"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.
South Dakota Subordination Nondisturbance and Attorney Agreement Form, also known as SN DAA, is a legal document that protects the rights and interests of parties involved in a real estate transaction, specifically in the context of financing and leasing. This form is often used when a property owner seeks to obtain a loan or refinancing, and the lender requires assurance that their mortgage lien will have priority over any future leases. The South Dakota SN DAA outlines the responsibilities and obligations of the tenant (lessee), the lender, and the landlord (lessor) in the event of a default or foreclosure. It ensures that the tenant's rights to occupy the leased space and the agreement between the tenant and the landlord will not be disturbed by the actions of the lender. The form typically includes important provisions that cover various scenarios, such as: 1. Subordination: This provision establishes the lender's priority lien position, ensuring that in case of default, the lender's mortgage lien takes precedence over any lease or future lease entered into by the landlord and tenant. 2. Nondisturbance: This provision protects the tenant's right to occupy the leased space even if the landlord defaults on their mortgage obligation or the property undergoes foreclosure. It guarantees that the tenant will not face eviction or disturbances by the lender. 3. Attornment: This provision obligates the tenant to recognize and attorn to the lender or any party that acquires the property through foreclosure or other legal means. It ensures that the tenant will continue to perform their lease obligations and maintain a relationship with the new property owner. Alternative provisions may also be included in the South Dakota SN DAA, depending on the specific requirements of the parties involved. These provisions might address additional rights and obligations, such as notice requirements for lease modifications and conditions for lender cure periods. Each agreement is tailored to the unique circumstances of the transaction, and therefore, the specific provisions may vary. Other types of South Dakota SN DAA include variations based on specific property types, such as commercial, residential, or industrial properties. These forms adapt to the different legal requirements and considerations associated with each property category. In conclusion, the South Dakota Subordination Nondisturbance and Attorney Agreement Form is a crucial legal document that safeguards the interests of tenants, landlords, and lenders in real estate transactions. Its provisions ensure that the tenant's occupancy rights are protected, even in the event of default or foreclosure, while also giving the lender the necessary assurance of priority lien position.
