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

A Subordination, Non-Disturbance, and Attornment Contract (SNDA) is a legal agreement specifically created to protect the rights and interests of a lender in the state of New Jersey. This template is designed to favor the lender and ensure they maintain their priority position in the case of any default or foreclosure of a property.

The Subordination clause establishes that the lender's rights are superior to any other claims, liens, or encumbrances on the property, ensuring they will be paid first in the event of a foreclosure or other debt repayment scenario. This provision plays a crucial role in securing the lender's position and mitigating the risks associated with loan repayment.

The Non-Disturbance clause guarantees that, in the event of any changes or transfers in property ownership or tenancy, the lender's rights and interests will not be disturbed or terminated by the new owner or tenant. This provision allows the lender to continue collecting loan payments and exercising their rights without interruption, regardless of any changes in the property's management or ownership.

The Attornment clause states that the tenant of a property subject to the loan acknowledges the lender's rights and agrees to recognize and attorn to the lender as their new landlord in the event of foreclosure or transfer of ownership. This clause ensures that the tenant remains obligated to pay rent to the lender if the property changes hands.

Overall, this Lender-friendly Subordination, Non-Disturbance, and Attornment Contract template for New Jersey provides legal protection and security for the lender's interests, establishing their priority position and preserving their rights in the face of any potential defaults, foreclosures, or changes in property ownership or tenancy.