Ground Lease Subordination, Non-Disturbance and Attornment Contract (Lender-friendly/Ground-friendly Lessor)

This legal template is a contract that establishes the relationship between a ground lessor (property owner) and a lender in a ground lease scenario. A ground lease is an agreement where the lessee occupies and develops the property owned by the lessor for a long-term period, typically for commercial purposes.

The document focuses on three key aspects: subordination, non-disturbance, and attornment. Subordination refers to the priority of interests in case of default or foreclosure. In this agreement, the ground lessor agrees to subordinate their rights to the lender's rights, meaning that the lender's interest in the property takes precedence over the lessor's interest.

Non-disturbance guarantees that the lessee (typically a tenant) can continue their business operations undisturbed by the lessor or the lender. Both parties commit not to challenge the lease or take actions that would disrupt the tenant's occupancy or use of the property.

Attornment involves the lessee's commitment to acknowledge and recognize the lender as their new landlord in case of foreclosure or transfer of the property rights. The lessee agrees to attorn to the lender and abide by the terms and conditions of the lease, offering stability and continued tenancy.

This legal template is designed to be lender-friendly and ground-friendly, balancing the interests of both parties involved. It ensures the lender's position is protected by acquiring priority if the lessee defaults, while also providing the lessor with reassurances regarding the continued lease and the tenant's rights.

Overall, the Ground Lease Subordination, Non-Disturbance, and Attornment Contract (Lender-friendly/Ground-friendly Lessor) template outlines the subordination, non-disturbance, and attornment clauses to establish a mutually beneficial relationship between the lessor, lender, and lessee in a ground lease arrangement.