Pennsylvania Non-Disturbance, Attornment, Estoppel & Subordination Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1053
• Format: Word; Rich Text

Description

This form is a nondisturbance, attornment, estoppel and subordination agreement.

Pennsylvania Non-Disturbance, Attornment, Estoppel & Subordination Agreement: A Comprehensive Overview Introduction: A Pennsylvania Non-Disturbance, Attornment, Estoppel & Subordination Agreement is a legal document commonly used in real estate transactions, especially in the context of commercial leases. It serves to protect the rights and interests of tenants, landlords, and lenders in situations where a property is subject to a mortgage or other financing arrangements. This agreement outlines the respective rights, obligations, and priorities of these parties in case of default, foreclosure, or any other event that may impact the property. Understanding the Components: 1. Non-Disturbance Clause: Under this clause, the lender agrees not to disturb the tenant's possession and quiet enjoyment of the property as long as the tenant fulfills its obligations under the lease. This provision is critical for tenants as it safeguards their rights even if the property goes through a foreclosure process. 2. Attornment Clause: The attornment clause states that the tenant will recognize and accept a new landlord or lender who acquires ownership of the property. This provision ensures that the tenant remains bound to the lease terms regardless of any change in property ownership. 3. Estoppel Certificate: An estoppel certificate is a document signed by the tenant, confirming certain facts about the lease agreement, such as rent payments, lease duration, and any related agreements. This certificate provides the lender with factual assurances and prevents the tenant from later claiming different terms from those specified in the document. 4. Subordination Clause: A subordination clause establishes the priority of different liens or claims on the property. It typically places the lender's mortgage or deed of trust in a superior position over the tenant's lease rights. This clause primarily protects the lender's interests and allows them to foreclose on the property, even if the lease term extends beyond the date of foreclosure. Types of Pennsylvania Non-Disturbance, Attornment, Estoppel & Subordination Agreements: 1. Commercial Lease Non-Disturbance Agreement: This type of agreement is commonly used when a commercial property is subject to a mortgage. It ensures the rights of the tenant are protected in case of default by the landlord or foreclosure on the property. 2. Tenant Subordination & Estoppel Agreement: This agreement is typically employed when a tenant is entering into a lease with knowledge of a pre-existing mortgage on the property. The tenant acknowledges the superior rights of the lender and agrees to subordinate its lease in favor of the lender's lien. 3. Multi-Party Non-Disturbance, Attornment, Estoppel & Subordination Agreement: In complex real estate transactions involving multiple tenants or lenders, a multi-party agreement may be necessary. This type of agreement ensures that all parties' rights and interests are appropriately addressed and protected vis-à-vis each other. Conclusion: A Pennsylvania Non-Disturbance, Attornment, Estoppel & Subordination Agreement is a crucial legal instrument in real estate transactions involving mortgaged properties. It establishes the rights and obligations of tenants, landlords, and lenders and protects their interests in the event of default, foreclosure, or other events. By ensuring all parties are aware of their rights and responsibilities, this agreement provides stability and clarity in complex real estate situations.