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

• Category: Loans and Lending
• State: Multi-State
• County: Wayne
• 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. Wayne Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a crucial legal document that is often required when a commercial property located in Wayne, Michigan is subject to a commercial loan. This agreement is designed to protect the interests of both the lender and the tenant in the event of foreclosure or other similar situations. It ensures that the lease remains valid and enforceable regardless of any changes in ownership or foreclosure proceedings. Subordination is an important aspect of the SODA, as it allows the lender's lien to take priority over the tenant's lease. In other words, if the property goes into foreclosure, the lender's rights to the property would supersede the tenant's lease. This provision is typically included to protect the lender's interest in recouping their investment. Non-Disturbance is another crucial element of the SODA. It guarantees that the tenant can continue to occupy and conduct its business in the leased premises without interference, even if the property undergoes foreclosure. The tenant's rights under the lease would remain intact, regardless of any change in ownership or foreclosure proceedings. Attornment refers to the tenant's acknowledgment and agreement to recognize a new owner or lender as the landlord or mortgagee, respectively. In the event of foreclosure, the tenant agrees to attorn to the new owner or the lender if they become the new owner. This provision ensures that the tenant's obligations under the lease, such as paying rent and abiding by terms, will remain in effect with the new owner or lender. Different types of Wayne, Michigan Subordination, Non-Disturbance, and Attornment Agreements may vary depending on the specific terms and conditions agreed upon by the parties involved. Some variations may include provisions related to automatic subordination, which allows the lease to automatically become subordinate to any future loan taken out by the landlord. Another variation may include a recognition and agreement clause, which obligates the tenant to enter into a direct lease with the new owner if requested. In conclusion, the Wayne Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease is a critical document that safeguards the tenant's rights in a commercial property subject to a loan and potential foreclosure. By delineating subordination, non-disturbance, and attornment provisions, this agreement ensures that the lease remains valid and enforceable, providing security and continuity to the tenant's operations.

Wayne Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease (SODA) is a crucial legal document that is often required when a commercial property located in Wayne, Michigan is subject to a commercial loan. This agreement is designed to protect the interests of both the lender and the tenant in the event of foreclosure or other similar situations. It ensures that the lease remains valid and enforceable regardless of any changes in ownership or foreclosure proceedings. Subordination is an important aspect of the SODA, as it allows the lender's lien to take priority over the tenant's lease. In other words, if the property goes into foreclosure, the lender's rights to the property would supersede the tenant's lease. This provision is typically included to protect the lender's interest in recouping their investment. Non-Disturbance is another crucial element of the SODA. It guarantees that the tenant can continue to occupy and conduct its business in the leased premises without interference, even if the property undergoes foreclosure. The tenant's rights under the lease would remain intact, regardless of any change in ownership or foreclosure proceedings. Attornment refers to the tenant's acknowledgment and agreement to recognize a new owner or lender as the landlord or mortgagee, respectively. In the event of foreclosure, the tenant agrees to attorn to the new owner or the lender if they become the new owner. This provision ensures that the tenant's obligations under the lease, such as paying rent and abiding by terms, will remain in effect with the new owner or lender. Different types of Wayne, Michigan Subordination, Non-Disturbance, and Attornment Agreements may vary depending on the specific terms and conditions agreed upon by the parties involved. Some variations may include provisions related to automatic subordination, which allows the lease to automatically become subordinate to any future loan taken out by the landlord. Another variation may include a recognition and agreement clause, which obligates the tenant to enter into a direct lease with the new owner if requested. In conclusion, the Wayne Michigan Subordination, Non-Disturbance, and Attornment Agreement of a Lease is a critical document that safeguards the tenant's rights in a commercial property subject to a loan and potential foreclosure. By delineating subordination, non-disturbance, and attornment provisions, this agreement ensures that the lease remains valid and enforceable, providing security and continuity to the tenant's operations.