Nevada 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 Nevada Subordination Nondisturbance and Attornment Agreement (SODA) refers to a legal document executed between the landlord (often a lender) and the tenant when a commercial property is subject to a mortgage or a deed of trust. This agreement ensures that the tenant's right to occupy the premises will be recognized by the lender in case of foreclosure or other loan default situations. The SODA serves three primary purposes: subordination, nondisturbance, and attornment. Subordination means that the tenant agrees to subordinate its leasehold interest to the lender's mortgage or deed of trust, making the lender's lien on the property superior to the tenant's leasehold interest. Nondisturbance ensures that if the lender forecloses on the property, the tenant's rights and obligations under the lease will remain intact, and the lender will not disturb the tenant's possession, as long as the tenant is not in default. Attornment means that the tenant agrees to attorn to, or recognize, a new owner (the lender or a third-party purchaser) as the landlord under the terms of the existing lease. The Nevada SODA is customizable and can vary depending on the specific terms negotiated between the parties involved. However, there are generally two types of SODA commonly encountered. 1. Single-Tier SODA: This type of SODA involves only the landlord (lender) and the tenant. It establishes the subordination, nondisturbance, and attornment agreements between these two parties without the involvement of any other party, such as subtenants or other lien holders. It is primarily used when there is a single tenant occupying the commercial property. 2. Multi-Tier SODA: This variation of SODA is more complex and involves multiple parties. It incorporates the subordination, nondisturbance, and attornment agreements between the landlord (lender), the tenant, and other parties with an interest in the property, such as subtenants, contractors, or other lien holders. The multi-tier SODA ensures that all parties are aware of their rights and obligations, minimizing any potential conflicts or disruptions in case of default or foreclosure. SODA agreements are vital for tenants leasing commercial properties as they provide a sense of security and continuity, allowing businesses to operate without unnecessary interruptions. It is advisable for both landlords and tenants to consult a legal professional experienced in real estate law to draft or review the Nevada SODA, ensuring it adequately protects the interests of all parties involved.

A Nevada Subordination Nondisturbance and Attornment Agreement (SODA) refers to a legal document executed between the landlord (often a lender) and the tenant when a commercial property is subject to a mortgage or a deed of trust. This agreement ensures that the tenant's right to occupy the premises will be recognized by the lender in case of foreclosure or other loan default situations. The SODA serves three primary purposes: subordination, nondisturbance, and attornment. Subordination means that the tenant agrees to subordinate its leasehold interest to the lender's mortgage or deed of trust, making the lender's lien on the property superior to the tenant's leasehold interest. Nondisturbance ensures that if the lender forecloses on the property, the tenant's rights and obligations under the lease will remain intact, and the lender will not disturb the tenant's possession, as long as the tenant is not in default. Attornment means that the tenant agrees to attorn to, or recognize, a new owner (the lender or a third-party purchaser) as the landlord under the terms of the existing lease. The Nevada SODA is customizable and can vary depending on the specific terms negotiated between the parties involved. However, there are generally two types of SODA commonly encountered. 1. Single-Tier SODA: This type of SODA involves only the landlord (lender) and the tenant. It establishes the subordination, nondisturbance, and attornment agreements between these two parties without the involvement of any other party, such as subtenants or other lien holders. It is primarily used when there is a single tenant occupying the commercial property. 2. Multi-Tier SODA: This variation of SODA is more complex and involves multiple parties. It incorporates the subordination, nondisturbance, and attornment agreements between the landlord (lender), the tenant, and other parties with an interest in the property, such as subtenants, contractors, or other lien holders. The multi-tier SODA ensures that all parties are aware of their rights and obligations, minimizing any potential conflicts or disruptions in case of default or foreclosure. SODA agreements are vital for tenants leasing commercial properties as they provide a sense of security and continuity, allowing businesses to operate without unnecessary interruptions. It is advisable for both landlords and tenants to consult a legal professional experienced in real estate law to draft or review the Nevada SODA, ensuring it adequately protects the interests of all parties involved.