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An SNDA (Subordination, Non-Disturbance, and Attornment) agreement ensures your commercial lease survives a landlord's mortgage foreclosure by legally binding the lender to honor your tenancy. It prevents eviction while maintaining your negotiated leasehold rights and investment.

Key non-disturbance terms to negotiate include lease survival conditions, lender priority, and attornment requirements. Focus on ensuring the lender cannot terminate your tenancy post-foreclosure and that your original lease rights, including any tenant improvements, remain fully enforceable.

You need a tripartite agreement, like an SNDA, when signing a long-term commercial lease, such as a 10-year flagship store commitment, to secure your investment. It establishes the legal framework protecting your tenancy if the landlord defaults on their mortgage and faces foreclosure.

This guidance specifically addresses commercial real estate relationships involving landlord-tenant and lender-borrower frameworks. It focuses on Subordination, Non-Disturbance, and Attornment agreements for commercial tenants, not residential tenant rights or residential foreclosure proceedings.

Subordination places your lease interest below the lender's mortgage priority, while attornment is your agreement to recognize the foreclosing lender as your new landlord. Together with non-disturbance, they form an SNDA that protects your leasehold while acknowledging the lender's security interest.

The best way to ensure lease survival during a landlord's mortgage default is negotiating a robust SNDA agreement before signing. This tripartite contract legally obligates the lender to honor your lease terms, protecting your tenancy and preventing eviction after the foreclosure process concludes.