Arizona Attornment Provision in a Sublease

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This office lease is extremely harsh on the subtenant and grants no non-disturbance rights or any other protections.

Arizona Attornment Provision in a Sublease: A Detailed Description In the realm of commercial real estate leasing, subleasing is a common practice that allows a tenant to lease a portion or the entire leased premises to another party known as the subtenant. To ensure proper legal enforcement in such agreements, a sublease typically contains various provisions addressing different aspects of the relationship between the sublandlord (original tenant) and the subtenant. One key provision found in subleases is the Arizona Attornment Provision. The Arizona Attornment Provision is a clause that outlines the agreement between the sublandlord and subtenant in regard to the subtenant's obligation to recognize and attorn to the primary landlord should a situation arise that requires their direct relationship. This provision is crucial in situations where the primary lease between the landlord and sublandlord is terminated, and the primary landlord wishes the subtenant to continue the lease or negotiate new terms directly with them. There are several types of Arizona Attornment Provisions that can be included in a sublease agreement, depending on the parties involved and the specific circumstances. Some common variations include: 1. Standard Attornment Provision: This type of provision requires the subtenant to recognize the primary landlord as the new landlord in the event of lease termination or foreclosure. The subtenant agrees to attorn to the primary landlord, accepting them as their direct landlord, and agrees to be bound by the terms of the primary lease to the extent applicable. 2. Non-Disturbance Attornment Provision: This provision provides protection for the subtenant in case of lease termination or foreclosure. It states that, if the primary lease is terminated or the property is foreclosed upon, the subtenant's rights to possess the premises will remain unaffected as long as the subtenant complies with the terms of the sublease. 3. Attornment Waiver Provision: In some cases, the sublandlord and subtenant may agree to waive the requirement of attornment entirely. This provision relieves the subtenant from the obligation to recognize the primary landlord as their direct landlord and negotiate new lease terms directly with them. Instead, the subtenant solely deals with the sublandlord, maintaining their existing lease terms and conditions. Including an Arizona Attornment Provision in a sublease provides clarity and protection for both the sublandlord and subtenant if circumstances change during the course of the sublease. It ensures a smooth transition and potential negotiation of new lease terms if necessary while clarifying the parties' roles and responsibilities. Key relevant keywords: Arizona Attornment Provision, sublease, subtenant, sublandlord, commercial real estate, primary lease, foreclosure, termination, negotiate, non-disturbance attornment provision, attornment waiver provision, recognition, direct landlord, lease terms and conditions.

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FAQ

What is Subordination? Subordination is putting something in a lower position or rank. Therefore, a subordination agreement puts the lease below the mortgage loan in priority. Mortgage lenders want the leases to be subordinate to the mortgage. That way, the mortgage loan is paid first if there is a foreclosure.

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.

A tenant estoppel confirms in writing that a lease exists and outlines the conditions and terms of that lease. SNDA stands for Subordination, Non-Disturbance and Attornment Agreement. This is an agreement between a tenant and a lender that spells out important rights for each party.

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.

The attornment clause requires tenants to acknowledge any new owner of the property as the landlord.

What is an SNDA? A subordination, non-disturbance, and attornment clause outlines the rights of the tenant, landlord, and third parties with an interested in the property. Potential third parties included in an SNDA include a lender funding the building or a party buying the property.

Use Clauses This clause defines how the tenant can and can't use the property they're leasing. The use clause may be very specific, so it's important that you read its terms carefully.

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Check the related document templates or start the search over to locate the appropriate file. Hit Buy now and register your account. If you already have an ... It is all parties' expressed intent that, should the Original Sublease terminate for any reason whatsoever, including the voluntary surrender of same by Atara ...of cost, beginning in the Lease Year in which the Additional Construction is complete and ready ... Such sublease contains the attornment provisions of Paragraph ... a statement that the lender will not be bound by lease amendments and rent reductions made without the lender's prior approval. Lenders may also use attornment ... Landlord hereby consents to the Sublease, subject to the following terms, covenants and agreements of the parties, and in consideration of such consent, Tenant ... Any mortgage, deed of trust or other encumbrance created by Landlord and permitted by Tenant shall be subject to this Lease, all subleases and all their ... Tenant and Subtenant hereby represent and warrant to Landlord that the copy of the Sublease attached hereto is a full, complete and accurate copy of the ... Unless provided for in the lease agreement between the parties, there are no compliance certificates required of the landlord in a non-residential lease. Lease Grant The Premises are hereby leased to Tenant from Landlord, together with the right to use any portions of the Property that are designated by Landlord ... For and in consideration of the rental and of the covenants and agreements hereinafter set forth to be kept and performed by Tenant, Landlord hereby leases ...

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Arizona Attornment Provision in a Sublease