Puerto Rico 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. A Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreement, also commonly referred to as an ND AESA, is a legal contract that provides certain protections to tenants and lenders in real estate transactions. This agreement is particularly important in situations where a property is subject to a mortgage or other form of financing. Non-Disturbance refers to the assurance given to the tenant that their rights to occupy the property will not be disturbed, even if there is a default by the landlord on their obligations to the lender. This means that the tenant can continue to use and occupy the property despite any potential foreclosure proceedings against the landlord. Attornment is a legal concept that requires the tenant to acknowledge and recognize a new landlord or lender in the event of a transfer of ownership or mortgage. In essence, the tenant agrees to continue their lease obligations and pay rent to the new landlord or lender. Estoppel refers to the principle that prevents a party from denying the truth of a specific statement or fact that they previously presented as true. In the context of an ND AESA, it prevents the tenant from denying the validity of the mortgage or any other agreements made between the landlord and lender. Subordination means that the tenant agrees that their leasehold interest in the property is subordinate or inferior to the rights of the lender. If there is a default on the mortgage, the lender has the right to foreclose and terminate the lease, without any liability to the tenant. There can be different types of Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreements, depending on the specific terms agreed upon by the parties involved. However, the core purpose of the agreement remains the same — to protect the interests of both the tenant and lender in real estate transactions. These agreements are commonly used in commercial real estate, especially when tenants are leasing space in properties that are subject to mortgages. By signing an ND AESA, both the tenant and lender can ensure that their rights and interests are safeguarded in the event of default or transfer of ownership. In summary, a Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreement is a vital legal document that provides security and protection for tenants and lenders in real estate transactions. Its main components include non-disturbance of the tenant's rights, attornment to new landlords or lenders, estoppel against denial of mortgage validity, and subordination of leasehold interests to the lender.

A Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreement, also commonly referred to as an ND AESA, is a legal contract that provides certain protections to tenants and lenders in real estate transactions. This agreement is particularly important in situations where a property is subject to a mortgage or other form of financing. Non-Disturbance refers to the assurance given to the tenant that their rights to occupy the property will not be disturbed, even if there is a default by the landlord on their obligations to the lender. This means that the tenant can continue to use and occupy the property despite any potential foreclosure proceedings against the landlord. Attornment is a legal concept that requires the tenant to acknowledge and recognize a new landlord or lender in the event of a transfer of ownership or mortgage. In essence, the tenant agrees to continue their lease obligations and pay rent to the new landlord or lender. Estoppel refers to the principle that prevents a party from denying the truth of a specific statement or fact that they previously presented as true. In the context of an ND AESA, it prevents the tenant from denying the validity of the mortgage or any other agreements made between the landlord and lender. Subordination means that the tenant agrees that their leasehold interest in the property is subordinate or inferior to the rights of the lender. If there is a default on the mortgage, the lender has the right to foreclose and terminate the lease, without any liability to the tenant. There can be different types of Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreements, depending on the specific terms agreed upon by the parties involved. However, the core purpose of the agreement remains the same — to protect the interests of both the tenant and lender in real estate transactions. These agreements are commonly used in commercial real estate, especially when tenants are leasing space in properties that are subject to mortgages. By signing an ND AESA, both the tenant and lender can ensure that their rights and interests are safeguarded in the event of default or transfer of ownership. In summary, a Puerto Rico Non-Disturbance, Attornment, Estoppel & Subordination Agreement is a vital legal document that provides security and protection for tenants and lenders in real estate transactions. Its main components include non-disturbance of the tenant's rights, attornment to new landlords or lenders, estoppel against denial of mortgage validity, and subordination of leasehold interests to the lender.