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In this tutorial, Walt Boutin explains the Subordination and Non-Disturbance Agreement (SNDA) in leasing. The SNDA allows a tenant to subordinate their lease to future financing, which ensures that if the property is foreclosed, the tenant's lease will still be honored—meaning they won't be disturbed, kicked out, or face rent increases. The agreement also requires tenants to respect the landlord's rights. This clause is beneficial for tenants, particularly those making significant investments in a property, as it provides protection during foreclosure situations. However, smaller tenants may have difficulty obtaining such agreements.
