Pima Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• County: Pima
• 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. A Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement (SODA) is an important legal document that outlines the relationship between a tenant, landlord, and lender in a commercial property. This agreement is primarily used when a commercial property is subject to a loan, ensuring the lender's interests are protected in case of default or foreclosure. In a typical Lima Arizona SODA, three key concepts are included: subordination, non-disturbance, and attornment. 1. Subordination: Subordination is an agreement by which the tenant agrees that their leasehold interest is subordinate to the lender's mortgage or deed of trust. This means that in the event of foreclosure, the lender's rights take precedence over the tenant's rights. It ensures that the tenant cannot interfere with or claim the property ahead of the lender. 2. Non-Disturbance: Non-disturbance is a provision that protects the rights of the tenant. It ensures that if the property undergoes foreclosure or a change in ownership, the tenant's lease will remain valid and enforceable, and the new owner or lender cannot disturb the tenant's occupancy or terminate the lease. This provides security to the tenant and maintains business continuity. 3. Attornment: Attornment is the tenant's agreement to recognize a new landlord or lender if there is a change in ownership or if the property goes through foreclosure. It states that the tenant will acknowledge the new owner or lender as their landlord and will continue to pay rent and abide by the terms of the lease. Attornment provides stability to the lender by assuring uninterrupted rental income from the tenant. Different variations of Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan may exist based on individual circumstances and negotiations. For example, some agreements may include specific provisions on tenant improvements, alteration rights, or insurance requirements. Additionally, the terms and conditions of subordination, non-disturbance, and attornment can be tailored to meet the parties' needs and objectives. To summarize, a Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document that protects the interests of a tenant, landlord, and lender in a commercial property. It establishes the priority of rights in case of default or foreclosure, ensures the tenant's lease remains intact, and acknowledges a new owner or lender. This agreement plays a vital role in maintaining stability and security for all parties involved in a commercial property lease under a commercial loan.

A Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement (SODA) is an important legal document that outlines the relationship between a tenant, landlord, and lender in a commercial property. This agreement is primarily used when a commercial property is subject to a loan, ensuring the lender's interests are protected in case of default or foreclosure. In a typical Lima Arizona SODA, three key concepts are included: subordination, non-disturbance, and attornment. 1. Subordination: Subordination is an agreement by which the tenant agrees that their leasehold interest is subordinate to the lender's mortgage or deed of trust. This means that in the event of foreclosure, the lender's rights take precedence over the tenant's rights. It ensures that the tenant cannot interfere with or claim the property ahead of the lender. 2. Non-Disturbance: Non-disturbance is a provision that protects the rights of the tenant. It ensures that if the property undergoes foreclosure or a change in ownership, the tenant's lease will remain valid and enforceable, and the new owner or lender cannot disturb the tenant's occupancy or terminate the lease. This provides security to the tenant and maintains business continuity. 3. Attornment: Attornment is the tenant's agreement to recognize a new landlord or lender if there is a change in ownership or if the property goes through foreclosure. It states that the tenant will acknowledge the new owner or lender as their landlord and will continue to pay rent and abide by the terms of the lease. Attornment provides stability to the lender by assuring uninterrupted rental income from the tenant. Different variations of Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan may exist based on individual circumstances and negotiations. For example, some agreements may include specific provisions on tenant improvements, alteration rights, or insurance requirements. Additionally, the terms and conditions of subordination, non-disturbance, and attornment can be tailored to meet the parties' needs and objectives. To summarize, a Lima Arizona Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document that protects the interests of a tenant, landlord, and lender in a commercial property. It establishes the priority of rights in case of default or foreclosure, ensures the tenant's lease remains intact, and acknowledges a new owner or lender. This agreement plays a vital role in maintaining stability and security for all parties involved in a commercial property lease under a commercial loan.