Harris Texas Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• County: Harris
• 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. The Harris Texas Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a vital legal document associated with commercial loans and leases. It ensures the protection of all parties involved in a real estate transaction, specifically when leasing commercial properties. In this detailed description, we will delve into the significance of the SODA and its various types, outlining the essential aspects and relevant keywords. The Harris Texas SODA serves as a tripartite agreement involving the lender providing the commercial loan, the landlord leasing the property, and the tenant occupying the leased premises. It establishes provisions that protect the tenant's rights in case of default by the landlord, foreclosure actions taken by the lender, or potential changes in ownership of the property. Keywords: Harris Texas, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, real estate transaction, leasing commercial properties, tenant, landlord, lender, tripartite agreement, provisions, tenant's rights, default, foreclosure actions, changes in ownership. 1. Subordination Agreement: The subordination aspect of the SODA entails the tenant agreeing to subordinate their lease rights to any interests the lender may have in the property. This agreement ensures that the lender's mortgage or lien takes precedence over the tenant's leasehold rights. 2. Non-Disturbance Agreement: The non-disturbance component assures the tenant that, in the event of the landlord's default or foreclosure proceedings, the lender will not disturb the tenant's rights to the leased premises. The tenant retains their rights to occupy and use the property, even under new ownership. 3. Attornment Agreement: The attornment provision specifies that, if the lender forecloses on or obtains ownership of the property, the tenant must recognize and accept the new owner (typically the lender) as their landlord. This agreement ensures continuity of the lease and avoids potential disruptions to the tenant's business operations. Additional keywords: default, foreclosure proceedings, leasehold rights, occupy, use, new owner, continuity, business operations. Overall, a Harris Texas Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan safeguards the tenant's interests and provides them with a level of certainty and stability in regard to their leasehold rights. By understanding the significance of these agreements and their different types, all parties involved can navigate the complexities of commercial real estate transactions with confidence.

The Harris Texas Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a vital legal document associated with commercial loans and leases. It ensures the protection of all parties involved in a real estate transaction, specifically when leasing commercial properties. In this detailed description, we will delve into the significance of the SODA and its various types, outlining the essential aspects and relevant keywords. The Harris Texas SODA serves as a tripartite agreement involving the lender providing the commercial loan, the landlord leasing the property, and the tenant occupying the leased premises. It establishes provisions that protect the tenant's rights in case of default by the landlord, foreclosure actions taken by the lender, or potential changes in ownership of the property. Keywords: Harris Texas, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan, real estate transaction, leasing commercial properties, tenant, landlord, lender, tripartite agreement, provisions, tenant's rights, default, foreclosure actions, changes in ownership. 1. Subordination Agreement: The subordination aspect of the SODA entails the tenant agreeing to subordinate their lease rights to any interests the lender may have in the property. This agreement ensures that the lender's mortgage or lien takes precedence over the tenant's leasehold rights. 2. Non-Disturbance Agreement: The non-disturbance component assures the tenant that, in the event of the landlord's default or foreclosure proceedings, the lender will not disturb the tenant's rights to the leased premises. The tenant retains their rights to occupy and use the property, even under new ownership. 3. Attornment Agreement: The attornment provision specifies that, if the lender forecloses on or obtains ownership of the property, the tenant must recognize and accept the new owner (typically the lender) as their landlord. This agreement ensures continuity of the lease and avoids potential disruptions to the tenant's business operations. Additional keywords: default, foreclosure proceedings, leasehold rights, occupy, use, new owner, continuity, business operations. Overall, a Harris Texas Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan safeguards the tenant's interests and provides them with a level of certainty and stability in regard to their leasehold rights. By understanding the significance of these agreements and their different types, all parties involved can navigate the complexities of commercial real estate transactions with confidence.