Montana Tenant's Subordination (General - to a Lease/Easement)
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FAQ
Commercial leases often contain what is called a subordination, non-disturbance, and attornment agreement (SNDA). SNDAs outline certain rights of the tenant, the landlord, and related third parties, like the landlord's lender or a property purchaser.
A tenant estoppel confirms in writing that a lease exists and outlines the conditions and terms of that lease. SNDA stands for Subordination, Non-Disturbance and Attornment Agreement. This is an agreement between a tenant and a lender that spells out important rights for each party.
Tell your landlord in the notice that if the problem isn't fixed within 14 days, this is your written notice that you will terminate your lease in 30 days. If you need emergency repairs you can give your landlord 3 working days to fix the problem (instead of 14 days).
A nondisturbance clause is a provision in a mortgage contract that ensures that a rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon by the lender.
If the underlying lease (or a memorandum thereof) is recorded in the land records, then the Bank will absolutely need to record the SNDA as well ? this is what gives the Deed of Trust lien priority over the lease, and prevents the lease from being a B-II exception in the Bank's mortgagee policy of title insurance.
SDNA stands for Subordination Non-Disturbance and Attornment. It essentially guarantees that if the landlord defaults, neither the landlord nor the lender can cancel a tenant's lease.
