In Maryland, a Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of parties involved in a real estate transaction. It is typically used in the context of a lease when the leased property is subject to a mortgage or other financing arrangements. A Maryland SODA agreement serves to establish the order of priority among a tenant's leasehold interest and a lender's security interest in the property. This agreement provides clarity and protection to all parties involved, ensuring that the tenant's rights are preserved even if the property is foreclosed upon or transferred to a new owner. Within the realm of Maryland SODA agreements, there are a few different types that are commonly encountered: 1. Tenant SODA: This type of agreement is entered into between a tenant (lessee) and a lender (mortgagee). It ensures that the tenant's leasehold rights will be recognized and respected by the lender in the event of foreclosure or transfer of ownership. 2. Landlord SODA: This agreement is signed by a landlord (lessor) and a lender (mortgagee). It ensures that the lender will not disturb the tenant's occupancy rights under an existing lease and will recognize the tenant as the lawful occupant of the property. 3. Lender SODA: This type of agreement is entered into between a lender (mortgagee) and a landlord (lessor). It confirms that the lender's security interest in the property is subordinate to the tenant's leasehold interest, making the tenant's occupancy rights unaffected by the lender's actions. Each type of Maryland SODA agreement serves a specific purpose and provides essential protections for tenants, landlords, and lenders involved in the real estate transaction. By clearly defining the relationship and priority of rights, these agreements help maintain stability and continuity of occupancy for tenants, even in the face of changes in property ownership or foreclosure proceedings.
In Maryland, a Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of parties involved in a real estate transaction. It is typically used in the context of a lease when the leased property is subject to a mortgage or other financing arrangements. A Maryland SODA agreement serves to establish the order of priority among a tenant's leasehold interest and a lender's security interest in the property. This agreement provides clarity and protection to all parties involved, ensuring that the tenant's rights are preserved even if the property is foreclosed upon or transferred to a new owner. Within the realm of Maryland SODA agreements, there are a few different types that are commonly encountered: 1. Tenant SODA: This type of agreement is entered into between a tenant (lessee) and a lender (mortgagee). It ensures that the tenant's leasehold rights will be recognized and respected by the lender in the event of foreclosure or transfer of ownership. 2. Landlord SODA: This agreement is signed by a landlord (lessor) and a lender (mortgagee). It ensures that the lender will not disturb the tenant's occupancy rights under an existing lease and will recognize the tenant as the lawful occupant of the property. 3. Lender SODA: This type of agreement is entered into between a lender (mortgagee) and a landlord (lessor). It confirms that the lender's security interest in the property is subordinate to the tenant's leasehold interest, making the tenant's occupancy rights unaffected by the lender's actions. Each type of Maryland SODA agreement serves a specific purpose and provides essential protections for tenants, landlords, and lenders involved in the real estate transaction. By clearly defining the relationship and priority of rights, these agreements help maintain stability and continuity of occupancy for tenants, even in the face of changes in property ownership or foreclosure proceedings.
