Wisconsin 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. A Subordination, Nondisturbance, and Attornment Agreement, commonly known as an SODA, is a legal document that outlines the rights and obligations between three parties involved in a real estate transaction. In Wisconsin, the SODA agreement is crucial to protect the interests of tenants, lenders, and landlords. The Subordination aspect of the agreement refers to the tenant's agreement to subordinate its leasehold interest to the lender's mortgage. This means that in the event of foreclosure, the lender's lien or mortgage would take priority over the tenant's lease. The purpose of subordination is to ensure that the lender has full rights and security over the property in case of default, which can provide more confidence to the lender when financing the property. The Nondisturbance clause is a crucial provision for tenants, as it ensures that their rights to possess and lease the property will not be disturbed, even if the property is foreclosed by the lender. This means that if the landlord defaults on the mortgage, the new owner (who is typically the lender) will recognize and honor the tenant's lease. Thus, the tenant can continue to occupy the premises and fulfill their lease obligations without interruption. Lastly, the Attornment clause requires the tenant to recognize the new owner as their landlord if the property is foreclosed. This means that the tenant agrees to attorn, or recognize and accept a new landlord, even in the event of foreclosure. In Wisconsin, the tenant's attornment can provide the lender with more confidence in the transaction by ensuring that the tenant will continue to pay rent and fulfill their lease obligations to the new owner. There are different types of Sample Subordination, Nondisturbance, and Attornment Agreements in Wisconsin, which can vary depending on the parties involved and their specific requirements. Some examples include: 1. Commercial Lease SODA: This type of agreement is between a commercial tenant, a lender, and the landlord. It ensures the tenant's lease rights are protected in case of foreclosure. 2. Residential Lease SODA: This agreement is specifically tailored to protect the rights of residential tenants in the event of foreclosure. 3. Subordination Agreement: This is a standalone document where a tenant agrees to subordinate their lease to a lender's lien or mortgage, without including the nondisturbance and attornment provisions. In conclusion, a Wisconsin Sample Subordination, Nondisturbance, and Attornment Agreement is a legally binding document that protects the interests of tenants, lenders, and landlords in a real estate transaction. The agreement ensures that the lender's mortgage takes priority over the tenant's lease, while also safeguarding the tenant's right to occupy the premises and recognizing the new owner as their landlord in case of foreclosure. It is essential for all parties involved in a real estate transaction to understand the importance of an SODA and seek legal advice when drafting or entering into such an agreement.

A Subordination, Nondisturbance, and Attornment Agreement, commonly known as an SODA, is a legal document that outlines the rights and obligations between three parties involved in a real estate transaction. In Wisconsin, the SODA agreement is crucial to protect the interests of tenants, lenders, and landlords. The Subordination aspect of the agreement refers to the tenant's agreement to subordinate its leasehold interest to the lender's mortgage. This means that in the event of foreclosure, the lender's lien or mortgage would take priority over the tenant's lease. The purpose of subordination is to ensure that the lender has full rights and security over the property in case of default, which can provide more confidence to the lender when financing the property. The Nondisturbance clause is a crucial provision for tenants, as it ensures that their rights to possess and lease the property will not be disturbed, even if the property is foreclosed by the lender. This means that if the landlord defaults on the mortgage, the new owner (who is typically the lender) will recognize and honor the tenant's lease. Thus, the tenant can continue to occupy the premises and fulfill their lease obligations without interruption. Lastly, the Attornment clause requires the tenant to recognize the new owner as their landlord if the property is foreclosed. This means that the tenant agrees to attorn, or recognize and accept a new landlord, even in the event of foreclosure. In Wisconsin, the tenant's attornment can provide the lender with more confidence in the transaction by ensuring that the tenant will continue to pay rent and fulfill their lease obligations to the new owner. There are different types of Sample Subordination, Nondisturbance, and Attornment Agreements in Wisconsin, which can vary depending on the parties involved and their specific requirements. Some examples include: 1. Commercial Lease SODA: This type of agreement is between a commercial tenant, a lender, and the landlord. It ensures the tenant's lease rights are protected in case of foreclosure. 2. Residential Lease SODA: This agreement is specifically tailored to protect the rights of residential tenants in the event of foreclosure. 3. Subordination Agreement: This is a standalone document where a tenant agrees to subordinate their lease to a lender's lien or mortgage, without including the nondisturbance and attornment provisions. In conclusion, a Wisconsin Sample Subordination, Nondisturbance, and Attornment Agreement is a legally binding document that protects the interests of tenants, lenders, and landlords in a real estate transaction. The agreement ensures that the lender's mortgage takes priority over the tenant's lease, while also safeguarding the tenant's right to occupy the premises and recognizing the new owner as their landlord in case of foreclosure. It is essential for all parties involved in a real estate transaction to understand the importance of an SODA and seek legal advice when drafting or entering into such an agreement.