Non-Disturbance and Attornment Agreement Form

When it comes to commercial leasing, one legal document that often comes up is the non-disturbance and attornment agreement form. This document is often required by lenders or investors to protect their interests in the property. In this article, we’ll explain what a non-disturbance and attornment agreement form is, why it’s important, and what it should include.

What is a non-disturbance and attornment agreement form?

A non-disturbance and attornment agreement form is a legal document that establishes the rights of a tenant in a commercial property in the event that the property is foreclosed upon. Essentially, it ensures that the tenant’s lease will remain in effect regardless of any changes in ownership.

Why is a non-disturbance and attornment agreement form important?

Without a non-disturbance and attornment agreement form, a tenant could be at risk of losing their lease in the event of a foreclosure. This could leave them without a place to do business and potentially facing financial losses. Lenders and investors may require this document to protect their investment in the property, as it ensures that the tenant will continue to pay rent and maintain the property even if ownership changes hands.

What should a non-disturbance and attornment agreement form include?

A non-disturbance and attornment agreement form should include several key elements:

1. Identification of the parties involved: This includes the landlord, tenant, and lender or investor.

2. Description of the property: This should include the address, legal description, and any relevant details about the property.

3. Statement of the tenant’s rights: The document should clearly state that the tenant’s lease will remain in effect in the event of a foreclosure.

4. Obligations of the tenant: This should include a statement that the tenant will continue to pay rent and maintain the property in accordance with the lease agreement.

5. Obligations of the lender or investor: The document should state that the lender or investor will not disturb the tenant’s rights under the lease as long as the tenant fulfills their obligations.

6. Signatures: The non-disturbance and attornment agreement form should be signed by all parties involved.

In summary, a non-disturbance and attornment agreement form is an important legal document that protects the rights of tenants in commercial properties. It is typically required by lenders or investors to safeguard their investment in the property. When drafting this document, it’s important to include all necessary elements to ensure that all parties’ rights and obligations are clearly outlined.

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