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In this one-minute lease clause tutorial, Walt Boutin discusses the Subordination and Non-Disturbance Agreement (SNDA). This agreement involves the tenant agreeing to subordinate their lease to any current or future financing. In exchange, the tenant receives a non-disturbance assurance, meaning that if the landlord faces foreclosure, the lease will be honored, protecting the tenant from eviction or rent increases. The agreement signifies mutual respect for the lease terms between the tenant and landlord. While smaller tenants may struggle to negotiate such agreements, larger tenants or those making significant investments in a property should pursue an SNDA for better security during potential financial turmoil.
