Property Management

A subordination, non-disturbance, and attornment agreement (SNDA) in Indiana commercial leasing ensures:

AThe tenant's lease is superior to any mortgage
BThe tenant's lease is subordinate to the lender's mortgage, but the lender agrees not to disturb the tenant if it forecloses, and the tenant agrees to recognize the lender as the new landlord✓ Correct
CThe landlord cannot modify the lease without the lender's consent
DThe tenant automatically owns the property upon foreclosure

Explanation

An SNDA protects the tenant in foreclosure: the lease is subordinate to the mortgage (lender's interests take priority), but the lender agrees not to terminate the lease (non-disturbance) if it forecloses, and the tenant agrees to recognize the new owner (attornment).

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