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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.
North Las Vegas Nevada Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan Related Searches
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Interesting Questions
Not necessarily. Usually, this agreement is part of the lease negotiation process, and you only need to sign it if the landlord or lender requests it whenever there's a significant change.
This agreement is like a safety net. It keeps your business secure by ensuring that your rights as a tenant are maintained, even if the ownership of the property changes.
'Attornment' is a legal term that means you'll recognize a new owner of the property as your landlord if the old one sells or loses it. Basically, you're agreeing to stick around and continue your lease with whoever owns the property next.
'Non-disturbance' is all about peace of mind. It promises that if the landlord defaults or sells the property, you can still keep your lease and won't be booted out.
'Subordination' means that the lease agreement will take a back seat to the lender's mortgage. So, if there's a conflict, the lender's rights come first.
It's a fancy way of saying that the landlord agrees that the tenant's rights to the property will stay intact even if the landlord gets a new mortgage or sells the building.
If your landlord is hesitant, it might be worth having a conversation about why it's important. This agreement protects both parties, so it's beneficial for all involved.