Nebraska Sample Subordination, Nondisturbance and Attornment Agreement

• Category: Corporations - Public
• State: Multi-State
• Control #: US-EG-9472
• Format: Word; Rich Text

Description

Subordination, Non-Disturbance and Attornment Agreement between 233 Broadway Owners LLC, Organic and Lehman Brothers Holding, Inc. regarding assurances of possession of premises dated 00/99. 5 pages. Nebraska Sample Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the relationship between a tenant, a landlord, and a lender. This agreement is commonly used in real estate transactions, particularly when commercial property is involved. In a nutshell, an SODA protects all parties involved by establishing the priority of rights and duties in case of default or foreclosure. It generally consists of three main components: subordination, nondisturbance, and attornment. 1. Subordination: This clause states that the tenant's leasehold interest is subordinate to the lender's mortgage or deed of trust. In other words, if the landlord defaults on their loan and the property goes into foreclosure, the lender's rights take precedence over the tenant's lease. This ensures that the lender can exercise their rights without disrupting the tenant's occupancy. 2. Nondisturbance: The nondisturbance provision assures the tenant that, even in the event of foreclosure, their leasehold rights will be respected by the lender. This means that the lender agrees not to disturb the tenant's possession or interfere with their rights as long as the tenant is in compliance with the terms of the lease. This provision provides the tenant with some security and reassurance. 3. Attornment: The attornment clause obligates the tenant to recognize and attorn to the lender as the new landlord if the property is foreclosed upon. This ensures continuity of lease obligations and allows the lender to step into the shoes of the previous landlord. Attornment also establishes a direct legal relationship between the tenant and the lender, protecting the lender's interest in the property. It's important to note that there may be variations of Nebraska Sample Subordination, Nondisturbance, and Attornment Agreements depending on the specific transaction and parties involved. Some variations include specific provisions addressing tenant improvements, lender's consent for lease modifications, or additional obligations of the parties. In conclusion, a Nebraska Sample Subordination, Nondisturbance, and Attornment Agreement is a vital document that safeguards the interests of tenants, landlords, and lenders in commercial real estate transactions. It delineates the order of priority in case of default or foreclosure, protects the tenant's rights, and ensures the lender's ability to enforce their rights.

Nebraska Sample Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the relationship between a tenant, a landlord, and a lender. This agreement is commonly used in real estate transactions, particularly when commercial property is involved. In a nutshell, an SODA protects all parties involved by establishing the priority of rights and duties in case of default or foreclosure. It generally consists of three main components: subordination, nondisturbance, and attornment. 1. Subordination: This clause states that the tenant's leasehold interest is subordinate to the lender's mortgage or deed of trust. In other words, if the landlord defaults on their loan and the property goes into foreclosure, the lender's rights take precedence over the tenant's lease. This ensures that the lender can exercise their rights without disrupting the tenant's occupancy. 2. Nondisturbance: The nondisturbance provision assures the tenant that, even in the event of foreclosure, their leasehold rights will be respected by the lender. This means that the lender agrees not to disturb the tenant's possession or interfere with their rights as long as the tenant is in compliance with the terms of the lease. This provision provides the tenant with some security and reassurance. 3. Attornment: The attornment clause obligates the tenant to recognize and attorn to the lender as the new landlord if the property is foreclosed upon. This ensures continuity of lease obligations and allows the lender to step into the shoes of the previous landlord. Attornment also establishes a direct legal relationship between the tenant and the lender, protecting the lender's interest in the property. It's important to note that there may be variations of Nebraska Sample Subordination, Nondisturbance, and Attornment Agreements depending on the specific transaction and parties involved. Some variations include specific provisions addressing tenant improvements, lender's consent for lease modifications, or additional obligations of the parties. In conclusion, a Nebraska Sample Subordination, Nondisturbance, and Attornment Agreement is a vital document that safeguards the interests of tenants, landlords, and lenders in commercial real estate transactions. It delineates the order of priority in case of default or foreclosure, protects the tenant's rights, and ensures the lender's ability to enforce their rights.