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The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure.
Chula Vista California Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan Related Searches
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Interesting Questions
While these agreements are meant to protect you, it’s important to read the fine print. Depending on the terms, they could impact your lease rights, so getting legal advice could be a good idea.
Refusing to sign could put your lease at risk if the property changes hands. It's often in your best interest to negotiate and ensure all parties are on the same page.
Attornment is when you agree to acknowledge a new landlord (like a lender) after the property has been sold. It assures your new landlord that you'll still uphold the lease terms.
The Non-Disturbance clause is your safety net. It ensures that even if the landlord defaults on their mortgage, you can still stay in your space without the lender kicking you out.
If you're a tenant, this agreement can safeguard your leasehold rights even if the property changes hands, ensuring you can continue your business without disruptions.
It's a legal agreement that helps to keep the peace between landlords, tenants, and lenders in a commercial lease situation. It ensures that if the property is sold or if the lender steps in, the tenant's rights are protected.
It's worth discussing with your landlord and explaining the benefits. If they still refuse, you might want to consider whether it’s worthwhile to stick with that lease.