Escrow & Title

What is a 'non-disturbance agreement' (NDA) in Delaware commercial leasing?

AAn agreement prohibiting tenants from disturbing other tenants
BA lender's agreement that, in the event of foreclosure, the tenant's lease will be recognized and the tenant will not be disturbed provided they comply with lease terms✓ Correct
CA noise ordinance compliance agreement required for commercial tenants
DAn agreement between co-owners not to disturb each other's use

Explanation

A non-disturbance agreement (NDA) is given by the lender to tenants in a SNDA (Subordination, Non-Disturbance, and Attornment agreement). It protects the tenant's right to remain in the leased space in the event the landlord defaults and the lender forecloses.

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