Property Ownership

In NJ, a 'subordination, non-disturbance, and attornment' (SNDA) agreement in a commercial lease protects the tenant by ensuring that:

AThe tenant's rent may not be increased
BIf the property is foreclosed upon, the tenant's lease will not be disturbed by the new owner (lender) as long as the tenant is not in default✓ Correct
CThe tenant can sublease without consent
DThe landlord cannot sell the property

Explanation

An SNDA agreement: (S) the lease is subordinate to the mortgage; (NDA) the lender won't disturb a non-defaulting tenant's possession if they foreclose; (A) the tenant will recognize (attorn to) the new owner. It protects both tenant and lender.

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