"Subordination Nondisturbance and Attorney Agreement Form and Alternative Provisions" is a American Lawyer Media form. This form is for subordination nondisturbance and attorney agreement form and alternative provisions.
Louisiana Subordination Nondisturbance and Attorney Agreement Form (SODA) is a legal document used in real estate transactions to establish the relationship between a tenant and a landlord's lender. It outlines the rights and obligations of the parties involved and ensures the tenant's leasehold interest is protected even in the event of foreclosure. The Louisiana SODA typically includes the following provisions: 1. Subordination: This provision states that the tenant agrees to subordinate its leasehold interest to the lender's security interest. By doing so, the lender gains priority in the event of a foreclosure, meaning that the tenant's lease could potentially be terminated. 2. Nondisturbance: The nondisturbance provision ensures that if the lender forecloses on the property, the tenant's rights will not be disturbed. The tenant will be allowed to continue occupying the premises and fulfill the terms of the lease agreement without interruption, as long as the tenant is not in default. 3. Attornment: The attornment provision requires the tenant to recognize and attorn to the lender or the lender's designated party as the new landlord in the event of foreclosure. This provision ensures that the tenant acknowledges the new landlord's authority and agrees to fulfill its lease obligations to the new landlord. Alternative provisions may include: 1. Estoppel Certificate: This provision requires the tenant to confirm the accuracy of the lease terms and affirm that there are no defaults or unpaid rents. It's often requested by the lender to ensure they have accurate and up-to-date information. 2. SODA for Subleases: In cases where the tenant is subleasing the premises to another party, a separate SODA may be required. This document would outline the subtenant's rights and obligations in relation to the lender. 3. Assignment Provision: This provision establishes the conditions under which the tenant may assign the lease to another party. It may outline the lender's consent requirements and any potential limitations on assignment. 4. Notice and Cure Period: This provision establishes the process for providing notice to the tenant in case of default and provides a specified time frame for the tenant to rectify the default before further action can be taken. In summary, the Louisiana Subordination Nondisturbance and Attorney Agreement Form (SODA) is a crucial legal tool to protect a tenant's leasehold interest in a property subject to foreclosure. It outlines the subordination of the lease to the lender, ensures the tenant's rights are not disturbed in case of foreclosure, and requires the tenant to recognize and attorn to the new landlord. Additional provisions may be included to address specific circumstances and provide clarity on assignment, notice, and cure periods.
