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

This legal template, the Subordination, Non-Disturbance, and Attornment Contract (SNDA) (Lender-friendly) (New York), is a legally binding agreement designed to protect the interests of a lender in a real estate or lease transaction.

The SNDA template specifically addresses the relationships between the lender, the landlord, and the tenant. By signing this contract, the tenant acknowledges that their leasehold interests are subordinate to the rights of the lender. This means that in the event of default or foreclosure, the lender's rights will take precedence over the tenant's rights.

Additionally, the contract ensures non-disturbance for the tenant. It guarantees that as long as the tenant fulfills their lease obligations, they will not be evicted or disturbed during the foreclosure process. This provision provides the tenant with some security and stability, even in the face of a potential change in ownership or financial distress of the landlord.

Moreover, the SNDA contract includes an attornment clause. This means that in the event of foreclosure, the tenant agrees to recognize the lender as their new landlord and to continue paying rent to the lender or any new owner. This clause facilitates a smooth transition of the lease agreement from the original landlord to the lender or subsequent purchaser, ensuring continuity of the tenancy.

The template is customized for the state of New York, meaning that it aligns with the specific legal requirements and provisions of the state. It serves as a legally binding document that protects the lender's interests, provides security for the tenant, and ensures the orderly transfer of lease agreements in the event of default or foreclosure.