North Charleston South Carolina Subordination, Non-disturbance and Attornment Agreement

• Category: South Carolina Real Estate - Mortgages and Deeds of Trust
• State: South Carolina
• City: North Charleston
• Control #: SC-0445
• Format: Word; Rich Text

Description

This form is used by a commercial tenant, a commercial landlord, or a lender taking a mortgage against commercial property. A subordination, non-disturbance, and attornment agreement (SODA) is a legally binding document often used in commercial real estate transactions, specifically in North Charleston, South Carolina. This agreement addresses the rights and obligations of three parties: the tenant, the landlord, and the lender. The primary purpose of an SODA is to establish the priority of rights and obligations between these parties in the event of default, foreclosure, or lease termination. It ensures that the tenant's rights to occupy the property are protected, even if the landlord defaults on their loan or the property undergoes foreclosure. In North Charleston, South Carolina, there are two common types of SODA agreements: 1. Subordination Agreement: — A subordination agreement refers to the tenant's agreement to subordinate their leasehold interest to the lender's mortgage or deed of trust. This means that in the event of default or foreclosure, the lender's rights take precedence over the tenant's rights to the property. The tenant acknowledges that the lender has the authority to terminate the lease if necessary or become the landlord. 2. Non-Disturbance Agreement: — A non-disturbance agreement ensures that the tenant's rights and leasehold interest will not be disturbed or terminated in the event of default or foreclosure. The lender agrees not to disturb the tenant's possession or obligations under the lease, provided they remain in compliance. The tenant gains assurance that their lease will remain valid even if the landlord's property faces financial hardships. 3. Attornment Agreement: — An attornment agreement involves the tenant's recognition and acceptance of a new landlord who acquires the property through foreclosure or otherwise. It obliges the tenant to attorn and continue performing their lease obligations under the new ownership. The agreement solidifies the tenant's relationship with the new landlord, creating a direct privily of contract. Overall, a North Charleston, South Carolina SODA agreement is a crucial document that protects the tenant's leasehold interest in commercial real estate transactions. The agreement ensures that tenants can continue occupying the property without interruption, even during financial or legal disputes between the landlord and lender. The specific terms and conditions of an SODA agreement may vary depending on the parties involved and the negotiated terms.

A subordination, non-disturbance, and attornment agreement (SODA) is a legally binding document often used in commercial real estate transactions, specifically in North Charleston, South Carolina. This agreement addresses the rights and obligations of three parties: the tenant, the landlord, and the lender. The primary purpose of an SODA is to establish the priority of rights and obligations between these parties in the event of default, foreclosure, or lease termination. It ensures that the tenant's rights to occupy the property are protected, even if the landlord defaults on their loan or the property undergoes foreclosure. In North Charleston, South Carolina, there are two common types of SODA agreements: 1. Subordination Agreement: — A subordination agreement refers to the tenant's agreement to subordinate their leasehold interest to the lender's mortgage or deed of trust. This means that in the event of default or foreclosure, the lender's rights take precedence over the tenant's rights to the property. The tenant acknowledges that the lender has the authority to terminate the lease if necessary or become the landlord. 2. Non-Disturbance Agreement: — A non-disturbance agreement ensures that the tenant's rights and leasehold interest will not be disturbed or terminated in the event of default or foreclosure. The lender agrees not to disturb the tenant's possession or obligations under the lease, provided they remain in compliance. The tenant gains assurance that their lease will remain valid even if the landlord's property faces financial hardships. 3. Attornment Agreement: — An attornment agreement involves the tenant's recognition and acceptance of a new landlord who acquires the property through foreclosure or otherwise. It obliges the tenant to attorn and continue performing their lease obligations under the new ownership. The agreement solidifies the tenant's relationship with the new landlord, creating a direct privily of contract. Overall, a North Charleston, South Carolina SODA agreement is a crucial document that protects the tenant's leasehold interest in commercial real estate transactions. The agreement ensures that tenants can continue occupying the property without interruption, even during financial or legal disputes between the landlord and lender. The specific terms and conditions of an SODA agreement may vary depending on the parties involved and the negotiated terms.