What This Subordination Non-Disturbance Agreement Template Covers

The subordination non-disturbance agreement template is designed to clarify the relationship between landlords, tenants, and lenders in commercial real estate transactions. This template includes essential clauses such as the Subordination Clause, which establishes the priority of the lease over the mortgage, ensuring that tenants' rights are preserved even if the property is sold. The Non-Disturbance Clause protects tenants from eviction due to foreclosure, while the Attornment Clause confirms the tenant's obligation to recognize the new owner of the property following a sale.

When to Use a Non-Disturbance Agreement

This subordination non-disturbance agreement template is ideal for landlords and tenants entering into commercial lease agreements. It is particularly useful when a landlord seeks financing secured by the property, as it helps protect tenants' rights. Additionally, lenders may require such agreements to ensure that lease agreements remain valid and enforceable despite changes in property ownership. This agreement is also crucial for tenants who want to safeguard their occupancy rights in the event of a foreclosure.

What's Included in This Commercial Real Estate Template

• Parties: Identification of the landlord, tenant, and lender involved in the agreement.
• Subordination Clause: Details the order of priority between the lease and the mortgage.
• Non-Disturbance Clause: Ensures that tenants can continue their tenancy without disturbance from the lender after foreclosure.
• Attornment Clause: Requires tenants to acknowledge and accept the new property owner, ensuring continuity of the lease.
• General Provisions: Covers miscellaneous terms and conditions that apply to the agreement.

Key Provisions in This Subordination Agreement

• Landlord Tenant Subordination Clause: This clause is critical as it establishes the hierarchy of interests between the landlord and lender, ensuring that tenants are not adversely affected by the lender's actions.
• Non-Disturbance Protection: This provision is essential for tenants who want peace of mind knowing they will not be evicted if the property is sold or foreclosed.
• Attornment Agreement: Important for maintaining the relationship between tenants and new property owners, ensuring that the lease terms remain intact.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.