Phoenix Arizona Subordination Nondisturbance and Attornment Agreement

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

Description

Subordination Nondisturbance and Attornment Agreement A Phoenix Arizona Subordination Nondisturbance and Attornment Agreement (SODA) is a legal contract that establishes the rights and obligations between different parties in a real estate transaction. It typically involves a tenant, a lender, and a landlord in a commercial property. In the context of commercial real estate, a subordination clause refers to a provision in an SODA that establishes the priority of liens or claims on a property. Essentially, it determines the order in which different parties will be repaid in case of default or foreclosure. The subordination agreement allows the lender to maintain its priority lien position over the tenant's leasehold interest, meaning that the lender's claim on the property takes precedence over the tenant's rights. Under the Nondisturbance clause of an SODA, the tenant agrees that in the event of default or foreclosure by the landlord, the tenant's leasehold interest will remain in effect. This provision ensures that the tenant's rights are protected even if the landlord's ownership of the property changes hands. The tenant will be allowed to continue occupying the premises and fulfilling its lease obligations without any disturbance. Lastly, the Attornment clause in an SODA refers to the tenant's agreement to recognize a new landlord if the property is sold or if the ownership changes. It requires the tenant to accept the new landlord as the rightful owner of the property and continue to fulfill all lease obligations with the new owner. Different types of Phoenix Arizona Subordination Nondisturbance and Attornment Agreements can vary based on the specific terms and parties involved. For example, there can be SODA agreements for various types of commercial properties such as office buildings, retail spaces, or warehouses. The terms and conditions of an SODA will be tailored to the unique circumstances of each specific transaction.

A Phoenix Arizona Subordination Nondisturbance and Attornment Agreement (SODA) is a legal contract that establishes the rights and obligations between different parties in a real estate transaction. It typically involves a tenant, a lender, and a landlord in a commercial property. In the context of commercial real estate, a subordination clause refers to a provision in an SODA that establishes the priority of liens or claims on a property. Essentially, it determines the order in which different parties will be repaid in case of default or foreclosure. The subordination agreement allows the lender to maintain its priority lien position over the tenant's leasehold interest, meaning that the lender's claim on the property takes precedence over the tenant's rights. Under the Nondisturbance clause of an SODA, the tenant agrees that in the event of default or foreclosure by the landlord, the tenant's leasehold interest will remain in effect. This provision ensures that the tenant's rights are protected even if the landlord's ownership of the property changes hands. The tenant will be allowed to continue occupying the premises and fulfilling its lease obligations without any disturbance. Lastly, the Attornment clause in an SODA refers to the tenant's agreement to recognize a new landlord if the property is sold or if the ownership changes. It requires the tenant to accept the new landlord as the rightful owner of the property and continue to fulfill all lease obligations with the new owner. Different types of Phoenix Arizona Subordination Nondisturbance and Attornment Agreements can vary based on the specific terms and parties involved. For example, there can be SODA agreements for various types of commercial properties such as office buildings, retail spaces, or warehouses. The terms and conditions of an SODA will be tailored to the unique circumstances of each specific transaction.