Escrow & Title

A 'subordination, non-disturbance, and attornment agreement' (SNDA) in an Arizona commercial lease transaction protects:

AThe seller's interest after closing
BThe tenant's right to remain in the property if the landlord defaults and a lender forecloses, in exchange for the tenant recognizing the lender's priority✓ Correct
CThe lender's right to accelerate the loan
DThe landlord's right to increase rent at foreclosure

Explanation

An SNDA provides: Subordination (tenant's lease is junior to the mortgage), Non-Disturbance (lender won't disturb tenant's possession if they're not in default), Attornment (tenant recognizes the new owner after foreclosure). It protects both the lender and the tenant.

Related Arizona Escrow & Title Questions

Practice More Arizona Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →