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.
North Carolina Nondisturbance Provision: A Tenant-Friendly Safeguard for Commercial Leases In commercial real estate leasing, the North Carolina Nondisturbance Provision is a crucial clause that protects the rights and interests of tenants in the event of a landlord's default. This tenant-friendly provision ensures that in the case of foreclosure or other landlord-related issues, the tenant's lease will be recognized and honored by the new owner or mortgagee. It aims to prevent disruption to the tenant's business operations and provides security during periods of uncertainty. The North Carolina Nondisturbance Provision serves as a shield for tenants, safeguarding them against potential issues arising from situations where the landlord breaches lease agreements or defaults on their mortgage. With this provision in place, tenants can continue operating their businesses without significant interruptions or fear of eviction. There are a few different types of North Carolina Nondisturbance Provisions that tenants should be aware of: 1. Traditional Nondisturbance Provision: This standard provision ensures that the tenant's lease will remain valid and enforceable, even if the landlord faces foreclosure or transfers ownership of the property. It requires the new owner to recognize the tenant's rights and obligations under the lease. 2. Subordination, Attornment, and Non-Disturbance (SODA): This is a comprehensive provision that not only safeguards the tenant's rights but also addresses the relationship between the tenant, landlord, and lender. Subordination refers to the tenant agreeing that their lease will be secondary to the lender's security interest. Attornment means the tenant agrees to recognize the new owner or lender as their landlord. Non-disturbance ensures that the tenant cannot be evicted in the event of foreclosure or default. 3. Partial Nondisturbance Provision: In certain situations, a tenant might negotiate a partial nondisturbance provision that only protects a specific portion of their leased space. This can be useful when the tenant occupies multiple units within a larger property or in complex leasing structures. It's important for tenants to carefully review and understand the North Carolina Nondisturbance Provision before signing a commercial lease. Consider consulting with a real estate attorney to ensure that the provision adequately protects your rights and interests as a tenant. By including a North Carolina Nondisturbance Provision — whether it is the traditional provision, a comprehensive SODA, or a partial provision — tenants can mitigate the risks associated with landlord defaults, foreclosure, or change of ownership situations. This clause provides peace of mind and security, allowing businesses to focus on their operations without the fear of unexpected disruptions.North Carolina Nondisturbance Provision: A Tenant-Friendly Safeguard for Commercial Leases In commercial real estate leasing, the North Carolina Nondisturbance Provision is a crucial clause that protects the rights and interests of tenants in the event of a landlord's default. This tenant-friendly provision ensures that in the case of foreclosure or other landlord-related issues, the tenant's lease will be recognized and honored by the new owner or mortgagee. It aims to prevent disruption to the tenant's business operations and provides security during periods of uncertainty. The North Carolina Nondisturbance Provision serves as a shield for tenants, safeguarding them against potential issues arising from situations where the landlord breaches lease agreements or defaults on their mortgage. With this provision in place, tenants can continue operating their businesses without significant interruptions or fear of eviction. There are a few different types of North Carolina Nondisturbance Provisions that tenants should be aware of: 1. Traditional Nondisturbance Provision: This standard provision ensures that the tenant's lease will remain valid and enforceable, even if the landlord faces foreclosure or transfers ownership of the property. It requires the new owner to recognize the tenant's rights and obligations under the lease. 2. Subordination, Attornment, and Non-Disturbance (SODA): This is a comprehensive provision that not only safeguards the tenant's rights but also addresses the relationship between the tenant, landlord, and lender. Subordination refers to the tenant agreeing that their lease will be secondary to the lender's security interest. Attornment means the tenant agrees to recognize the new owner or lender as their landlord. Non-disturbance ensures that the tenant cannot be evicted in the event of foreclosure or default. 3. Partial Nondisturbance Provision: In certain situations, a tenant might negotiate a partial nondisturbance provision that only protects a specific portion of their leased space. This can be useful when the tenant occupies multiple units within a larger property or in complex leasing structures. It's important for tenants to carefully review and understand the North Carolina Nondisturbance Provision before signing a commercial lease. Consider consulting with a real estate attorney to ensure that the provision adequately protects your rights and interests as a tenant. By including a North Carolina Nondisturbance Provision — whether it is the traditional provision, a comprehensive SODA, or a partial provision — tenants can mitigate the risks associated with landlord defaults, foreclosure, or change of ownership situations. This clause provides peace of mind and security, allowing businesses to focus on their operations without the fear of unexpected disruptions.
