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Attornment is the agreement that a tenant consents to acknowledge a person who purchases an estate that the tenant has leased as his new landlord. Restated, when the owner of leased property sells the property to a third party, attornment is the transfer of authority as landlord to the purchaser.
The primary effect of an SNDA is that the tenant agrees to subordinate its lease to the mortgage in exchange for the lender agreeing not to disturb the tenant if the lender forecloses its superior security interest in the real property.
Non-disturbance is a contractual agreement by the lender not to disturb tenants possession of the property rented in the event of a foreclosure. A tenant should require a non-disturbance agreement from a lender in any situation in which the tenant is agreeing to subordinate the lease to the lien of the loan.
The primary effect of an SNDA is that the tenant agrees to subordinate its lease to the mortgage in exchange for the lender agreeing not to disturb the tenant if the lender forecloses its superior security interest in the real property.
The subordination clause gives the third-party lender the option to terminate the lease in the event of commercial foreclosure. A non-disturbance clause or agreement provides the tenant the right to continue occupying the leased premises as long as they do not default.
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Overview. An SNDA is a tri-party agreement between a tenant, landlord, and landlords mortgagee under which the tenant agrees to subordinate its lease to the mortgagees lien in exchange for the mortgagees agreement to honor the terms of the lease if mortgagee forecloses on the property.
A nondisturbance clause is a provision in a mortgage contract that ensures that a rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon by the lender.
Non-disturbance is a contractual agreement by the lender not to disturb tenants possession of the property rented in the event of a foreclosure. A tenant should require a non-disturbance agreement from a lender in any situation in which the tenant is agreeing to subordinate the lease to the lien of the loan.
What are they, and why do landlords require them? Estoppel certificates and Subordination and Non-Disturbance Agreements (SNDAs) are the legal documentation that assures the rights of all parties are upheld. Tenants should not be concerned, but rather should welcome the documents with open arms.
Lenders benefit from SNDAs because this gives the mortgage priority over individual leases. They can transfer ownership of the property from one hand to the other without fearing the tenants will abandon their leases.

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