Subordination, Non-Disturbance, and Attornment Agreements: Drafting to Protect Lenders, Tenants, and Landlords

Recording of a 90-minute premium CLE webinar with Q&A


Conducted on Tuesday, September 22, 2020

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will discuss the purpose and objectives of subordination, non-disturbance, and attornment agreements (SNDAs) for all key stakeholders--lenders, tenants, and landlords. The panel will outline best practices for drafting and negotiating SNDAs and other related provisions, such as estoppel certificates.

Description

One of the most significant issues in commercial leasing and real estate finance is the priority of the secured loan concerning the property owner's tenants. SNDAs are critical to set out the rights and obligations of the landlord, tenant, and lender.

The SNDA agreement addresses how and when the tenant's rights are subordinate to the rights of the lender. Non-disturbance provisions assure that the tenant's rights to the premises will be preserved and not be disturbed if the landlord defaults on its loan and the lender forecloses. Attornment provisions assure that the tenant will recognize the lender as the new landlord after foreclosure.

SNDAs include other provisions that may alter the lease terms, including application of insurance and condemnation proceeds, notice obligations, and lender consent rights in connection with assignment or amendment of the lease. Estoppel certifications may also be included.

Listen as our authoritative panel of real estate practitioners analyzes the purpose and objectives of SNDA agreements for lenders, tenants, and landlords and explains how to draft and negotiate SNDAs and other related provisions such as estoppel certificates.

READ MORE

Outline

  1. Overview of SNDAs and their objectives
  2. Subordination provisions
  3. Non-disturbance provisions
  4. Attornment provisions
  5. Additional provisions that are often included in SNDAs (estoppel, notice, use of property, casualty insurance proceeds)

Benefits

The panel will review these and other key issues:

  • The lender's objectives in negotiating the SNDA agreement and how the lender can protect the future rental stream of the property
  • The tenant's objectives beyond non-disturbance of possession of the premises and rights they should seek to negotiate
  • The landlord's objectives in drafting and negotiating the SNDA agreement

Faculty

Gart, Ronald
Ronald S. Gart

Partner
Seyfarth Shaw

Mr. Gart has represented clients in real estate development, finance, lending, asset management, asset purchase and...  |  Read More

O'Brien, James
James C. O'Brien

Partner
Seyfarth Shaw

Mr. O'Brien has more than 20 years of experience as a transactional attorney. He has significant experience in...  |  Read More

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

$347

Download

48 hours after event

$347