Fulton Georgia Subordination Nondisturbance and Attornment Agreement

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

Description

Subordination Nondisturbance and Attornment Agreement Fulton Georgia Subordination Nondisturbance and Attornment Agreement, also known as SODA, is a legal document that outlines the relationship between a lender, landlord, and tenant in the context of a commercial real estate property located in Fulton County, Georgia. This agreement is usually executed when a tenant leases a property from a landlord that has a mortgage on the property or when a lender is refinancing an existing loan secured by the property. The purpose of the Fulton Georgia SODA is to protect the rights of the tenant in the event of default or foreclosure on the landlord's mortgage. It establishes a hierarchical order of rights and priorities among the lender, landlord, and tenant. The "subordination" aspect of the SODA refers to the tenant's agreement to subordinate their leasehold interest to the lender's mortgage. This means that the lender's mortgage takes priority over the tenant's lease in case of foreclosure. By agreeing to this subordination, the tenant acknowledges that the lender has the right to terminate the lease if the property goes into foreclosure. The "nondisturbance" part of the SODA ensures that if the property is foreclosed upon and the tenant is not in default under their lease, the tenant's rights will not be disturbed by the lender or any subsequent owner of the property. The tenant will be allowed to continue occupying the premises and fulfill their obligations under the lease. The "attornment" provision in the SODA refers to the tenant's agreement to recognize and attorn to a new landlord in the event of foreclosure or transfer of ownership. This means that the tenant agrees to accept and recognize the lender or a new owner of the property as their landlord, assuming that the new entity agrees to honor the tenant's lease and other obligations. It is important to note that different types or variations of Subordination Nondisturbance and Attornment Agreements may exist, depending on the specific terms and conditions negotiated between the parties involved. For example, specific provisions and language may vary based on whether the SODA is executed as part of a lease agreement or in the context of a loan refinancing. In summary, the Fulton Georgia Subordination Nondisturbance and Attornment Agreement is a crucial legal document that protects the tenant's rights when leasing a property with an existing mortgage. It establishes the priority of interests among the lender, landlord, and tenant, ensures the tenant's rights are not disturbed in case of foreclosure, and obligates the tenant to recognize a new landlord in the event of ownership transfer.

Fulton Georgia Subordination Nondisturbance and Attornment Agreement, also known as SODA, is a legal document that outlines the relationship between a lender, landlord, and tenant in the context of a commercial real estate property located in Fulton County, Georgia. This agreement is usually executed when a tenant leases a property from a landlord that has a mortgage on the property or when a lender is refinancing an existing loan secured by the property. The purpose of the Fulton Georgia SODA is to protect the rights of the tenant in the event of default or foreclosure on the landlord's mortgage. It establishes a hierarchical order of rights and priorities among the lender, landlord, and tenant. The "subordination" aspect of the SODA refers to the tenant's agreement to subordinate their leasehold interest to the lender's mortgage. This means that the lender's mortgage takes priority over the tenant's lease in case of foreclosure. By agreeing to this subordination, the tenant acknowledges that the lender has the right to terminate the lease if the property goes into foreclosure. The "nondisturbance" part of the SODA ensures that if the property is foreclosed upon and the tenant is not in default under their lease, the tenant's rights will not be disturbed by the lender or any subsequent owner of the property. The tenant will be allowed to continue occupying the premises and fulfill their obligations under the lease. The "attornment" provision in the SODA refers to the tenant's agreement to recognize and attorn to a new landlord in the event of foreclosure or transfer of ownership. This means that the tenant agrees to accept and recognize the lender or a new owner of the property as their landlord, assuming that the new entity agrees to honor the tenant's lease and other obligations. It is important to note that different types or variations of Subordination Nondisturbance and Attornment Agreements may exist, depending on the specific terms and conditions negotiated between the parties involved. For example, specific provisions and language may vary based on whether the SODA is executed as part of a lease agreement or in the context of a loan refinancing. In summary, the Fulton Georgia Subordination Nondisturbance and Attornment Agreement is a crucial legal document that protects the tenant's rights when leasing a property with an existing mortgage. It establishes the priority of interests among the lender, landlord, and tenant, ensures the tenant's rights are not disturbed in case of foreclosure, and obligates the tenant to recognize a new landlord in the event of ownership transfer.