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In this one-minute tutorial, Walt Boutin explains the S NDA, or Subordination and Non-Disturbance Agreement, which is commonly encountered in leasing. The agreement involves the tenant agreeing to subordinate their lease to any current or future financing. In return, the tenant receives a non-disturbance assurance, meaning that if the landlord faces foreclosure, the tenant’s lease will be honored, preventing eviction or rent increases. The agreement fosters mutual respect for lease terms—both tenant and landlord commit to uphold the lease. While larger tenants often benefit from this protection, smaller tenants might lack the negotiating power to secure it, despite its importance in safeguarding their interests during foreclosure events.
