Texas 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. A Texas Non-Disturbance and Attornment Agreement is a legal document that outlines the relationship between a tenant, landlord, and a lender in a commercial real estate context. This agreement is aimed at protecting the tenant's rights in the event of a foreclosure, ensuring continued occupancy and the non-disturbance of the tenant's lease rights by the lender. It provides security to the tenant that their lease will be recognized and honored by the lender even after a change in ownership due to foreclosure. In Texas, there are primarily two types of Non-Disturbance and Attornment Agreements, including: 1. Tenant Non-Disturbance Agreement: A Tenant Non-Disturbance Agreement is typically executed between the tenant and the lender. It ensures that if the landlord defaults on their mortgage and the property is foreclosed upon, the lender will recognize and respect the tenant's lease agreement. This agreement allows the tenant to continue occupying the premises and fulfilling their obligations under the lease without any disturbance from the lender. 2. Subordination, Non-Disturbance, and Attornment Agreement (SNDA): SNDA is a more comprehensive agreement that involves three parties: the tenant, the landlord, and the lender. It consists of three key provisions: - Subordination: This provision acknowledges that the tenant's lease is subject to the lender's mortgage. It means that the lender's lien takes priority over the tenant's lease, but this provision does not automatically terminate the lease upon foreclosure. Instead, it allows the lender to foreclose and take title to the property while recognizing the tenant's continuing rights. - Non-Disturbance: The non-disturbance provision ensures that the lender will not disturb or terminate the tenant's lease in the event of foreclosure. The lender agrees to honor the terms and conditions of the lease, allowing the tenant to continue operating their business without any disruption. - Attornment: The attornment provision requires the tenant to recognize the lender as their new landlord in case of foreclosure. It establishes a direct landlord-tenant relationship between the lender and the tenant from the date of foreclosure. The tenant is obligated to attorn to the new landlord and fulfill all lease obligations as originally contracted. These agreements are crucial in commercial real estate transactions as they provide security to tenants by ensuring their rights and interests are protected, even in the event of foreclosure. It gives tenants the assurance that their occupancy and lease agreement will be respected, preventing any unnecessary disruption to their business operations.

A Texas Non-Disturbance and Attornment Agreement is a legal document that outlines the relationship between a tenant, landlord, and a lender in a commercial real estate context. This agreement is aimed at protecting the tenant's rights in the event of a foreclosure, ensuring continued occupancy and the non-disturbance of the tenant's lease rights by the lender. It provides security to the tenant that their lease will be recognized and honored by the lender even after a change in ownership due to foreclosure. In Texas, there are primarily two types of Non-Disturbance and Attornment Agreements, including: 1. Tenant Non-Disturbance Agreement: A Tenant Non-Disturbance Agreement is typically executed between the tenant and the lender. It ensures that if the landlord defaults on their mortgage and the property is foreclosed upon, the lender will recognize and respect the tenant's lease agreement. This agreement allows the tenant to continue occupying the premises and fulfilling their obligations under the lease without any disturbance from the lender. 2. Subordination, Non-Disturbance, and Attornment Agreement (SNDA): SNDA is a more comprehensive agreement that involves three parties: the tenant, the landlord, and the lender. It consists of three key provisions: - Subordination: This provision acknowledges that the tenant's lease is subject to the lender's mortgage. It means that the lender's lien takes priority over the tenant's lease, but this provision does not automatically terminate the lease upon foreclosure. Instead, it allows the lender to foreclose and take title to the property while recognizing the tenant's continuing rights. - Non-Disturbance: The non-disturbance provision ensures that the lender will not disturb or terminate the tenant's lease in the event of foreclosure. The lender agrees to honor the terms and conditions of the lease, allowing the tenant to continue operating their business without any disruption. - Attornment: The attornment provision requires the tenant to recognize the lender as their new landlord in case of foreclosure. It establishes a direct landlord-tenant relationship between the lender and the tenant from the date of foreclosure. The tenant is obligated to attorn to the new landlord and fulfill all lease obligations as originally contracted. These agreements are crucial in commercial real estate transactions as they provide security to tenants by ensuring their rights and interests are protected, even in the event of foreclosure. It gives tenants the assurance that their occupancy and lease agreement will be respected, preventing any unnecessary disruption to their business operations.