Orange California Subordination Nondisturbance and Attornment Agreement

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

Description

Subordination Nondisturbance and Attornment Agreement Orange, California Subordination Nondisturbance and Attornment Agreement (SN DAA) is a legal document that outlines the terms and conditions between a tenant, a landlord, and a lender in the context of a commercial property. This agreement is crucial when the tenant's lease is subject to a mortgage, as it establishes the rights and obligations of all parties involved. In an SN DAA, "subordination" refers to the tenant's agreement that their lease will be secondary to any mortgage taken out by the landlord. This means that if the landlord defaults on their mortgage, the lender has the right to foreclose on the property, and the tenant's lease may be terminated. The tenant acknowledges this risk and accepts it by signing the agreement. The term "nondisturbance" signifies the tenant's protection against any disturbance to their occupancy rights in the event of foreclosure. Under the SN DAA, the lender agrees not to disturb the tenant's possession of the premises, as long as the tenant is not in default of their lease. This provision ensures that the tenant can continue to operate their business undisturbed, even if the property changes ownership through foreclosure. Furthermore, "attornment" pertains to the tenant's obligation to recognize and attorn to a new landlord, usually the lender who takes ownership through foreclosure. Attornment means that the tenant agrees to accept and recognize the new owner as their landlord, paying rent and abiding by the terms of the lease. This clause prevents the tenant from disputing their lease obligations with the new landlord. It's important to note that there can be different types of SN DAA agreements, tailored to the specific circumstances of the Orange, California market. For example, lease agreements in retail, office, or industrial properties may have specific clauses that cater to their respective industries. Therefore, the SN DAA can be customized to accommodate the unique needs of the parties involved and the nature of the property. In summary, the Orange, California Subordination Nondisturbance and Attornment Agreement is a vital legal document that governs the relationship between tenants, landlords, and lenders in commercial real estate transactions. By understanding and signing this agreement, tenants protect their occupancy rights in case of foreclosure, while lenders secure their interests in the property.

Orange, California Subordination Nondisturbance and Attornment Agreement (SN DAA) is a legal document that outlines the terms and conditions between a tenant, a landlord, and a lender in the context of a commercial property. This agreement is crucial when the tenant's lease is subject to a mortgage, as it establishes the rights and obligations of all parties involved. In an SN DAA, "subordination" refers to the tenant's agreement that their lease will be secondary to any mortgage taken out by the landlord. This means that if the landlord defaults on their mortgage, the lender has the right to foreclose on the property, and the tenant's lease may be terminated. The tenant acknowledges this risk and accepts it by signing the agreement. The term "nondisturbance" signifies the tenant's protection against any disturbance to their occupancy rights in the event of foreclosure. Under the SN DAA, the lender agrees not to disturb the tenant's possession of the premises, as long as the tenant is not in default of their lease. This provision ensures that the tenant can continue to operate their business undisturbed, even if the property changes ownership through foreclosure. Furthermore, "attornment" pertains to the tenant's obligation to recognize and attorn to a new landlord, usually the lender who takes ownership through foreclosure. Attornment means that the tenant agrees to accept and recognize the new owner as their landlord, paying rent and abiding by the terms of the lease. This clause prevents the tenant from disputing their lease obligations with the new landlord. It's important to note that there can be different types of SN DAA agreements, tailored to the specific circumstances of the Orange, California market. For example, lease agreements in retail, office, or industrial properties may have specific clauses that cater to their respective industries. Therefore, the SN DAA can be customized to accommodate the unique needs of the parties involved and the nature of the property. In summary, the Orange, California Subordination Nondisturbance and Attornment Agreement is a vital legal document that governs the relationship between tenants, landlords, and lenders in commercial real estate transactions. By understanding and signing this agreement, tenants protect their occupancy rights in case of foreclosure, while lenders secure their interests in the property.