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Expert Analysis

SNDA Agreements Benefit Both Tenants And Lenders

Law360, New York (March 6, 2017, 3:48 PM EST) -- Most real estate leases — both commercial and residential — involve property encumbered by a mortgage. In the normal course, the tenants and the mortgage lender have little or no interaction with each other. However, a default under the mortgage loan by the owner/borrower/landlord can have undesirable consequences for both the tenant and the mortgage lender, including, in the most extreme instance, termination of the lease. Such consequences can be avoided by the execution of a subordination, nondisturbance and attornment agreement (commonly referred to as an "SNDA") by the mortgage lender and the tenant....

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