Houston Texas Sample Subordination, Nondisturbance and Attornment Agreement

• Category: Corporations - Public
• State: Multi-State
• City: Houston
• Control #: US-EG-9472
• Format: Word; Rich Text

Description

Subordination, Non-Disturbance and Attornment Agreement between 233 Broadway Owners LLC, Organic and Lehman Brothers Holding, Inc. regarding assurances of possession of premises dated 00/99. 5 pages. Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement A Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement is a legally binding contract that outlines the rights and obligations of parties involved in a commercial real estate transaction. It commonly arises when a tenant or a landlord enters into a lease agreement with a lender who holds a mortgage on the property. A Subordination, Nondisturbance and Attornment Agreement, also known as an SODA, is typically utilized to protect the interests of both the lender and the tenant in case of default or foreclosure. This agreement is crucial as it establishes the priority of the lender's rights over the tenant's leasehold interest, while ensuring that the tenant's rights and obligations remain intact. Here is an overview of the different types of Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreements: 1. Tenant SODA: This type of agreement protects the tenant's rights by requiring the lender to recognize the tenant's leasehold interest in the event of foreclosure. It ensures that the tenant's lease will not be disturbed, and the new owner will assume all obligations and rights outlined in the original lease agreement. 2. Lender SODA: In contrast to the tenant SODA, the lender SODA protects the interests of the lender by requiring the tenant to subordinate their leasehold interest to the lender's mortgage. This agreement ensures that the lender's rights, including foreclosure, are not hindered by the tenant's leasehold interest. 3. Landlord SODA: The landlord SODA combines elements of both the tenant and lender Sodas. It provides protection to both the landlord and the lender. It requires the tenant to recognize the lender's rights and the priority of the mortgage while ensuring the landlord's lease remains in effect. In the case of foreclosure, the tenant's lease will continue with the new owner who assumes the landlord's obligations. Key terms within a Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement may include but are not limited to: — Subordination Clause: This section outlines that the tenant's leasehold interest is subordinate to the lender's lien or mortgage, establishing the lender's priority in the event of foreclosure. — Nondisturbance Clause: This clause provides protection to the tenant by ensuring that in the event of foreclosure, the tenant's lease will not be terminated, modified, or disturbed as long as the tenant fulfills its obligations under the lease agreement. — Attornment Clause: An attornment clause states that the tenant agrees to recognize and maintain its leasehold relationship with the new owner or landlord resulting from foreclosure. The tenant acknowledges that it will attorn to the new owner and continue fulfilling its lease obligations as agreed. Understanding the different types of Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreements and their associated terms is crucial for tenants, landlords, and lenders involved in commercial real estate transactions. These agreements provide protection to all parties involved and ensure the continuation of lease terms, even in the event of default or foreclosure.

Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement A Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement is a legally binding contract that outlines the rights and obligations of parties involved in a commercial real estate transaction. It commonly arises when a tenant or a landlord enters into a lease agreement with a lender who holds a mortgage on the property. A Subordination, Nondisturbance and Attornment Agreement, also known as an SODA, is typically utilized to protect the interests of both the lender and the tenant in case of default or foreclosure. This agreement is crucial as it establishes the priority of the lender's rights over the tenant's leasehold interest, while ensuring that the tenant's rights and obligations remain intact. Here is an overview of the different types of Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreements: 1. Tenant SODA: This type of agreement protects the tenant's rights by requiring the lender to recognize the tenant's leasehold interest in the event of foreclosure. It ensures that the tenant's lease will not be disturbed, and the new owner will assume all obligations and rights outlined in the original lease agreement. 2. Lender SODA: In contrast to the tenant SODA, the lender SODA protects the interests of the lender by requiring the tenant to subordinate their leasehold interest to the lender's mortgage. This agreement ensures that the lender's rights, including foreclosure, are not hindered by the tenant's leasehold interest. 3. Landlord SODA: The landlord SODA combines elements of both the tenant and lender Sodas. It provides protection to both the landlord and the lender. It requires the tenant to recognize the lender's rights and the priority of the mortgage while ensuring the landlord's lease remains in effect. In the case of foreclosure, the tenant's lease will continue with the new owner who assumes the landlord's obligations. Key terms within a Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreement may include but are not limited to: — Subordination Clause: This section outlines that the tenant's leasehold interest is subordinate to the lender's lien or mortgage, establishing the lender's priority in the event of foreclosure. — Nondisturbance Clause: This clause provides protection to the tenant by ensuring that in the event of foreclosure, the tenant's lease will not be terminated, modified, or disturbed as long as the tenant fulfills its obligations under the lease agreement. — Attornment Clause: An attornment clause states that the tenant agrees to recognize and maintain its leasehold relationship with the new owner or landlord resulting from foreclosure. The tenant acknowledges that it will attorn to the new owner and continue fulfilling its lease obligations as agreed. Understanding the different types of Houston, Texas Sample Subordination, Nondisturbance and Attornment Agreements and their associated terms is crucial for tenants, landlords, and lenders involved in commercial real estate transactions. These agreements provide protection to all parties involved and ensure the continuation of lease terms, even in the event of default or foreclosure.