Wisconsin Subordination Nondisturbance and Attornment Agreement

• Category: Landlord Tenant - Subordination
• State: Multi-State
• Control #: US-0734-WG
• Format: Word; Rich Text

Description

Subordination Nondisturbance and Attornment Agreement A Wisconsin Subordination Nondisturbance and Attornment Agreement, commonly referred to as SODA, is a legal document that outlines and regulates the relationship between a lender, tenant, and landlord in the context of a leased property. In a commercial real estate transaction, when a lender provides a mortgage loan to the landlord of a property, they want to ensure their interests are protected, even if the property is leased to a tenant. This is where the Wisconsin Subordination Nondisturbance and Attornment Agreement comes into play. The agreement typically consists of three main components: subordination, nondisturbance, and attornment. 1. Subordination: The subordination clause establishes the lender's priority over the tenant's rights. In the event of default or foreclosure, the lender's rights would take precedence over the tenant's leasehold interest. This means that the lender has the power to terminate the lease or assume the role of the landlord if necessary. By signing the agreement, the tenant agrees to subordinate their rights to the lender. 2. Nondisturbance: The nondisturbance clause protects the tenant's rights to remain in possession of the leased premises, even if the landlord defaults on their mortgage or undergoes foreclosure. The lender agrees that, as long as the tenant is in compliance with the lease terms, the lender will not disturb the tenant's possession or terminate the lease. This provision gives the tenant peace of mind, ensuring that their business operations can continue without interruption. 3. Attornment: The attornment clause establishes the tenant's obligation to recognize and attorn to the lender as the new landlord in the event that the lender assumes ownership of the property through foreclosure or other means. It ensures that the tenant acknowledges the lender as their new landlord and agrees to continue paying rent and complying with lease terms despite the change in ownership. It's important to note that in Wisconsin, there isn't a special term or specific variations of the Subordination Nondisturbance and Attornment Agreement. However, different types of properties, such as commercial, retail, or industrial, may require tailored versions of the agreement to address specific provisions unique to their industry or location. These tailored agreements may vary in length and complexity to address various aspects of the property lease. Overall, a Wisconsin Subordination Nondisturbance and Attornment Agreement is a critical legal tool that protects the rights and interests of lenders, landlords, and tenants in commercial real estate transactions. It ensures that all parties involved are aware of their obligations and rights in the event of default or foreclosure, providing stability and security to both lenders and tenants.

A Wisconsin Subordination Nondisturbance and Attornment Agreement, commonly referred to as SODA, is a legal document that outlines and regulates the relationship between a lender, tenant, and landlord in the context of a leased property. In a commercial real estate transaction, when a lender provides a mortgage loan to the landlord of a property, they want to ensure their interests are protected, even if the property is leased to a tenant. This is where the Wisconsin Subordination Nondisturbance and Attornment Agreement comes into play. The agreement typically consists of three main components: subordination, nondisturbance, and attornment. 1. Subordination: The subordination clause establishes the lender's priority over the tenant's rights. In the event of default or foreclosure, the lender's rights would take precedence over the tenant's leasehold interest. This means that the lender has the power to terminate the lease or assume the role of the landlord if necessary. By signing the agreement, the tenant agrees to subordinate their rights to the lender. 2. Nondisturbance: The nondisturbance clause protects the tenant's rights to remain in possession of the leased premises, even if the landlord defaults on their mortgage or undergoes foreclosure. The lender agrees that, as long as the tenant is in compliance with the lease terms, the lender will not disturb the tenant's possession or terminate the lease. This provision gives the tenant peace of mind, ensuring that their business operations can continue without interruption. 3. Attornment: The attornment clause establishes the tenant's obligation to recognize and attorn to the lender as the new landlord in the event that the lender assumes ownership of the property through foreclosure or other means. It ensures that the tenant acknowledges the lender as their new landlord and agrees to continue paying rent and complying with lease terms despite the change in ownership. It's important to note that in Wisconsin, there isn't a special term or specific variations of the Subordination Nondisturbance and Attornment Agreement. However, different types of properties, such as commercial, retail, or industrial, may require tailored versions of the agreement to address specific provisions unique to their industry or location. These tailored agreements may vary in length and complexity to address various aspects of the property lease. Overall, a Wisconsin Subordination Nondisturbance and Attornment Agreement is a critical legal tool that protects the rights and interests of lenders, landlords, and tenants in commercial real estate transactions. It ensures that all parties involved are aware of their obligations and rights in the event of default or foreclosure, providing stability and security to both lenders and tenants.