This office lease form shall be subject and subordinate to all present and future ground leases, overriding leases or underlying leases and/or grants of term of the Land and/or the building or the portion thereof in which the Demised Premises are located. This Section shall be self-operative and no further instrument of subordination shall be required. This form also states that the landlord and the tenant agree to share equally all costs incurred in connection with obtaining any Non-disturbance Agreement from the existing superior lessors or superior mortgagees.
The Maine Nondisturbance Provision, also known as the Maine Nondisturbance Agreement, is a legal provision designed to protect the rights of tenants in commercial real estate leases. This provision ensures that tenants can continue their business operations, even in the event of certain changes or disruptions in the ownership or occupancy of the leased property. In more specific terms, the Maine Nondisturbance Provision provides tenants with assurances that their lease agreements will remain enforceable and unaffected, even if there is a foreclosure, sale, or transfer of the property to a new owner. This provision is tenant-friendly as it safeguards their rights and allows them to continue their business activities without unnecessary disruptions or uncertainties. In essence, the Maine Nondisturbance Provision is a three-party agreement involving the tenant, the landlord, and a third-party lender or mortgagee. When a tenant enters into a lease agreement with a landlord, and the landlord has mortgaged the property to secure a loan from a lender, the tenant can request that a nondisturbance provision be included in the lease document. The Maine Nondisturbance Provision establishes a relationship between the tenant and the lender, stating that if the property is ever foreclosed upon or transferred to a new owner, the tenant's rights and lease terms will be honored and respected by the new owner or foreclosing lender. This provision essentially shields the tenant from being evicted or forced to renegotiate their lease in the event of a change in the property ownership. Different variations of the Maine Nondisturbance Provision may exist, depending on the specific terms and conditions negotiated between the tenant, landlord, and lender. Some key elements that may be addressed in these provisions include: 1. Continuation of Lease Agreement: The provision ensures that the lease agreement remains in effect and binding on all parties, including the new property owner or lender, without any modifications or interruptions. 2. Rent Payments and Obligations: It outlines the tenant's responsibility to continue paying rent and other obligations under the original lease, even if there is a change in ownership or foreclosure. This allows the tenant to maintain normal operations without financial disruptions. 3. Tenant's Rights and Remedies: The provision may specify the tenant's rights and remedies in the event of a default by the landlord or new property owner, such as the ability to seek damages or terminate the lease agreement. 4. Notice and Communication Requirements: The provision may establish a requirement for the lender or new owner to provide the tenant with notice of any foreclosure proceedings or transfer of ownership, allowing the tenant to prepare and protect their interests accordingly. 5. Subordination and Non-Disturbance Agreement: This provision may also include a subordination clause, ensuring that the tenant's lease is subordinate to any mortgage or security interest in the property. This means that the lender's rights take precedence over the tenant's lease and that the tenant cannot interfere with the lender's foreclosure rights. In conclusion, the Maine Nondisturbance Provision is an essential tenant-friendly provision that offers protection and certainty to commercial tenants. It safeguards their lease agreements in the event of changes in property ownership, allowing them to continue operating their businesses without unnecessary disruption or renegotiation of lease terms.
