Escrow & Title

What is the purpose of a 'non-disturbance agreement' in Idaho commercial real estate?

AAn agreement preventing construction noise
BAn agreement where the lender promises not to disturb a tenant's possession if the landlord/borrower defaults✓ Correct
CAn agreement preventing neighbors from making noise
DAn agreement protecting tenants from rent increases

Explanation

A non-disturbance agreement protects tenants by ensuring that if the landlord defaults on their mortgage and the lender forecloses, the tenant's lease will not be terminated as long as the tenant is not in default.

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