Fairfax Virginia Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• County: Fairfax
• Control #: US-1176BG
• Format: Word; Rich Text

Description

The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure. Fairfax, Virginia Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document commonly used in commercial real estate transactions involving a commercial loan. SODA agreements protect both the lender and the tenant in case of default or foreclosure on the property. In basic terms, the Subordination clause states that the tenant's leasehold interest is subordinate to the lender's mortgage or deed of trust. This means that if the property is foreclosed, the lender's interest will take priority over the tenant's leasehold interest. The Non-Disturbance clause guarantees the tenant that, as long as they are not in default of their lease agreement, their tenancy will not be disturbed by the lender's actions. The lender agrees not to terminate the lease or disrupt the tenant's rights and leasehold improvements, even in the event of foreclosure. Lastly, the Attornment clause requires the tenant to recognize and accept a new landlord, typically the lender or purchaser of the property through foreclosure, as the successor landlord. This ensures that the tenant continues to pay rent and comply with the lease terms, regardless of any change in ownership. Apart from the standard Fairfax, Virginia SODA agreement, there can be variations based on the specific terms and conditions negotiated between the parties involved. Some common types include: 1. Limited Subordination: This type of SODA agreement allows for the subordination of the tenant's interest, but with certain limitations or conditions mentioned. These limitations could include time frames, specific tenant rights, or when certain events occur. 2. SODA with Lease and Condition Modification: In some cases, the SODA agreement may include modifications to the original lease terms and conditions. These modifications can cover changes in rental rates, renewal options, or adjustments to any existing obligations. 3. Subordination, Non-Disturbance, and Attornment Agreement with Additional Conditions: This type of SODA agreement may include additional conditions or provisions to address specific concerns or requirements of either the lender or the tenant. These conditions could cover factors such as tenant improvements, rent abatement, or any other mutually agreed-upon considerations. It is essential for both parties, the lender, and the tenant, to thoroughly review and understand the terms of the Fairfax, Virginia SODA agreement specific to their transaction. Seeking legal advice from an experienced commercial real estate attorney can help ensure the agreement aligns with their respective interests and protects their rights in the event of foreclosure or default.

Fairfax, Virginia Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document commonly used in commercial real estate transactions involving a commercial loan. SODA agreements protect both the lender and the tenant in case of default or foreclosure on the property. In basic terms, the Subordination clause states that the tenant's leasehold interest is subordinate to the lender's mortgage or deed of trust. This means that if the property is foreclosed, the lender's interest will take priority over the tenant's leasehold interest. The Non-Disturbance clause guarantees the tenant that, as long as they are not in default of their lease agreement, their tenancy will not be disturbed by the lender's actions. The lender agrees not to terminate the lease or disrupt the tenant's rights and leasehold improvements, even in the event of foreclosure. Lastly, the Attornment clause requires the tenant to recognize and accept a new landlord, typically the lender or purchaser of the property through foreclosure, as the successor landlord. This ensures that the tenant continues to pay rent and comply with the lease terms, regardless of any change in ownership. Apart from the standard Fairfax, Virginia SODA agreement, there can be variations based on the specific terms and conditions negotiated between the parties involved. Some common types include: 1. Limited Subordination: This type of SODA agreement allows for the subordination of the tenant's interest, but with certain limitations or conditions mentioned. These limitations could include time frames, specific tenant rights, or when certain events occur. 2. SODA with Lease and Condition Modification: In some cases, the SODA agreement may include modifications to the original lease terms and conditions. These modifications can cover changes in rental rates, renewal options, or adjustments to any existing obligations. 3. Subordination, Non-Disturbance, and Attornment Agreement with Additional Conditions: This type of SODA agreement may include additional conditions or provisions to address specific concerns or requirements of either the lender or the tenant. These conditions could cover factors such as tenant improvements, rent abatement, or any other mutually agreed-upon considerations. It is essential for both parties, the lender, and the tenant, to thoroughly review and understand the terms of the Fairfax, Virginia SODA agreement specific to their transaction. Seeking legal advice from an experienced commercial real estate attorney can help ensure the agreement aligns with their respective interests and protects their rights in the event of foreclosure or default.