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

This legal template, specifically designed for lenders operating in the state of Florida, pertains to a Subordination, Non-Disturbance, and Attornment Contract (SNDA). An SNDA is a vital legal document regulating the relationship between a lender, tenant, and landlord in the case of a commercial lease.

The purpose of this template is to establish the rights and obligations of these parties and ensure a smooth transition of ownership or tenancy in situations where a property subject to a lease agreement is being foreclosed or transferred.

The template primarily focuses on protecting the lender's interests. It outlines the conditions under which the lender can assert its right to subordination, meaning that the lease and its obligations are deemed secondary to the lender's mortgage. This subordination clause is crucial for protecting the lender's ability to enforce and collect payments in the event of default or foreclosure.

Additionally, the template includes provisions related to non-disturbance, which guarantees that the lender will not disturb the tenant's occupancy rights as long as the tenant complies with the lease agreement and fulfills their obligations. This provision is particularly crucial for tenants, granting them security against potential eviction or lease termination due to foreclosure or change in ownership.

Furthermore, the template covers attornment, which refers to the tenant's recognition and acceptance of a new landlord or owner who has acquired the property through foreclosure or transfer. By signing this contract, the tenant agrees to acknowledge and adhere to the new landlord's authority and fulfill all lease obligations.

Overall, this template safeguards the interests of lenders by establishing clear rules and conditions for subordination, non-disturbance, and attornment, while providing a level of assurance and continuity for tenants in the event of a change in ownership or foreclosure of the leased property.