Attornment is most often associated with real estate laws and must recognize the relationship between the parties in a transaction. Z.B. there may be a break if a tenant rents an apartment just to change the landlord during the lease. The attornment agreement does not create new rights for the landlord, unless the tenant signs it. The landlord may use a tenant`s refusal to sign a removal as a reason for eviction. How does the SNDA do all this? Subordination, non-interference and attornment are closely related concepts. Subordination is the tenant`s agreement that his shares be subordinated to those of the lender under the lease. Of course, in many situations, the mortgage is already higher depending on when the mortgage was registered and when the lease was registered or whether the tenant took possession of the property. But the lender will want to ensure that its priority will not be lost if the loan documents are changed, and both the lender and the lessor will want to protect the lessor`s ability to refinance with another lender. Tenants may have no choice but to sign the SNDA. A clause in their tenancy may require them to sign an SNDA. The SNDA form can even be attached to the lease agreement, or the lender can inform tenants that the SNDA is non-negotiable.
The tenant may have already signed another SNDA like this when he signed his lease. However, it is not uncommon for tenants to be angry before the property is seized or bankrupted. An owner with financial problems may reduce services or delay building maintenance. The building may look shabby and repairs may take longer. Elevators may be more frequent due to the lack of regular maintenance. The lessor`s failures could even violate the rental conditions. Many tenants ignore the SNDA language when negotiating their commercial leases. But this is the best time for tenants to negotiate the SNDA – when the landlord is in good financial health and the tenant has the most bargaining power. Tenants can look for a way out of their leases, may see enforced execution or bankruptcy as their chance to get out of their leases.