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In this tutorial, Walt Boutin explains the S NDA (Subordination and Non-Disturbance Agreement). This agreement involves the tenant agreeing to subordinate their lease to any existing or future financing, which provides the benefit of a non-disturbance clause. This ensures that if the landlord goes into foreclosure, the tenant will not be evicted, rent won’t increase, and their lease will be honored. The tenant also agrees to respect the landlord's rights under the lease. While smaller tenants often struggle to obtain such agreements, larger tenants or those making significant investments in a property should seek them out for added protection during foreclosure scenarios.
