Wednesday, May 09, 2007

Subordination, Non-Disturbance, and Attornment Agreement??

I asked what the heck the above was because it showed up on a title insurance we now (and look, he's a blogger too!)


The Subordination, Non-Disturbance and Attornment Agreement ("SNDA") is an agreement between a tenant and a landlord's lender (and sometimes the landlord itself) that typically (a) subordinates the priority of a lease to the lien of a mortgage, (b) provides that, so long as the tenant is not in default under the lease at the time of a foreclosure, the lender will not seek to terminate the lease by means of the foreclosure by naming the tenant as a party to the foreclosure, and (c) provides that, in the event of a foreclosure, the tenant will recognize (or attorn to) the lender as the new landlord under the lease (in some states a foreclosure gives a tenant the right to walk from its lease). SNDAs are seen typically in commercial transactions, particularly for larger tenants but sometimes for tenants of all shapes, forms and sizes.

If you want to know more, feel free to contact me.


David G. StejkowskiStejkowski & Zaffere LLCThe Powerhouse Building211 North Clinton StreetChicago, Illinois 60661312.373.7240 (main)312.373.7242 (direct)312.212.5557 (facsimile)

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