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In this one-minute tutorial, Walt Boutin explains the Subordination and Non-Disturbance Agreement (SNDA) in leasing. The SNDA involves the tenant agreeing to subordinate their lease to any existing or future financing. In exchange, the tenant receives protection through a non-disturbance agreement, ensuring that in the event of foreclosure, the lease will be honored, preventing eviction or rent increases. Both parties commit to respecting each other's rights under the lease. While larger tenants or substantial investments in property can negotiate this agreement, smaller tenants may find it more difficult to obtain. Overall, the SNDA benefits tenants by providing security during potential foreclosure scenarios.
