A subordination, non-disturbance, and attornment agreement (SNDA) is a three-party agreement between tenant, landlord, and lender that protects a tenant's lease rights if the landlord defaults on their mortgage and the lender forecloses on the property. Without an SNDA, a tenant's lease could theoretically be extinguished in a foreclosure, since the mortgage typically predates the lease in priority.
The three components of an SNDA
| Component | What it means |
|---|---|
| Subordination | Tenant's lease is subordinate to the lender's mortgage |
| Non-disturbance | Lender agrees not to disturb tenant's occupancy if landlord defaults |
| Attornment | Tenant agrees to recognize the lender (or foreclosure buyer) as new landlord |
What to watch for before committing
Requesting an SNDA if not offered
If your lease doesn't automatically provide for an SNDA, consider requesting one, particularly for significant, longer-term leases.
Non-disturbance protection scope
Confirm the specific non-disturbance protections actually cover your lease rights adequately, including rent terms and any options.
Timing relative to lease execution
Understand whether the SNDA is executed at lease signing or negotiated separately, since timing can affect your leverage.
Lender cooperation requirements
Recognize that obtaining an SNDA sometimes requires proactive coordination with the landlord's existing or future lender.
Legal review for significant leases
For significant, long-term leases, have legal counsel review SNDA terms to ensure adequate protection.
Understanding your obligations under attornment
Recognize that attornment means you agree to continue performing under the lease with a new landlord (the lender or foreclosure buyer) if a default occurs.
When you need to know this
- Signing a significant, long-term lease — protecting your occupancy rights against potential landlord mortgage default
- Landlord properties with existing mortgages — understanding your lease's vulnerability without proper SNDA protection
- Negotiating lease terms — proactively requesting SNDA protection if not automatically included
- Assessing risk before a major space commitment — understanding what happens to your lease if the landlord defaults on financing
Frequently asked questions
Ready to protect your lease rights?
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