Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• Control #: US-1176BG
• Format: Word; Rich Text

Description

The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure. Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document applicable in the state of Arizona, ensuring protection for both lenders and tenants in commercial real estate transactions. This agreement typically arises in the context of a commercial loan, where the lender requires the tenant to sign an SODA as a condition to obtaining a loan secured by the property. The purpose of an SODA is to establish the rights and obligations of the lender, tenant, and the landlord in the event of default, foreclosure, or other circumstances that may impact the lease. Keywords: Arizona, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, Tenant, Lender, Foreclosure. Different Types of Arizona Subordination, Non-Disturbance, and Attornment Agreements include: 1. Subordination Agreement: This type of SODA outlines the tenant's agreement to subordinate their leasehold interest to the lender's lien or mortgage. In essence, the tenant acknowledges that the lender's interest in the property takes precedence over their leasehold rights. 2. Non-Disturbance Agreement: This agreement ensures that the tenant's rights will not be disturbed by the lender in the event of a foreclosure or default by the landlord. It provides the tenant with assurance that they can continue occupying the premises under the terms of their lease despite any action taken by the lender. 3. Attornment Agreement: This agreement establishes the tenant's obligation to recognize and attorn to a new landlord in the event of a foreclosure or change in ownership of the property. The tenant agrees to maintain the terms of the lease with the new landlord, ensuring continuity of the lease and protecting both the tenant's rights and the lender's collateral. The Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan is crucial for all parties involved in a commercial real estate transaction. It safeguards the interests of the lender by establishing subordination, while also providing the tenant with assurances of non-disturbance and protection through attornment. By addressing these key aspects, an SODA helps maintain stability and clarity in lease agreements, even during turbulent financial situations or changes in property ownership.

Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document applicable in the state of Arizona, ensuring protection for both lenders and tenants in commercial real estate transactions. This agreement typically arises in the context of a commercial loan, where the lender requires the tenant to sign an SODA as a condition to obtaining a loan secured by the property. The purpose of an SODA is to establish the rights and obligations of the lender, tenant, and the landlord in the event of default, foreclosure, or other circumstances that may impact the lease. Keywords: Arizona, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, Tenant, Lender, Foreclosure. Different Types of Arizona Subordination, Non-Disturbance, and Attornment Agreements include: 1. Subordination Agreement: This type of SODA outlines the tenant's agreement to subordinate their leasehold interest to the lender's lien or mortgage. In essence, the tenant acknowledges that the lender's interest in the property takes precedence over their leasehold rights. 2. Non-Disturbance Agreement: This agreement ensures that the tenant's rights will not be disturbed by the lender in the event of a foreclosure or default by the landlord. It provides the tenant with assurance that they can continue occupying the premises under the terms of their lease despite any action taken by the lender. 3. Attornment Agreement: This agreement establishes the tenant's obligation to recognize and attorn to a new landlord in the event of a foreclosure or change in ownership of the property. The tenant agrees to maintain the terms of the lease with the new landlord, ensuring continuity of the lease and protecting both the tenant's rights and the lender's collateral. The Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan is crucial for all parties involved in a commercial real estate transaction. It safeguards the interests of the lender by establishing subordination, while also providing the tenant with assurances of non-disturbance and protection through attornment. By addressing these key aspects, an SODA helps maintain stability and clarity in lease agreements, even during turbulent financial situations or changes in property ownership.