"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.
North Carolina Subordination Nondisturbance and Attorney Agreement Form is a legal document that outlines the terms and conditions for obtaining a subordination agreement between a landlord, lender, and tenant in the state of North Carolina. This agreement is often used in commercial real estate transactions, where lenders require a subordination agreement to protect their interests in case of default or foreclosure. The purpose of a Subordination Nondisturbance and Attorney Agreement (SODA) in North Carolina is to establish the rights and priorities of the parties involved, including the lender, landlord, and tenant. The agreement ensures that the lender's mortgage or security interest takes precedence over the tenant's leasehold interest, allowing the lender to step into the landlord's shoes in the event of default. The agreement typically contains various provisions: 1. Subordination: This provision establishes the priority of the lender's interest, making it superior to the tenant's leasehold interest. It ensures that in case of foreclosure or other default actions, the tenant cannot claim superior rights over the lender. 2. Nondisturbance: This provision protects the tenant's rights to occupy the leased premises, even if the property is foreclosed upon by the lender. The lender agrees not to disturb the tenant's possession and continue to recognize their leasehold rights. 3. Attornment: This provision requires the tenant to recognize and attorn to the lender or its designated successor or assignee in case of foreclosure. The tenant agrees to fulfill all of their obligations under the lease with the new landlord. 4. Attorney Agreement: This provision states that the tenant is responsible for their attorney's fees and legal costs in negotiating and preparing the SODA. It also provides the tenant with the opportunity to review the agreement with legal counsel before signing. Alternative provisions and variations of the North Carolina Subordination Nondisturbance and Attorney Agreement Form may exist depending on the specific circumstances of the real estate transaction. For instance, the agreement may include provisions related to security deposits, financial covenants, notice requirements, default remedies, and indemnification. It is important for all parties involved in a commercial real estate transaction in North Carolina to carefully review and understand the terms and provisions of the SODA before signing. Seeking legal advice from an attorney with experience in real estate law can help ensure that the agreement adequately protects the rights and interests of all parties involved.
