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In this video, Walt Boutin explains the Subordination and Non-Disturbance Agreement (SNDA), a lease clause beneficial for tenants. The SNDA means the tenant agrees to subordinate their lease to any current or future financing. In exchange, the non-disturbance aspect ensures that if the landlord faces foreclosure, the tenant’s lease will be honored, preventing eviction or rent increases. Both parties must respect each other’s lease rights. While smaller tenants may lack the leverage to obtain an SNDA, larger tenants or those making significant investments in a property should seek this agreement for added protection during potential foreclosure situations.
