A residential ground rent shall constitute a lien against the real estate from the time it is recorded, in a like manner as would a deed of trust or mortgage. Any deed of trust or mortgage on the interest of the obligor in the real estate may provide that a default in payment of ground rent shall constitute a material default in such deed of trust or mortgage; that the trustee or beneficiary thereunder may satisfy such obligation for rent, and that the money so advanced, with interest thereon, shall be a part of the debt secured, to be repaid as provided by law, and such trustee or beneficiary shall be subrogated to the rights of the obligee in the real estate to the extent of such advancement and interest.
Terms Used In Tennessee Code 66-30-104
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Obligee: means any person or entity to whom a residential ground rent is owed, including its successors and assigns. See Tennessee Code 66-30-102
- Obligor: means one (1) or more individuals who are obligated to pay a residential ground rent, including their successors, sublessees or assigns. See Tennessee Code 66-30-102
- Residential ground rent: means a rent or charge paid for the use of land, whether or not title thereto is transferred to the user, or a lease of land, for residential purposes:
(A) Which is assignable by the obligor without the obligee's consent. See Tennessee Code 66-30-102
- Trustee: A person or institution holding and administering property in trust.