This office lease form states that in the event of a mortgage foreclosure, or termination of any interest which is superior to the lease, the lease shall continue as a lease between the landlord's successors as Lessor and the tenant as lessee with the same force and effect as the originally entered into the lease and the tenant shall be permitted to remain in undisturbed possession, use and occupancy of the premises, provided that the tenant is not in default under the lease after the giving of notice and the expiration of the applicable grace or cure period as provided in the lease.
Hawaii General Nondisturbance Agreement (HONDA) is a legal contract that helps protect tenants' rights in the event of a property foreclosure or a change in ownership. This agreement ensures that tenants can continue occupying the premises and enjoy the same lease terms, conditions, and protections they previously had, even if the property is transferred to a new owner. The HONDA is commonly used in commercial real estate transactions, providing reassurance to commercial tenants that their lease agreements will remain valid and enforceable. This agreement is particularly important in Hawaii, where tourism plays a significant role in the economy and commercial properties are often leased to businesses in the hospitality industry. The Hawaii General Nondisturbance Agreement typically includes several key provisions: 1. Protection of Leasehold Interests: The agreement stipulates that the tenant's lease will not be disturbed or terminated due to a foreclosure or change in property ownership. It ensures that the tenant can continue operating their business undisturbed and have guaranteed access to the premises. 2. Subordination to Mortgage: The HONDA recognizes that the lease is subordinate to any mortgage or deed of trust on the property. This means that if the property owner defaults on their mortgage, the lender can foreclose on the property, but the tenant's lease will still remain in effect. 3. Attornment Clause: This clause establishes that the tenant is willing to recognize the new owner as the landlord, and will continue paying rent and complying with the terms of the lease. It also confirms the new owner's obligation to honor the existing lease. While the concept of the Hawaii General Nondisturbance Agreement remains fairly consistent across different transactions, there may be slight variations in its terms and conditions based on specific circumstances. Some variations include: 1. Commercial Leases: This type of HONDA is typically used for businesses leasing commercial properties such as retail stores, offices, or restaurants. 2. Hotel Leases: In Hawaii's tourism-driven industry, hotel operators often enter into HONDA agreements to protect their interests and ensure the smooth continuation of their operations during any change in property ownership. 3. Residential Leases: Though less common, HONDA agreements can also be used in the residential rental market to safeguard tenants in the event of foreclosure or a change in property ownership. In conclusion, Hawaii General Nondisturbance Agreement is a crucial legal tool that protects tenants' rights in the face of property foreclosure or a change in ownership. By securing the tenants' lease agreements and ensuring non-disruption of their occupancy, this agreement provides stability in Hawaii's dynamic real estate market.
