Subordination, Non-Disturbance, and Attornment Contract (SNDA) (Lender-friendly)

The Subordination, Non-Disturbance, and Attornment Contract (SNDA) is a legal template that primarily caters to the interests of lenders involved in real estate transactions. This document establishes and defines the rights and obligations of three parties: the lender, the tenant (occupying the property subject to a mortgage or lease), and the landlord (property owner).

The subordination clause in the SNDA addresses the ranking priority of the lender's mortgage lien against any other liens or encumbrances on the property. It clarifies that the lender's mortgage takes precedence and holds a superior position to other claims if the tenant violates their lease agreement or the property owner defaults on their mortgage loan.

The non-disturbance clause protects the tenant's rights and ensures continuity of their lease despite any actions taken by the landlord's lender. If the property owner defaults on their mortgage, the lender agrees not to interfere with the tenant's occupancy or terminate their lease as long as the tenant fulfills their obligations under the lease.

Lastly, the attornment clause obligates the tenant to formally recognize and attorn to the lender as their new landlord in case of a foreclosure or transfer of ownership. This ensures that the lender, upon acquiring ownership, can enforce the terms of the lease directly with the tenant.

Ultimately, this Lender-friendly SNDA template addresses the interests of lenders seeking protection and security in real estate transactions, providing a clear framework for the rights of both tenants and lenders in the event of default or foreclosure.