Escrow & Title
What is a 'subordination, non-disturbance, and attornment' (SNDA) agreement in Oregon commercial real estate?
AAn agreement between a landlord and tenant only
BAn agreement among lender, landlord, and tenant: the tenant subordinates to the lender's lien, the lender agrees not to disturb the tenant in a foreclosure, and the tenant agrees to recognize a successor landlord✓ Correct
CAn agreement between two competing lenders
DAn OREA requirement for all commercial property management
Explanation
An SNDA agreement is a tripartite agreement in commercial real estate: (1) Subordination — the tenant's lease is subordinate to the lender's mortgage; (2) Non-disturbance — if the lender forecloses, it agrees not to disturb the tenant's possession as long as the tenant performs its lease obligations; (3) Attornment — the tenant agrees to recognize the lender (or purchaser at foreclosure) as the new landlord. SNDAs are standard in Oregon commercial lending.
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