Texas Sample Subordination, Nondisturbance and Attornment Agreement

• Category: Corporations - Public
• State: Multi-State
• Control #: US-EG-9472
• Format: Word; Rich Text

Description

Subordination, Non-Disturbance and Attornment Agreement between 233 Broadway Owners LLC, Organic and Lehman Brothers Holding, Inc. regarding assurances of possession of premises dated 00/99. 5 pages. Texas Sample Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of tenants, lenders, and landlords in commercial real estate transactions. This agreement is commonly used in Texas to protect the interests of all parties involved in a property lease or loan. The purpose of an SODA is to establish the priority of interests and to ensure that tenants can remain in the leased premises, even if the landlord defaults on their mortgage payments or the property is foreclosed. This document typically consists of the following three provisions: 1. Subordination: The subordination clause establishes that the tenant's rights and leasehold interest in the property are subordinate to the rights and interests of the lender. In other words, if the lender forecloses on the property, the tenant acknowledges that their leasehold interest is lesser in priority compared to the lender's mortgage interest. 2. Nondisturbance: The nondisturbance clause ensures that if a lender forecloses on the property, the tenant's lease will not be terminated, and the new owner (the lender or a third party) will recognize and honor the existing lease terms. This provision protects the tenant from being forced to vacate the premises due to a change in ownership. 3. Attornment: The attornment clause requires the tenant to recognize and accept the new owner (the lender or a third party) as the landlord in case of foreclosure or transfer of ownership. The tenant agrees to attorn to the new owner and continue paying rent and performing all obligations outlined in the lease agreement. There are different types of Texas Sample Subordination, Nondisturbance, and Attornment Agreements depending on the parties involved and the specific terms and conditions agreed upon. For instance: 1. Tenant SODA: This type of agreement is entered into between the tenant, the landlord, and the lender. It protects the tenant's rights in case of foreclosure and ensures continuity of their lease regardless of a change in ownership. 2. Lender SODA: This agreement is entered into between the lender and the landlord. It ensures that the lender's mortgage takes priority over the tenant's leasehold interest, and that the lender will recognize and honor the existing lease upon foreclosure. 3. Landlord SODA: This type of agreement is entered into between the landlord and the lender. It typically addresses the leasehold interests of the tenant, assuring the lender that the tenant has agreed to subordinate their rights to the lender's interests. In summary, a Texas Sample Subordination, Nondisturbance, and Attornment Agreement is a crucial legal document used in commercial real estate transactions to protect the rights of tenants, lenders, and landlords. It establishes the priority of interests, ensures continuity of leases in case of foreclosure, and requires the tenant to recognize and accept a new owner. Different versions of the agreement exist depending on the parties involved.

Texas Sample Subordination, Nondisturbance, and Attornment Agreement (SODA) is a legal document that outlines the rights and obligations of tenants, lenders, and landlords in commercial real estate transactions. This agreement is commonly used in Texas to protect the interests of all parties involved in a property lease or loan. The purpose of an SODA is to establish the priority of interests and to ensure that tenants can remain in the leased premises, even if the landlord defaults on their mortgage payments or the property is foreclosed. This document typically consists of the following three provisions: 1. Subordination: The subordination clause establishes that the tenant's rights and leasehold interest in the property are subordinate to the rights and interests of the lender. In other words, if the lender forecloses on the property, the tenant acknowledges that their leasehold interest is lesser in priority compared to the lender's mortgage interest. 2. Nondisturbance: The nondisturbance clause ensures that if a lender forecloses on the property, the tenant's lease will not be terminated, and the new owner (the lender or a third party) will recognize and honor the existing lease terms. This provision protects the tenant from being forced to vacate the premises due to a change in ownership. 3. Attornment: The attornment clause requires the tenant to recognize and accept the new owner (the lender or a third party) as the landlord in case of foreclosure or transfer of ownership. The tenant agrees to attorn to the new owner and continue paying rent and performing all obligations outlined in the lease agreement. There are different types of Texas Sample Subordination, Nondisturbance, and Attornment Agreements depending on the parties involved and the specific terms and conditions agreed upon. For instance: 1. Tenant SODA: This type of agreement is entered into between the tenant, the landlord, and the lender. It protects the tenant's rights in case of foreclosure and ensures continuity of their lease regardless of a change in ownership. 2. Lender SODA: This agreement is entered into between the lender and the landlord. It ensures that the lender's mortgage takes priority over the tenant's leasehold interest, and that the lender will recognize and honor the existing lease upon foreclosure. 3. Landlord SODA: This type of agreement is entered into between the landlord and the lender. It typically addresses the leasehold interests of the tenant, assuring the lender that the tenant has agreed to subordinate their rights to the lender's interests. In summary, a Texas Sample Subordination, Nondisturbance, and Attornment Agreement is a crucial legal document used in commercial real estate transactions to protect the rights of tenants, lenders, and landlords. It establishes the priority of interests, ensures continuity of leases in case of foreclosure, and requires the tenant to recognize and accept a new owner. Different versions of the agreement exist depending on the parties involved.