Idaho 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. Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document commonly used in commercial real estate transactions involving a commercial loan. This agreement outlines the relationship between the landlord, tenant, and lender to protect their respective interests. Keywords: Idaho SODA agreement, commercial loan, subordination, non-disturbance, attornment, lease. 1. Subordination Clause: In an Idaho SODA agreement, the subordination clause addresses the priority of interests between the commercial lender and the landlord. It states that the lender's mortgage or deed of trust takes priority over the lease, making the lender's rights superior in case of default. 2. Non-Disturbance Clause: The non-disturbance clause in an Idaho SODA agreement ensures that in the event of foreclosure or other actions taken by the lender against the landlord, the tenant's lease rights will be protected. The lender agrees not to disturb the tenant's use and occupancy rights as long as the tenant fulfills its lease obligations. 3. Attornment Clause: The attornment clause establishes the tenant's obligation to recognize the lender as the new landlord if the property ownership changes after foreclosure or other similar events. The tenant agrees to fulfill its lease obligations towards the new owner, be it the lender or a subsequent buyer. Types of Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan: 1. Stand-alone SODA: This type of SODA agreement is executed separately from the lease agreement and the loan documents. It ensures that each party's rights and obligations are explicitly defined, giving all parties security and clarity regarding their interests. 2. SODA as Addendum: This type of SODA agreement is attached as an addendum to the lease agreement. It becomes an integral part of the lease, outlining the lender's rights and tenant protections in case of default and foreclosure. 3. Lender-required SODA: In some instances, lenders may require tenants to sign an SODA as a condition for granting the commercial loan. This type of agreement is initiated by the lender and ensures the lender's interests are protected. 4. Tenant-requested SODA: Sometimes, the tenant may request an SODA to protect their lease rights in case of foreclosure or other actions taken by the lender. In such cases, the tenant initiates the agreement to secure their occupancy and mitigate potential disruptions. Overall, an Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease is a crucial document that safeguards the interests of the lender, landlord, and tenant in a commercial real estate transaction. It establishes the priority of rights, ensures tenant protection, and facilitates a smooth transition of ownership if necessary.

Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document commonly used in commercial real estate transactions involving a commercial loan. This agreement outlines the relationship between the landlord, tenant, and lender to protect their respective interests. Keywords: Idaho SODA agreement, commercial loan, subordination, non-disturbance, attornment, lease. 1. Subordination Clause: In an Idaho SODA agreement, the subordination clause addresses the priority of interests between the commercial lender and the landlord. It states that the lender's mortgage or deed of trust takes priority over the lease, making the lender's rights superior in case of default. 2. Non-Disturbance Clause: The non-disturbance clause in an Idaho SODA agreement ensures that in the event of foreclosure or other actions taken by the lender against the landlord, the tenant's lease rights will be protected. The lender agrees not to disturb the tenant's use and occupancy rights as long as the tenant fulfills its lease obligations. 3. Attornment Clause: The attornment clause establishes the tenant's obligation to recognize the lender as the new landlord if the property ownership changes after foreclosure or other similar events. The tenant agrees to fulfill its lease obligations towards the new owner, be it the lender or a subsequent buyer. Types of Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan: 1. Stand-alone SODA: This type of SODA agreement is executed separately from the lease agreement and the loan documents. It ensures that each party's rights and obligations are explicitly defined, giving all parties security and clarity regarding their interests. 2. SODA as Addendum: This type of SODA agreement is attached as an addendum to the lease agreement. It becomes an integral part of the lease, outlining the lender's rights and tenant protections in case of default and foreclosure. 3. Lender-required SODA: In some instances, lenders may require tenants to sign an SODA as a condition for granting the commercial loan. This type of agreement is initiated by the lender and ensures the lender's interests are protected. 4. Tenant-requested SODA: Sometimes, the tenant may request an SODA to protect their lease rights in case of foreclosure or other actions taken by the lender. In such cases, the tenant initiates the agreement to secure their occupancy and mitigate potential disruptions. Overall, an Idaho Subordination, Non-Disturbance, and Attornment Agreement of a Lease is a crucial document that safeguards the interests of the lender, landlord, and tenant in a commercial real estate transaction. It establishes the priority of rights, ensures tenant protection, and facilitates a smooth transition of ownership if necessary.