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

This legal template, also known as a Subordination, Non-Disturbance, and Attornment Contract (SNDA) (Tenant-friendly), is a contractual agreement between a tenant and a landlord or lender. This agreement addresses the specific terms and conditions that govern the relationship between these parties in situations where the property leased by the tenant is subject to a mortgage or other financing arrangements.

The template primarily focuses on protecting the rights and interests of the tenant, ensuring that their occupancy and use of the property are not disrupted in the event of default or foreclosure by the landlord's lender. It aims to provide the tenant with clarity and security in terms of their ongoing rights to occupy and enjoy the leased premises.

The subordination aspect of the contract acknowledges that the tenant's leasehold interest is lower in priority to the lender's interest or mortgage. It outlines the tenant's obligations to accept this subordinate position. By signing this contract, the tenant agrees to allow the lender's interest in the property to supersede their leasehold interest.

The non-disturbance component of the contract reinforces the tenant's rights by ensuring that, even if the property undergoes foreclosure or changes ownership, the tenant's lease will remain in effect and their rights will be protected. This provision safeguards the tenant from sudden eviction or any interruption in their business operations that might arise due to landlord default or foreclosure.

Lastly, the attornment clause in the SNDA contract mandates that in the event of any change in ownership or transfer of the property, the tenant will recognize the new owner as the landlord and continue to perform their obligations under the lease agreement. This clause establishes a formal acknowledgment of the tenant's commitment to maintain a solid tenancy relationship, regardless of changes in property ownership.

Overall, this tenant-friendly SNDA template provides a clear understanding of the rights and responsibilities of both tenant and landlord/lender in circumstances involving foreclosure, property transfer, or any potential disruptions to the tenant's leasehold interest.