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Commercial Lease – Subordination and Non-Disturbance Agreements

A subordination, non-disturbance, and attornment agreement, commonly known as a “SNDA” is an agreement that addresses lien priorities as between tenants and lenders. These SNDA set out when the rights of the tenant will be subordinate (junior) to the rights of the lenders. The overall purpose of a SNDA agreement is to assure a tenant that their rights in their lease and the leased premises will not be disturbed even if the landlord defaults on its loan and the commercial lender forecloses on the property. The attornment agreement, in turn, typically provides that the tenant will continue their obligations under the lease even in the event a new landlord takes over the contract. This assures the lender that there will be privity of contract following

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Posted in Lien Priority, Non-Disturbance, Real Estate Attorney Los Angeles, Subordination

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