Lender’s Subordination, Attornment and Non-Disturbance Agreement
This ominous sounding agreement is quite useful and necessary when a property owner is seeking financing on a property subject to a pre-existing lease. The lender will require the tenant to sign this agreement, putting the lender’s mortgage rights in primary position. However, the document also serves to reassure the tenant that in the event the lender must foreclose and take possession of the property, the tenant may remain in the property with the same lease terms intact, and pay rent directly to the lender. The document must be signed by the tenant in front of a notary public and filed of record.
Documents to be prepared for you: “Follow-Through” Instructions, Subordination Agreement.