Like Paul R. says, you need to look at state laws. However, there are some situations where leases that are recorded may have a lien position priority over a lender. Usually this is rare and I would not count on it. In most cases commercial leases have a subordination to mortgage clause that automatically places the bank in top position. This is usually necessary to get financing on a building, except for in scenerios where the tenant is the primary source of value for a property, in which case, the lender may not have too big of an issue with the tenant lease overriding foreclosure. This would usually happen where the tenant is a company of stronger value or more importance than a bank, usually big corporate lessees. Most of the time, you would just want to refer to the lease.
Oct 7, 2010