California 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. A California Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document involving three parties: the tenant (also known as the lessee), the lender providing the commercial loan, and the landlord of the leased property. This agreement outlines the rights and obligations of each party in the event of a default or foreclosure on the loan, ensuring the tenant's lease rights are protected. In California, there are two types of Subordination, Non-Disturbance, and Attornment Agreements related to commercial loans: 1. "Subordination Agreement": This agreement establishes the priority of liens on the leased property. Typically, the tenant's lease is subordinated to the lender's mortgage or deed of trust, meaning in case of default, the lender's rights take precedence over the tenant's lease rights. The tenant agrees to subordinate its lease to the lender, making the lender the primary lien holder. 2. "Non-Disturbance Agreement": This agreement assures the tenant that in the event of a foreclosure, the lender will not disturb the tenant's rights or evict them. The lender acknowledges the tenant's lease and agrees not to terminate it or disrupt the tenant's possession of the leased premises due to the borrower's default. 3. "Attornment Agreement": This agreement binds the tenant to recognize and attorn to the lender as the new owner or landlord in the event of a foreclosure. It obligates the tenant to continue paying rent to the lender or its designated representative, even after a change in ownership occurs due to foreclosure. The California Subordination, Non-Disturbance, and Attornment Agreement is crucial for all three parties involved. For tenants, it provides security that their lease rights will be protected even if the property undergoes a change in ownership due to foreclosure. Lenders benefit from the agreement by ensuring they can sell the property to recover their investment without disrupting the tenant's occupancy. Landlords can attract potential tenants as this agreement guarantees the tenant's lease rights remain intact even in cases of foreclosure. Keywords: California, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, SODA, tenant, lender, landlord, priority of liens, default, foreclosure, mortgage, deed of trust, lease rights, subordinated, lien holder, non-disturbance, eviction, possession, attorn, change in ownership, security, investment, occupancy.

A California Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document involving three parties: the tenant (also known as the lessee), the lender providing the commercial loan, and the landlord of the leased property. This agreement outlines the rights and obligations of each party in the event of a default or foreclosure on the loan, ensuring the tenant's lease rights are protected. In California, there are two types of Subordination, Non-Disturbance, and Attornment Agreements related to commercial loans: 1. "Subordination Agreement": This agreement establishes the priority of liens on the leased property. Typically, the tenant's lease is subordinated to the lender's mortgage or deed of trust, meaning in case of default, the lender's rights take precedence over the tenant's lease rights. The tenant agrees to subordinate its lease to the lender, making the lender the primary lien holder. 2. "Non-Disturbance Agreement": This agreement assures the tenant that in the event of a foreclosure, the lender will not disturb the tenant's rights or evict them. The lender acknowledges the tenant's lease and agrees not to terminate it or disrupt the tenant's possession of the leased premises due to the borrower's default. 3. "Attornment Agreement": This agreement binds the tenant to recognize and attorn to the lender as the new owner or landlord in the event of a foreclosure. It obligates the tenant to continue paying rent to the lender or its designated representative, even after a change in ownership occurs due to foreclosure. The California Subordination, Non-Disturbance, and Attornment Agreement is crucial for all three parties involved. For tenants, it provides security that their lease rights will be protected even if the property undergoes a change in ownership due to foreclosure. Lenders benefit from the agreement by ensuring they can sell the property to recover their investment without disrupting the tenant's occupancy. Landlords can attract potential tenants as this agreement guarantees the tenant's lease rights remain intact even in cases of foreclosure. Keywords: California, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, SODA, tenant, lender, landlord, priority of liens, default, foreclosure, mortgage, deed of trust, lease rights, subordinated, lien holder, non-disturbance, eviction, possession, attorn, change in ownership, security, investment, occupancy.