Subordination Non-Disturbance and Attornment Agreement Law & Legal Definition
A subordination, non-disturbance, and attornment agreement (SNDA) addresses the priority of the rights of tenants and lenders. It deals with how and when the rights of tenants will be subordinate to the rights of lenders or, sometimes at lender’s option, senior to the rights of lenders. The non-disturbance portion assures tenants that their rights to their premises will be preserved (“nondisturbed”) on specified conditions within their control, even if the landlord defaults on its loan and the lender forecloses. The attornment component of the SNDA agreement provides that the tenant will continue their obligations under the contract in the event that a new landlord takes over the contract and may also specify that the lender or such purchaser will have certain specified rights thereafter. It assures a lender, generally, that the tenant will attorn to (that is, confirm privity of contract by agreeing to continue as tenant of the new landlord) the lender or a purchaser following a foreclosure. An SNDA agreement may also include other provisions for confirming or modifying further rights and obligations.
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