Escrow & Title
In New York, a 'subordination, non-disturbance, and attornment agreement' (SNDA) is commonly used in commercial real estate to:
ASubordinate a purchase money mortgage to a construction lien
BEnsure that a tenant's lease survives a foreclosure (non-disturbance), that the tenant's lease is subordinate to the lender's mortgage, and that the tenant will recognize a new owner after a foreclosure✓ Correct
CTransfer title from one entity to another without a deed
DGuarantee a commercial tenant's obligation to pay rent
Explanation
An SNDA agreement in New York commercial real estate has three components: (1) Subordination — the tenant agrees their lease is subordinate to the mortgage; (2) Non-disturbance — the lender agrees not to disturb the tenant's lease if they foreclose (as long as the tenant is not in default); and (3) Attornment — the tenant agrees to recognize and pay rent to the new owner after a foreclosure.
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