Contracts
Subordination, non-disturbance, and attornment (SNDA) agreements in commercial leases are designed to:
APrevent a tenant from subleasing without landlord approval
BProtect the tenant's right to continue occupancy if the property is foreclosed upon, while subordinating the lease to the lender's mortgage✓ Correct
CRequire the tenant to pay a portion of mortgage payments
DGuarantee the landlord full rent during vacancies
Explanation
An SNDA agreement has three components: the tenant subordinates their lease to the lender's mortgage; the lender agrees not to disturb the tenant's occupancy upon foreclosure; and the tenant agrees to attorn (recognize) any new owner as landlord.
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