New Mexico Subordination Nondisturbance and Attornment Agreement

• Category: Landlord Tenant - Subordination
• State: Multi-State
• Control #: US-0734-WG
• Format: Word; Rich Text

Description

Subordination Nondisturbance and Attornment Agreement A New Mexico Subordination Nondisturbance and Attornment Agreement (SODA) is a legal contract that outlines the relationship between a landlord, tenant, and a lender in the context of a commercial real estate lease. This agreement plays a crucial role in protecting the interests of all parties involved, especially in situations where the landlord faces foreclosure or the tenant wants reassurance that their lease will be honored by the lender. A typical New Mexico SODA consists of three key components: subordination, nondisturbance, and attornment. Let's delve deeper into each: 1. Subordination: This clause addresses the priority of rights in case of default, foreclosure, or sale of the property. It establishes that the lender's mortgage or deed of trust takes precedence over the lease agreement, meaning that in the event of the landlord's default, the lender has the authority to foreclose on the property, potentially terminating the lease. By agreeing to subordination, the tenant acknowledges the superior claim of the lender and waives any right to assert priority over the lender's interests. 2. Nondisturbance: This provision assures the tenant that, despite the landlord's default or the property's foreclosure, the lender will recognize their lease rights and allow them to continue occupying the premises uninterrupted. By signing the SODA, the lender agrees not to disturb the tenant's occupancy and to honor the lease's terms and conditions, provided the tenant complies with their obligations under the lease. 3. Attornment: This clause requires the tenant to recognize and accept a new landlord or owner, typically the lender or the purchaser in a foreclosure sale. It ensures that in the event of a change in ownership, the tenant will automatically and unconditionally become the tenant of the new landlord and remain bound by the lease's terms and conditions. Within the realm of New Mexico SODA agreements, there can be variations based on the specific needs and circumstances of the parties involved. For instance, there may be separate Sodas for retail leases, office leases, or industrial leases. Each type of SODA would include the essential subordination, nondisturbance, and attornment elements but tailored to meet the respective industry's requirements and practices. To summarize, a New Mexico Subordination Nondisturbance and Attornment Agreement is a critical legal document that establishes the rights and obligations of a landlord, tenant, and lender. It ensures the lender's superior claim in case of default, protects the tenant's right to lease enforcement, and mandates the tenant's recognition of a new landlord in case of transfer of ownership.

A New Mexico Subordination Nondisturbance and Attornment Agreement (SODA) is a legal contract that outlines the relationship between a landlord, tenant, and a lender in the context of a commercial real estate lease. This agreement plays a crucial role in protecting the interests of all parties involved, especially in situations where the landlord faces foreclosure or the tenant wants reassurance that their lease will be honored by the lender. A typical New Mexico SODA consists of three key components: subordination, nondisturbance, and attornment. Let's delve deeper into each: 1. Subordination: This clause addresses the priority of rights in case of default, foreclosure, or sale of the property. It establishes that the lender's mortgage or deed of trust takes precedence over the lease agreement, meaning that in the event of the landlord's default, the lender has the authority to foreclose on the property, potentially terminating the lease. By agreeing to subordination, the tenant acknowledges the superior claim of the lender and waives any right to assert priority over the lender's interests. 2. Nondisturbance: This provision assures the tenant that, despite the landlord's default or the property's foreclosure, the lender will recognize their lease rights and allow them to continue occupying the premises uninterrupted. By signing the SODA, the lender agrees not to disturb the tenant's occupancy and to honor the lease's terms and conditions, provided the tenant complies with their obligations under the lease. 3. Attornment: This clause requires the tenant to recognize and accept a new landlord or owner, typically the lender or the purchaser in a foreclosure sale. It ensures that in the event of a change in ownership, the tenant will automatically and unconditionally become the tenant of the new landlord and remain bound by the lease's terms and conditions. Within the realm of New Mexico SODA agreements, there can be variations based on the specific needs and circumstances of the parties involved. For instance, there may be separate Sodas for retail leases, office leases, or industrial leases. Each type of SODA would include the essential subordination, nondisturbance, and attornment elements but tailored to meet the respective industry's requirements and practices. To summarize, a New Mexico Subordination Nondisturbance and Attornment Agreement is a critical legal document that establishes the rights and obligations of a landlord, tenant, and lender. It ensures the lender's superior claim in case of default, protects the tenant's right to lease enforcement, and mandates the tenant's recognition of a new landlord in case of transfer of ownership.