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

The Subordination, Non-Disturbance, and Attornment Contract (SNDA) is a legal document template that outlines the rights and obligations of the parties involved in a real estate transaction in the state of Massachusetts, with a particular focus on protecting the interests of the lender. This contract serves as an agreement between a lender, a borrower (generally a tenant in a commercial lease), and the landlord of the property.

The template contains provisions aimed at subordinating the tenant's lease agreement to the lender's mortgage or lien on the property. This means that in the event of foreclosure or any other action taken by the lender, the lease agreement would be considered secondary to the lender's rights. This provision is crucial for lenders as it helps ensure their position is protected and that they have a first claim on the property.

Additionally, the template includes provisions relating to non-disturbance, which guarantees that in the case of any action taken by the lender, the tenant's possession and occupancy of the property will not be disturbed as long as they are fulfilling their obligations under the lease agreement. Non-disturbance clauses are beneficial for tenants, assuring their continued use and possession of the property despite any potential financial difficulties faced by the landlord or lender.

Finally, the template addresses attornment, which refers to the tenant's agreement to recognize and accept a new landlord if the property is sold or transferred. This provision ensures that in the event the property is acquired by a new owner, the tenant will continue to abide by the terms of the lease and maintain their obligations.

Overall, the Subordination, Non-Disturbance, and Attornment Contract (SNDA) template prioritizes the interests of the lender, providing them with the necessary protections to safeguard their investment in a property. At the same time, it offers certain assurances to tenants regarding the continuity of their lease and the uninterrupted use of the premises, even in the event of a change in ownership or default by the borrower.