Lease Subordination, Non-Disturbance and Attornment Agreement
What is this form?
The Lease Subordination, Non-Disturbance and Attornment Agreement is a legal document that outlines the relationship and agreements between a landlord, tenant, and lender. This form ensures that the lenderâs mortgage lien on the property takes priority over the tenant's leasehold rights. In exchange for subordinating their lease, the tenant secures the continued right to occupy the premises under the original lease terms, even in the event of foreclosure or sale of the property. This agreement is crucial for tenants to understand their rights in relation to the lender's security interests.
Main sections of this form
- Identification of all parties involved: landlord, tenant, and lender.
- Details regarding the mortgage loan and property description.
- Clause that outlines the subordination of the lease to the mortgage.
- Provisions for tenant's rights in case of foreclosure.
- Attornment clause, ensuring tenant recognizes the lender's successors.
Common use cases
This form should be used when a landlord is seeking a mortgage loan that will impact the existing lease agreement with a tenant. It is essential in maintaining the tenant's right to occupy the property, even if the lender forecloses on the mortgage. This agreement is particularly relevant for commercial leases or long-term residential leases where a lender requires priority over the leasehold interest.
Who needs this form
- Tenants who wish to protect their occupancy rights in the event of a foreclosure.
- Landlords seeking financing while maintaining existing lease agreements.
- Lenders requiring assurance of their mortgage lien over tenant leases.
Completing this form step by step
- Identify and enter the names and addresses of all parties: landlord, tenant, and lender.
- Specify the loan term and details of the mortgage agreement.
- Include a legal description of the property in the designated section.
- Clearly state the date of the original lease agreement.
- Ensure all parties sign and date the agreement in the designated areas.
Notarization guidance
This form does not typically require notarization unless specified by local law. It is advisable to check state regulations for any additional requirements to ensure the form's enforceability.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to provide accurate property descriptions.
- Not obtaining signatures from all necessary parties.
- Neglecting to review local state regulations regarding subordination.
- Missing the deadline for tenant attornment upon foreclosure.
Advantages of online completion
- Convenience of downloading and filling out the form at your own pace.
- Editability ensures you can tailor the agreement to your specific needs.
- Access to reliable templates drafted by licensed attorneys.
- Secure storage of your signed document for future reference.
Legal use & context:
- This agreement creates a legal relationship between the landlord, tenant, and lender.
- It protects the tenant's rights in the event of foreclosure, ensuring lease continuity.
- The subordination and attornment clauses are central to the mortgage lender's interests.
Main things to remember
- The Lease Subordination, Non-Disturbance and Attornment Agreement is essential for clarifying the rights of all parties involved.
- Utilizing this form helps protect tenant occupancy rights during a lenderâs foreclosure.
- Accurate completion and understanding of the form's parts are crucial for legal validity.
