New Mexico Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• Control #: US-1176BG
• Format: Word; Rich Text

Description

The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure. Keywords: New Mexico Subordination, Non-Disturbance, Attornment Agreement, Commercial Loan A Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a crucial legal document that outlines the rights and responsibilities of various parties involved in a commercial property lease agreement, specifically in the context of a commercial loan. In New Mexico, there are two primary types of Sodas that are commonly used: 1. Subordination Agreement: The subordination clause within an SODA establishes the hierarchy of interests between the lender providing the commercial loan and the tenant leasing the property. The New Mexico Subordination Agreement ensures that in case of default or foreclosure, the rights of the lender will take precedence over the tenant's rights. By signing this agreement, the tenant acknowledges and consents to the lender's superior position. 2. Non-Disturbance Agreement: The non-disturbance clause in an SODA guarantees the tenant that, in the event of default or foreclosure proceedings, their lease agreement will remain intact. The New Mexico Non-Disturbance Agreement prevents the lender from interfering with the tenant's rights and occupancy of the leased premises, even if the property is seized or transferred to a new owner. This provides stability and security to the tenant, enabling them to continue operating their business without disruption. 3. Attornment Agreement: The attornment clause establishes that the tenant acknowledges the lender as the rightful owner of the property, even if there is a change in ownership due to foreclosure or other circumstances. The New Mexico Attornment Agreement binds the tenant to recognize and accept the new property owner as their landlord and continue paying rent to the new owner in a smooth transition. The purpose of these agreements is to protect the interests of all parties involved. The lender seeks assurance that their investment is secure, while the tenant desires continuity of their leasehold rights. New Mexico Sodas are crafted to address the specific legal requirements and guidelines applicable to the state, ensuring compliance with local regulations. In summary, a New Mexico Subordination, Non-Disturbance, and Attornment Agreement of a Lease pertaining to a Commercial Loan is a comprehensive legal document that defines the relationships between the lender, tenant, and potential new property owner. These agreements provide clarity, stability, and protection in the event of default, foreclosure, or transfer of ownership, safeguarding the interests and rights of all involved parties in the commercial lease agreement.

Keywords: New Mexico Subordination, Non-Disturbance, Attornment Agreement, Commercial Loan A Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a crucial legal document that outlines the rights and responsibilities of various parties involved in a commercial property lease agreement, specifically in the context of a commercial loan. In New Mexico, there are two primary types of Sodas that are commonly used: 1. Subordination Agreement: The subordination clause within an SODA establishes the hierarchy of interests between the lender providing the commercial loan and the tenant leasing the property. The New Mexico Subordination Agreement ensures that in case of default or foreclosure, the rights of the lender will take precedence over the tenant's rights. By signing this agreement, the tenant acknowledges and consents to the lender's superior position. 2. Non-Disturbance Agreement: The non-disturbance clause in an SODA guarantees the tenant that, in the event of default or foreclosure proceedings, their lease agreement will remain intact. The New Mexico Non-Disturbance Agreement prevents the lender from interfering with the tenant's rights and occupancy of the leased premises, even if the property is seized or transferred to a new owner. This provides stability and security to the tenant, enabling them to continue operating their business without disruption. 3. Attornment Agreement: The attornment clause establishes that the tenant acknowledges the lender as the rightful owner of the property, even if there is a change in ownership due to foreclosure or other circumstances. The New Mexico Attornment Agreement binds the tenant to recognize and accept the new property owner as their landlord and continue paying rent to the new owner in a smooth transition. The purpose of these agreements is to protect the interests of all parties involved. The lender seeks assurance that their investment is secure, while the tenant desires continuity of their leasehold rights. New Mexico Sodas are crafted to address the specific legal requirements and guidelines applicable to the state, ensuring compliance with local regulations. In summary, a New Mexico Subordination, Non-Disturbance, and Attornment Agreement of a Lease pertaining to a Commercial Loan is a comprehensive legal document that defines the relationships between the lender, tenant, and potential new property owner. These agreements provide clarity, stability, and protection in the event of default, foreclosure, or transfer of ownership, safeguarding the interests and rights of all involved parties in the commercial lease agreement.