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

• Category: Loans and Lending
• State: Multi-State
• City: San Antonio
• 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 San Antonio Texas Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document typically executed between a tenant, landlord, and a lender in the context of a commercial loan. This agreement protects the rights and obligations of each party in the event of a default or foreclosure on the property. Keywords: San Antonio Texas, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan 1. Definition and Purpose: The San Antonio Texas SODA is a legally binding agreement that establishes the priority of certain rights and obligations in a commercial lease when the leased property acts as collateral for a commercial loan. The agreement primarily addresses three key aspects — subordination, non-disturbance, and attornment. 2. Subordination: Subordination refers to the prioritization of lien rights. In the San Antonio Texas SODA, the tenant acknowledges that the lender's lien on the property holds superior importance compared to their leasehold interest. This means that in case of foreclosure or default on the commercial loan, the lender's rights take precedence over the tenant's lease rights. 3. Non-Disturbance: Non-disturbance ensures that the tenant's lease rights remain intact even in the event of foreclosure or default. The San Antonio Texas SODA guarantees non-disturbance protection to the tenant. This means that if the lender forecloses on the property, the tenant's rights under the lease agreement will be respected, and they can continue occupying the premises undisturbed by the foreclosure proceedings. 4. Attornment: Attornment establishes the tenant's obligation to recognize and accept a new landlord in case of a change in ownership due to a foreclosure or transfer of the property. The San Antonio Texas SODA requires the tenant to attorn to the new landlord resulting from a foreclosure or transfer. This ensures that the tenant's obligations under the lease agreement continue unaffected, irrespective of any change in ownership. Types of San Antonio Texas SODA agreements: 1. Tenant-focused SODA: This type of SODA primarily protects the tenant's rights, ensuring non-disturbance and lease enforcement even in cases of foreclosure, transfer, or change in ownership. 2. Lender-focused SODA: This type of SODA mainly prioritizes the lender's rights, establishing the leasehold interest as subordinate to the lender's lien, safeguarding their interests in case of foreclosure or default. 3. Mutual SODA: A mutual SODA seeks a balanced approach between the tenant's and lender's interests. This agreement ensures non-disturbance for the tenant and subordination for the lender, offering protection to both parties in case of default or foreclosure. In San Antonio, Texas, the SODA agreement plays a crucial role in commercial real estate transactions involving loans and leasehold interests. It provides transparency and clarity regarding the rights and obligations of tenants, landlords, and lenders, safeguarding their interests and minimizing the potential disruptions caused by default or foreclosure on a commercial property.

A San Antonio Texas Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a legal document typically executed between a tenant, landlord, and a lender in the context of a commercial loan. This agreement protects the rights and obligations of each party in the event of a default or foreclosure on the property. Keywords: San Antonio Texas, Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan 1. Definition and Purpose: The San Antonio Texas SODA is a legally binding agreement that establishes the priority of certain rights and obligations in a commercial lease when the leased property acts as collateral for a commercial loan. The agreement primarily addresses three key aspects — subordination, non-disturbance, and attornment. 2. Subordination: Subordination refers to the prioritization of lien rights. In the San Antonio Texas SODA, the tenant acknowledges that the lender's lien on the property holds superior importance compared to their leasehold interest. This means that in case of foreclosure or default on the commercial loan, the lender's rights take precedence over the tenant's lease rights. 3. Non-Disturbance: Non-disturbance ensures that the tenant's lease rights remain intact even in the event of foreclosure or default. The San Antonio Texas SODA guarantees non-disturbance protection to the tenant. This means that if the lender forecloses on the property, the tenant's rights under the lease agreement will be respected, and they can continue occupying the premises undisturbed by the foreclosure proceedings. 4. Attornment: Attornment establishes the tenant's obligation to recognize and accept a new landlord in case of a change in ownership due to a foreclosure or transfer of the property. The San Antonio Texas SODA requires the tenant to attorn to the new landlord resulting from a foreclosure or transfer. This ensures that the tenant's obligations under the lease agreement continue unaffected, irrespective of any change in ownership. Types of San Antonio Texas SODA agreements: 1. Tenant-focused SODA: This type of SODA primarily protects the tenant's rights, ensuring non-disturbance and lease enforcement even in cases of foreclosure, transfer, or change in ownership. 2. Lender-focused SODA: This type of SODA mainly prioritizes the lender's rights, establishing the leasehold interest as subordinate to the lender's lien, safeguarding their interests in case of foreclosure or default. 3. Mutual SODA: A mutual SODA seeks a balanced approach between the tenant's and lender's interests. This agreement ensures non-disturbance for the tenant and subordination for the lender, offering protection to both parties in case of default or foreclosure. In San Antonio, Texas, the SODA agreement plays a crucial role in commercial real estate transactions involving loans and leasehold interests. It provides transparency and clarity regarding the rights and obligations of tenants, landlords, and lenders, safeguarding their interests and minimizing the potential disruptions caused by default or foreclosure on a commercial property.