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Non-Disturbance Agreement Real Estate

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For example, a non-disruption clause is often included in a subordination, non-disturbance and attornment agreement (SNDA). The subordination clause would assign a tenant to an inheritance right to be subordinated to the mortgage interest of a lender. This would allow the owner to seek financing with the property as collateral, after the tenant has signed agreements for the occupation of the area. The attornence clause is a guarantee that the tenant will recognize the new owner of the property as the owner and will continue to pay him rents for the duration of the rental if the property changes ownership. The non-disruption agreement refers to an agreement between a tenant and the lessor`s lender to ensure that the tenant remains in possession of the leased property despite a enforcement action against the lessor.

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