Escrow & Title

In Colorado, a 'subordination, non-disturbance, and attornment' (SNDA) agreement in commercial real estate is primarily used to:

AEstablish the purchase price of a commercial property
BDefine the relationship between a lender, landlord, and commercial tenant in the event of foreclosure✓ Correct
CTransfer commercial lease rights to a new tenant
DAssign the mortgage to a new lender

Explanation

An SNDA agreement protects a commercial tenant's right to remain in possession after a lender forecloses. The tenant agrees to subordinate their lease to the mortgage (Subordination), the lender agrees not to disturb the tenant's possession (Non-Disturbance), and the tenant agrees to recognize the new owner after foreclosure (Attornment).

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