Puerto Rico Non-Disturbance and Attornment Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1052
• Format: Word; Rich Text

Description

This form is a nondisturbance and attornment agreement. The Puerto Rico Non-Disturbance and Attornment Agreement, also known as PRNDAA, is a legal document that establishes the rights, responsibilities, and protections of tenants in the event of a foreclosure or change of ownership of a property in Puerto Rico. This agreement is commonly used in commercial real estate transactions, providing security to tenants by ensuring their lease agreements will be respected even if the property changes hands. Under the PRNDAA, a tenant acknowledges the lender's right to foreclose on the property in case of default by the borrower. In return, the lender agrees to recognize and honor the tenant's lease, protecting their occupancy and rental terms. This agreement gives tenants the assurance that they will not be immediately evicted or face disruptions to their business activities due to the property's foreclosure. With a non-disturbance provision, the tenant's lease is immune to termination by the lender, safeguarding their rights and interests. Additionally, the agreement includes the attornment clause, wherein the tenant agrees to recognize the new property owner, usually the lender, as their landlord. This clause helps facilitate a smooth transition of the lease agreement to the new owner without adversely affecting the tenant. Different types of Puerto Rico Non-Disturbance and Attornment Agreements may vary based on the parties involved, specific terms and conditions, and the property type. For instance, there may be PRNDAA variations for commercial properties, residential properties, or mixed-use developments. The content and clauses within the Puerto Rico Non-Disturbance and Attornment Agreement may be tailored to suit the specific needs and intricacies of each type of property or transaction. In summary, the Puerto Rico Non-Disturbance and Attornment Agreement is a crucial legal instrument that protects tenants' lease rights and ensures business continuity in the face of property foreclosure or change of ownership. By acknowledging the lender's rights, tenants gain the assurance that their leases will be honored under the new ownership, fostering stability and peace of mind for both tenants and lenders.

The Puerto Rico Non-Disturbance and Attornment Agreement, also known as PRNDAA, is a legal document that establishes the rights, responsibilities, and protections of tenants in the event of a foreclosure or change of ownership of a property in Puerto Rico. This agreement is commonly used in commercial real estate transactions, providing security to tenants by ensuring their lease agreements will be respected even if the property changes hands. Under the PRNDAA, a tenant acknowledges the lender's right to foreclose on the property in case of default by the borrower. In return, the lender agrees to recognize and honor the tenant's lease, protecting their occupancy and rental terms. This agreement gives tenants the assurance that they will not be immediately evicted or face disruptions to their business activities due to the property's foreclosure. With a non-disturbance provision, the tenant's lease is immune to termination by the lender, safeguarding their rights and interests. Additionally, the agreement includes the attornment clause, wherein the tenant agrees to recognize the new property owner, usually the lender, as their landlord. This clause helps facilitate a smooth transition of the lease agreement to the new owner without adversely affecting the tenant. Different types of Puerto Rico Non-Disturbance and Attornment Agreements may vary based on the parties involved, specific terms and conditions, and the property type. For instance, there may be PRNDAA variations for commercial properties, residential properties, or mixed-use developments. The content and clauses within the Puerto Rico Non-Disturbance and Attornment Agreement may be tailored to suit the specific needs and intricacies of each type of property or transaction. In summary, the Puerto Rico Non-Disturbance and Attornment Agreement is a crucial legal instrument that protects tenants' lease rights and ensures business continuity in the face of property foreclosure or change of ownership. By acknowledging the lender's rights, tenants gain the assurance that their leases will be honored under the new ownership, fostering stability and peace of mind for both tenants and lenders.