West Virginia 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 West Virginia Subordination Nondisturbance and Attornment Agreement (SODA) is a contractual document that outlines the rights and obligations between three parties involved in a real estate transaction: the landlord, tenant, and a third-party lender. The agreement defines the relationship between these parties in the event of a default or foreclosure on the property. In West Virginia, there are several types of Subordination Nondisturbance and Attornment Agreements applicable to different situations. These agreements include: 1. Commercial SODA: This agreement is typically used in commercial real estate transactions, where a commercial tenant leases space from a landlord who has mortgaged the property to a lender. The tenant agrees to subordinate its leasehold interest to the lender's mortgage, which means that in the event of foreclosure, the mortgage takes priority over the tenant's occupancy rights. 2. Residential SODA: This agreement is relevant to residential real estate transactions. It establishes the rights and responsibilities of the tenant, landlord, and lender in case of default or foreclosure. Similar to the commercial SODA, the tenant agrees to subordinate the leasehold interest to the lender's mortgage, ensuring the lender's priority in the event of foreclosure. 3. SODA for Ground Lease: In situations where the land is leased separately from the improvements on it, such as in a ground lease arrangement, this type of SODA is used. It sets forth the relationship between the landlord, tenant, and lender, addressing issues specific to ground leases. The West Virginia Subordination Nondisturbance and Attornment Agreement typically includes the following key provisions: a. Subordination Provision: This clause establishes the tenant's agreement to subordinate its rights under the lease to the lender's rights under the mortgage. b. Nondisturbance Provision: This provision stipulates that, as long as the tenant is not in default under the terms of the lease, the lender will not disturb the tenant's peaceful enjoyment of the premises in the event of foreclosure. c. Attornment Provision: This clause requires the tenant to recognize the lender as its new landlord in the event of foreclosure and comply with the terms and conditions of the lease under the new ownership. d. Notice Provision: It outlines how notices should be given by each party, ensuring effective communication between the landlord, tenant, and lender. e. Governing Law Provision: This section specifies that the agreement is governed by the laws of West Virginia, ensuring a legal framework for enforcement in case of any disputes. In summary, a West Virginia Subordination Nondisturbance and Attornment Agreement is a crucial legal document that clarifies the respective rights and obligations of the landlord, tenant, and lender in the event of default or foreclosure. Different types of Sodas exist to cater to the specific needs of commercial, residential, and ground lease transactions.

A West Virginia Subordination Nondisturbance and Attornment Agreement (SODA) is a contractual document that outlines the rights and obligations between three parties involved in a real estate transaction: the landlord, tenant, and a third-party lender. The agreement defines the relationship between these parties in the event of a default or foreclosure on the property. In West Virginia, there are several types of Subordination Nondisturbance and Attornment Agreements applicable to different situations. These agreements include: 1. Commercial SODA: This agreement is typically used in commercial real estate transactions, where a commercial tenant leases space from a landlord who has mortgaged the property to a lender. The tenant agrees to subordinate its leasehold interest to the lender's mortgage, which means that in the event of foreclosure, the mortgage takes priority over the tenant's occupancy rights. 2. Residential SODA: This agreement is relevant to residential real estate transactions. It establishes the rights and responsibilities of the tenant, landlord, and lender in case of default or foreclosure. Similar to the commercial SODA, the tenant agrees to subordinate the leasehold interest to the lender's mortgage, ensuring the lender's priority in the event of foreclosure. 3. SODA for Ground Lease: In situations where the land is leased separately from the improvements on it, such as in a ground lease arrangement, this type of SODA is used. It sets forth the relationship between the landlord, tenant, and lender, addressing issues specific to ground leases. The West Virginia Subordination Nondisturbance and Attornment Agreement typically includes the following key provisions: a. Subordination Provision: This clause establishes the tenant's agreement to subordinate its rights under the lease to the lender's rights under the mortgage. b. Nondisturbance Provision: This provision stipulates that, as long as the tenant is not in default under the terms of the lease, the lender will not disturb the tenant's peaceful enjoyment of the premises in the event of foreclosure. c. Attornment Provision: This clause requires the tenant to recognize the lender as its new landlord in the event of foreclosure and comply with the terms and conditions of the lease under the new ownership. d. Notice Provision: It outlines how notices should be given by each party, ensuring effective communication between the landlord, tenant, and lender. e. Governing Law Provision: This section specifies that the agreement is governed by the laws of West Virginia, ensuring a legal framework for enforcement in case of any disputes. In summary, a West Virginia Subordination Nondisturbance and Attornment Agreement is a crucial legal document that clarifies the respective rights and obligations of the landlord, tenant, and lender in the event of default or foreclosure. Different types of Sodas exist to cater to the specific needs of commercial, residential, and ground lease transactions.