Escrow & Title
In Alaska, a 'subordination, non-disturbance and attornment (SNDA) agreement' in a commercial lease transaction primarily protects:
AThe landlord's right to increase rent
BThe tenant's right to remain in possession if the landlord's mortgage is foreclosed, and the lender's right to priority over the lease✓ Correct
CThe lender's right to collect rent directly from tenants
DThe tenant's right to purchase the property before foreclosure
Explanation
An SNDA agreement balances the lender's need for its mortgage to be superior (subordination) with the tenant's need for security that they won't be evicted if the lender forecloses (non-disturbance), and the tenant's agreement to recognize the new owner after foreclosure (attornment). It is standard in commercial leases with mortgage financing.
People Also Study
Related Alaska Questions
- Which type of title insurance policy protects the lender's interest in an Alaska mortgage transaction?Escrow & Title
- In Alaska, a lease agreement for a commercial space that is silent on the topic of renewals will terminate:Contracts
- An Alaska tenant signs a lease for $1,800 per month and must pay first month's rent, last month's rent, and a $1,800 security deposit at move-in. Total amount due at move-in is:Real Estate Math
- An Alaska commercial lease requires the tenant to pay $22 per square foot per year for 3,500 sq ft. What is the monthly rent?Real Estate Math
- In Alaska, a 'net lease' in commercial real estate means the tenant pays:Contracts
- An Alaska commercial lease requires a base rent of $24,000 per year plus a percentage rent of 4% of gross sales over $300,000. If the tenant's gross sales are $600,000, what is the total annual rent?Real Estate Math
- In Alaska commercial real estate, a 'gross lease' means the tenant pays:Contracts
- A buyer assumes the seller's existing mortgage. The buyer is now primarily liable for the debt, and if the lender releases the seller from the original obligation, this is called:Finance
Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Study This Topic
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →