Non Disturbance Agreement Law and Legal Definition

Non disturbance agreement refers to an agreement between a tenant and the landlord’s lender to ensure the tenant will remain in possession of the leased property, despite any foreclosure action against the landlord. For example, a tenant who thinks that s/he will be evicted in his /her landlord go bankrupt can insist on a nondisturbance clause so the lease would continue in the event of foreclosure. The non-disturbance portion assures tenants that their rights to the premises will be preserved (“nondisturbed”) on specified conditions within their control, even if the landlord defaults on its loan and the lender forecloses.

Non disturbance agreement can also refer to an agreement in a sales contract, where the seller retains mineral rights, that provides that exploration of minerals will not interfere with surface development.