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

• Category: South Carolina Real Estate - Contracts
• State: South Carolina
• City: North Charleston
• Control #: SC-804451
• Format: Word; Rich Text

Description

This document is three forms in one. The subordination part is where the lender's security interest becomes superior to the preexisting lease, and upon foreclosure by the lender, the title obtained by the purchaser at the foreclosure sale will be superior to the existing lease. The non-disturbance part of the agreement, the lender has agreed that upon acquiring title to the leased property through a foreclosure sale, that the lender, or any other purchaser at the sale, will "not disturb" the tenancy of the tenant, so long as the tenant is not in default, and that such tenancy will continue as if the foreclosure had never occurred. The "attornment" part of the agreement, is where the tenant is agreeing to acknowledge the purchaser at the foreclosure sale as the new landlord under the lease. North Charleston South Carolina Subordination, Non-disturbance and Attornment Agreement, also known as SODA, is a legal document that outlines the rights and obligations of parties involved in a real estate transaction, specifically between a tenant, landlord, and lender. This agreement ensures the protection of all parties' interests in case of a mortgage loan default, foreclosure, or transfer of ownership. In North Charleston, South Carolina, there are primarily two types of Subordination, Non-disturbance and Attornment Agreements: 1. Tenant SODA: A tenant SODA is typically entered into between a tenant, landlord, and lender. This agreement protects the tenant's right to occupy the leased premises even in the event of a foreclosure on the property. It acknowledges that the tenant's leasehold interest will be subordinate to the lender's interest but guarantees non-disturbance of the tenant's rights if the property is foreclosed. The agreement also ensures that the tenant attorns to the lender or any new owner, agreeing to recognize them as the new landlord. 2. Subordinate SODA: A subordinate SODA is commonly entered into between a landlord, tenant, and the lender of the landlord. This agreement acknowledges that the tenant's leasehold interest is subordinate to the landlord's mortgage interest. However, it ensures that the tenant's rights will not be disturbed in case of foreclosure. It also includes an attornment provision, obligating the tenant to attorn to the lender or any new landlord, recognizing them as the new owner of the property. This Subordination, Non-disturbance, and Attornment Agreements are crucial in real estate transactions as they protect the interests of tenants, landlords, and lenders. The agreement clearly defines the rights and responsibilities of each party, ensuring stability and continuity in leasehold arrangements, even during unforeseen circumstances such as foreclosure. It provides reassurance to tenants that their occupancy and lease terms will be respected, regardless of a change in property ownership. Similarly, lenders are assured that the tenant's rights will not hinder their ability to enforce their mortgage interest. Landlords benefit from maintaining lease agreements with tenants, even if a foreclosure occurs, thus preserving income streams and property value. In North Charleston, South Carolina, a Subordination, Non-disturbance, and Attornment Agreement can provide assurance and clarity for all parties involved in real estate transactions, minimizing potential disputes and ensuring the smooth continuation of lease agreements.

North Charleston South Carolina Subordination, Non-disturbance and Attornment Agreement, also known as SODA, is a legal document that outlines the rights and obligations of parties involved in a real estate transaction, specifically between a tenant, landlord, and lender. This agreement ensures the protection of all parties' interests in case of a mortgage loan default, foreclosure, or transfer of ownership. In North Charleston, South Carolina, there are primarily two types of Subordination, Non-disturbance and Attornment Agreements: 1. Tenant SODA: A tenant SODA is typically entered into between a tenant, landlord, and lender. This agreement protects the tenant's right to occupy the leased premises even in the event of a foreclosure on the property. It acknowledges that the tenant's leasehold interest will be subordinate to the lender's interest but guarantees non-disturbance of the tenant's rights if the property is foreclosed. The agreement also ensures that the tenant attorns to the lender or any new owner, agreeing to recognize them as the new landlord. 2. Subordinate SODA: A subordinate SODA is commonly entered into between a landlord, tenant, and the lender of the landlord. This agreement acknowledges that the tenant's leasehold interest is subordinate to the landlord's mortgage interest. However, it ensures that the tenant's rights will not be disturbed in case of foreclosure. It also includes an attornment provision, obligating the tenant to attorn to the lender or any new landlord, recognizing them as the new owner of the property. This Subordination, Non-disturbance, and Attornment Agreements are crucial in real estate transactions as they protect the interests of tenants, landlords, and lenders. The agreement clearly defines the rights and responsibilities of each party, ensuring stability and continuity in leasehold arrangements, even during unforeseen circumstances such as foreclosure. It provides reassurance to tenants that their occupancy and lease terms will be respected, regardless of a change in property ownership. Similarly, lenders are assured that the tenant's rights will not hinder their ability to enforce their mortgage interest. Landlords benefit from maintaining lease agreements with tenants, even if a foreclosure occurs, thus preserving income streams and property value. In North Charleston, South Carolina, a Subordination, Non-disturbance, and Attornment Agreement can provide assurance and clarity for all parties involved in real estate transactions, minimizing potential disputes and ensuring the smooth continuation of lease agreements.