subordination, non-disturbance and attornment agreement

Subordination, Non-disturbance and Attornment Agreement (SNDA)

USA

In a leasing context, an agreement that is usually among a landlord's lender, a tenant and a landlord. Sometimes there are third parties with an interest in the real property who are also signatories to the SNDA, such as a ground lessor. A SNDA primarily sets out the understanding between the parties concerning their respective liens and their rights and obligations to each other if the lender exercises its foreclosure rights under the mortgage.

A SNDA generally includes a:

• Tenant's subordination of its lease to the mortgage.

• Tenant's recognition of the lender (or successor purchaser) as the new landlord if the landlord defaults under its mortgage and the lender exercises its remedies under the mortgage, such as a foreclosure action or deed in lieu of foreclosure.

• Lender's agreement to not terminate the tenant's lease if the lender does exercise its default remedies against the landlord.

• Landlord's acknowledgement of the terms of the agreement between the lender and the tenant.