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

This legal template for a Subordination, Non-Disturbance, and Attornment Contract (SNDA) is tailored to favor the lender in the state of Pennsylvania. An SNDA is a legal agreement commonly used in real estate transactions involving a tenant, landlord, and a lender.

The purpose of this template is to outline the terms and conditions under which the tenant's leasehold interest in a property will be subordinate to the interests of the lender, while also providing the tenant with certain protections against disturbance or eviction in the event of the landlord's default or foreclosure.

The template begins by clearly defining the roles and responsibilities of the lender, tenant, and landlord. It establishes that the lender's mortgage or deed of trust on the property takes priority over the tenant's lease. Consequently, the tenant agrees to subordinate its leasehold interest to the lender's lien, meaning that the lender, in case of default or foreclosure, may terminate the lease or step into the landlord's shoes without disrupting the tenant's rights.

Furthermore, the SNDA template includes provisions to ensure non-disturbance of the tenant's rights during the term of the lease. It assures the tenant that, as long as the tenant complies with its obligations under the lease, the lender will honor the lease and not unreasonably disturb the tenant's quiet enjoyment of the premises despite any foreclosure proceedings or transfer of ownership.

The specific terms and conditions covered in this lender-friendly template may include notice requirements to the tenant in case of mortgage default, procedures for notice and cure periods, any additional obligations of the tenant resulting from the subordination, the tenant's obligation to attorn to the lender or any successor, and other pertinent details.

Given that this template is designed to favor the lender, it is essential for the tenant to review and negotiate the terms based on their specific requirements and concerns. Consulting with legal counsel is highly recommended to ensure that their interests are appropriately protected and to make any necessary modifications to the template before finalizing and executing the Subordination, Non-Disturbance, and Attornment Contract.