Subordination, Non-disturbance, and Attornment Agreement (Pro-Lender) (TX)
Summary
This template subordination, non-disturbance, and attornment agreement (SNDA) may be used in a Texas acquisition loan transaction when a mortgaged property in Texas is subject to existing tenancies. This template contains practical guidance, drafting notes, alternate clauses, and optional clauses. By executing an SNDA, the tenant agrees to subordinate its leasehold interest in the leased premises to the lien of the lender's deed of trust, and recognize and attorn to any subsequent landlord who acquires title to the mortgaged property (e.g., by means of a foreclosure sale). In turn, the lender agrees not to terminate or disturb the tenant's rights under its lease if the tenant is not in default when the lender forecloses on the mortgaged property. This SNDA is drafted from the perspective of the lender but contains drafting notes and guidance for the tenant. This SNDA may be recorded in the property records where the real property is located; however, it needn't be recorded to be ...