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.
Minnesota Nondisturbance Provision — Tenant Friendly In the state of Minnesota, a nondisturbance provision is a contractual agreement often included in commercial leases to protect the rights of tenants in the event of foreclosure or a landlord's default on mortgage payments. This provision ensures that the tenant's occupancy rights will not be interfered with in the event of such circumstances, allowing them to continue operating their business without interruption. Key Features: 1. Tenant Protection: The Minnesota nondisturbance provision offers significant protection to tenants, safeguarding their leasehold interests in the property, even if the landlord defaults on their mortgage payments and the property goes into foreclosure. 2. Lease Continuation: This provision guarantees the tenant the right to remain in the leased premises, despite any foreclosure proceedings or changes in property ownership. 3. Business Continuity: By including a nondisturbance provision, tenants can ensure that their business operations will not be disrupted, providing them with security and peace of mind. 4. Tenant's Lender Relations: This provision typically requires the landlord's lender to recognize the tenant's lease and to refrain from terminating it following foreclosure, as long as the tenant is not in default. 5. Notification Requirement: The nondisturbance provision may include a requirement for the tenant to be promptly notified of any default by the landlord on mortgage payments or foreclosure proceedings, providing them with an opportunity to take appropriate action. Types of Minnesota Nondisturbance Provisions: 1. Standard Nondisturbance Provision: This is the most common type of nondisturbance provision, ensuring that the tenant's rights will be acknowledged and respected in the case of foreclosure or default. 2. Waiver of Subordination: Some leases may include an additional provision where the tenant waives their right to subordinate their lease to a future mortgage or conveyance, thereby strengthening their position in the event of foreclosure. Overall, the Minnesota nondisturbance provision offers tenants valuable protection in the face of potential disruptions caused by landlord defaults or foreclosures. It allows businesses to continue operating smoothly and minimizes uncertainty during periods of financial instability.
