South Carolina 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. A South Carolina Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document commonly used in commercial real estate transactions. It establishes the rights and responsibilities of three parties: the lender, the landlord/property owner, and the tenant. This agreement ensures that all parties are protected in case of default, foreclosure, or the transfer of ownership. Keywords: South Carolina, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan There are two main types of SODA agreements commonly used in South Carolina Commercial Loan situations: 1. Subordination Agreement: A Subordination Agreement states that the tenant's leasehold interest is subordinate (secondary) to the lender's mortgage or deed of trust. In simpler terms, the lender has a higher priority claim on the property than the tenant in case of foreclosure. The tenant acknowledges that they will not object or challenge the lender's interest in the property. 2. Non-Disturbance Agreement: The Non-Disturbance Agreement ensures that the tenant's rights under a lease will remain protected even if the property is foreclosed upon or transferred to a new owner. It grants the tenant the right to continue occupying the property and fulfilling its lease obligations, regardless of any changes in property ownership. 3. Attornment Agreement: An Attornment Agreement is also included in this document. It establishes that the tenant will recognize and accept a new landlord or owner if the property is sold or transferred to a third party. It requires the tenant to attorn (acknowledge) the new owner as their new landlord and continue paying rent and complying with the lease terms. The purpose of these agreements is to protect the interests of all parties involved. Lenders secure their claims on the property, landlords ensure that their tenants' rights are respected even in the event of foreclosure, and tenants gain reassurance that their leaseholds will be recognized under new ownership. In conclusion, a South Carolina Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan establishes the relationship and priorities between the lender, landlord, and tenant. It provides security for all parties involved in commercial real estate transactions.

A South Carolina Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document commonly used in commercial real estate transactions. It establishes the rights and responsibilities of three parties: the lender, the landlord/property owner, and the tenant. This agreement ensures that all parties are protected in case of default, foreclosure, or the transfer of ownership. Keywords: South Carolina, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan There are two main types of SODA agreements commonly used in South Carolina Commercial Loan situations: 1. Subordination Agreement: A Subordination Agreement states that the tenant's leasehold interest is subordinate (secondary) to the lender's mortgage or deed of trust. In simpler terms, the lender has a higher priority claim on the property than the tenant in case of foreclosure. The tenant acknowledges that they will not object or challenge the lender's interest in the property. 2. Non-Disturbance Agreement: The Non-Disturbance Agreement ensures that the tenant's rights under a lease will remain protected even if the property is foreclosed upon or transferred to a new owner. It grants the tenant the right to continue occupying the property and fulfilling its lease obligations, regardless of any changes in property ownership. 3. Attornment Agreement: An Attornment Agreement is also included in this document. It establishes that the tenant will recognize and accept a new landlord or owner if the property is sold or transferred to a third party. It requires the tenant to attorn (acknowledge) the new owner as their new landlord and continue paying rent and complying with the lease terms. The purpose of these agreements is to protect the interests of all parties involved. Lenders secure their claims on the property, landlords ensure that their tenants' rights are respected even in the event of foreclosure, and tenants gain reassurance that their leaseholds will be recognized under new ownership. In conclusion, a South Carolina Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan establishes the relationship and priorities between the lender, landlord, and tenant. It provides security for all parties involved in commercial real estate transactions.