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North Carolina
Raleigh
Subordination...

Raleigh North Carolina Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

Category:

Loans and Lending

State:

Multi-State

City:

Raleigh

Control #:

US-1176BG

Format:

Word;

Rich Text

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Description

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.

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Interesting Questions

Is an SNDA standard in commercial real estate deals?

While not always mandatory, it's often a best practice to include an SNDA to protect all parties involved. It's like putting on a seatbelt—it's better to be safe than sorry.

What happens if there is no SNDA in my lease?

Without an SNDA, you might be left high and dry if your landlord defaults. You could lose your rights to the lease when the property gets sold or foreclosed.

Can an SNDA be negotiated?

Absolutely! Just like you can bargain for a better deal on a new car, you can also negotiate the terms of your SNDA to better fit your needs.

What is the 'non-disturbance' part of an SNDA?

The non-disturbance clause means that your business can keep running smoothly without interruption, even if the landlord faces financial trouble.

How does subordination affect my lease rights?

Subordination means your lease will be secondary to a lender's mortgage, which means if the landlord defaults, the lender can step in, but your lease remains valid.