises. However, sometimes landlords agree to subordinate their lien rights rather than waive them.
Access rights to the leased premises for the lender to remove or auction off (whether through public or private sale) the collateral if necessary.
Notice and cure rights for any borrower default under the lease.
The lender's permitted use and a daily rental payment for its use and occupancy of the leased premises.
The lender's restoration obligations for damage to the leased premises caused during the removal of the collateral.