This office lease form shall be subject and subordinate to all present and future ground leases, overriding leases or underlying leases and/or grants of term of the Land and/or the building or the portion thereof in which the Demised Premises are located. This Section shall be self-operative and no further instrument of subordination shall be required. This form also states that the landlord and the tenant agree to share equally all costs incurred in connection with obtaining any Non-disturbance Agreement from the existing superior lessors or superior mortgagees.
Arkansas Nondisturbance Provision — Tenant Friendly: A Detailed Description In the context of real estate and lease agreements, the Arkansas Nondisturbance Provision is a tenant-friendly clause that seeks to protect the rights and interests of tenants in the event of a foreclosure on the property they are renting. This provision is particularly beneficial for tenants as it ensures that their lease agreement remains valid, and they can continue occupying the premises even if the property changes ownership due to foreclosure. The Arkansas Nondisturbance Provision, often referred to as an SODA (Subordination, Non-Disturbance, and Attornment Agreement), is a legally binding document that establishes the rights and obligations of three parties: the tenant, the landlord, and the mortgage lender. This provision mitigates the potential disruption that tenants may experience during the foreclosure process by providing them with certain protections and preserving their lease rights. Key elements of the Arkansas Nondisturbance Provision include: 1. Subordination: The tenant agrees to subordinate their lease agreement to the mortgage lender's lien, ensuring that the lender's rights take priority in the event of foreclosure. 2. Non-Disturbance: The lender agrees not to disturb the tenant's possession and enjoyment of the property as long as the tenant complies with the terms of the lease agreement, even after the property changes hands due to foreclosure. 3. Attornment: The tenant agrees to recognize the foreclosure purchaser as the new landlord and attorns to them, meaning they accept the new owner as their landlord and agree to fulfill their lease obligations under the new ownership. This provision serves as a safeguard for tenants, particularly those operating commercial businesses or residing in properties subject to mortgage foreclosures. By securing a tenant-friendly nondisturbance provision, tenants can continue their operations, maintain their customer base, and avoid potential financial losses that could arise from being forced to vacate their premises. Different types of Arkansas Nondisturbance Provisions can vary based on the specific terms negotiated between tenants, landlords, and lenders. Some provisions may include additional clauses that outline the tenant's right to a notice period before eviction, limits on rent increases, or conditions for early termination without penalty in case of foreclosure. It is essential for tenants to thoroughly review and negotiate the terms of the nondisturbance provision to ensure it adequately addresses their specific needs and concerns. In conclusion, the Arkansas Nondisturbance Provision is a tenant-friendly clause that safeguards tenant rights and interests during property foreclosures. It subordinates the lease agreement to the lender's lien while providing non-disturbance protection and requiring the attornment of the tenant to the new owner. Tenants should carefully review and negotiate the terms of this provision, considering their unique circumstances to ensure optimum protection during foreclosure situations.
