Subordination, Nondisturbance and Attornment Agreements: An Absolute for New York and New Jersey Commercial Tenants
Iryna Lomaga Carey and Allison Lissner provide an excellent checklist for tenants in their New Jersey Law Journal article "Subordination, Nondisturbance and Attornment Agreements: A Minimum Standard Tenant Checklist." Subordination, Nondisturbance and Attornment Agreements ("SNDA") should be the rule and not the exception for commercial tenants expending significant amounts of money and time on their leasehold improvements.
SNDAs are negotiated between lenders and ground lessors of commercial property to prevent their lease from terminating after a default by the landlord on its mortgage. Without a SNDA, after a default lenders can elect which tenants it wants to keep or replace without giving any consideration to the leases previously executed by the defaulting landlord and tenant.
