A subordination, non-disturbance and attornment (SNDA) agreement is actually three agreements in one. The "subordination" portion permits a lender of the property to become superior to the lien of the tenant's lease. The "non-disturbance" agreement protects the tenant as it permits the lease to stay in force so long as tenant is not in default. The "attornment" agreement creates a contractual bond between tenant and lender in which the tenant agrees it will recognize the lender as landlord in the event the landlord defaults on the mortgage. The SNDA language has taken on a new importance in this economic environment in which it is no longer shocking to learn that a landlord has walked away from its real estate after defaulting on the mortgage.
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