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In this tutorial, Walt Boutin explains the Subordination and Non-Disturbance Agreement (SNDA) in leasing. The SNDA involves agreeing to subordinate your lease to any current or future financing, which ensures that if the property undergoes foreclosure, your lease will be honored, preventing eviction or rent increases. This agreement primarily benefits tenants, as it provides security in their tenancy despite changes in property ownership. It also emphasizes the importance of mutual respect for leasing rights between tenants and landlords. While smaller tenants may struggle to obtain an SNDA, it is particularly valuable for larger tenants or those making significant investments in the property.
