Oakland Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• County: Oakland
• 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. Oakland Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan In Oakland County, Michigan, the Subordination, Non-Disturbance, and Attornment Agreement (SODA) of a lease regarding a commercial loan provides certain protections and rights to parties involved in a commercial lease when a lender extends a loan or mortgage on the property. The SODA is a legal document signed by the landlord, tenant (lessee), and the lender (typically a bank or financial institution) outlining their mutual understanding and establishing the priorities and obligations in the event of a default or foreclosure. It safeguards the tenant's leasehold interest, ensuring their continued right to occupy the premises, even if the property is foreclosed upon or the landlord defaults on their loan. The following are types of SODA agreements in Oakland, Michigan: 1. Subordination: This provision establishes that the lease agreement is subordinate to the commercial loan or mortgage. It means that the lender's mortgage or lien takes priority over the lease rights. In case of default, the lender can foreclose on the property without being subject to the tenant's leasehold interest. 2. Non-Disturbance: The non-disturbance clause protects the tenant's rights by ensuring that even if there is a foreclosure or change in ownership, the new landlord or mortgage holder will not terminate the lease or disturb the tenant's occupancy as long as the tenant is complying with the lease terms. 3. Attornment: The attornment provision refers to the tenant's agreement to recognize a new landlord or mortgage holder as the rightful landlord in case of foreclosure or transfer of ownership. This provision ensures that the tenant will continue to perform their obligations under the lease with the new landlord or, in some cases, the lender if they acquire title to the property. Overall, the SODA provides a framework that allows lenders to feel secure in extending loans against properties with existing commercial leases. It also protects tenants from being evicted in the event of a default or foreclosure, creating stability and continuity for their business operations. Keywords: Oakland Michigan, Subordination, Non-Disturbance, Attornment, Agreement, Lease, Commercial Loan, SODA, landlord, tenant, lender, foreclosure, default, mortgage, lien, leasehold interest, occupancy, ownership, recognition, property, business operations.

Oakland Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan In Oakland County, Michigan, the Subordination, Non-Disturbance, and Attornment Agreement (SODA) of a lease regarding a commercial loan provides certain protections and rights to parties involved in a commercial lease when a lender extends a loan or mortgage on the property. The SODA is a legal document signed by the landlord, tenant (lessee), and the lender (typically a bank or financial institution) outlining their mutual understanding and establishing the priorities and obligations in the event of a default or foreclosure. It safeguards the tenant's leasehold interest, ensuring their continued right to occupy the premises, even if the property is foreclosed upon or the landlord defaults on their loan. The following are types of SODA agreements in Oakland, Michigan: 1. Subordination: This provision establishes that the lease agreement is subordinate to the commercial loan or mortgage. It means that the lender's mortgage or lien takes priority over the lease rights. In case of default, the lender can foreclose on the property without being subject to the tenant's leasehold interest. 2. Non-Disturbance: The non-disturbance clause protects the tenant's rights by ensuring that even if there is a foreclosure or change in ownership, the new landlord or mortgage holder will not terminate the lease or disturb the tenant's occupancy as long as the tenant is complying with the lease terms. 3. Attornment: The attornment provision refers to the tenant's agreement to recognize a new landlord or mortgage holder as the rightful landlord in case of foreclosure or transfer of ownership. This provision ensures that the tenant will continue to perform their obligations under the lease with the new landlord or, in some cases, the lender if they acquire title to the property. Overall, the SODA provides a framework that allows lenders to feel secure in extending loans against properties with existing commercial leases. It also protects tenants from being evicted in the event of a default or foreclosure, creating stability and continuity for their business operations. Keywords: Oakland Michigan, Subordination, Non-Disturbance, Attornment, Agreement, Lease, Commercial Loan, SODA, landlord, tenant, lender, foreclosure, default, mortgage, lien, leasehold interest, occupancy, ownership, recognition, property, business operations.