Property Ownership

In Rhode Island, what is a 'subordination, non-disturbance and attornment' (SNDA) agreement used in commercial real estate?

AAn agreement to waive the landlord's duty of habitability
BAn agreement among the lender, landlord, and tenant clarifying the priority of the mortgage vs. leases and ensuring tenant rights if the landlord is foreclosed upon✓ Correct
CA sublease agreement between tenants
DA deed restriction prohibiting commercial use

Explanation

An SNDA agreement protects both the lender and commercial tenants: the tenant agrees to subordinate the lease to the mortgage (if not already subordinate) and to attorn (recognize) a new owner after foreclosure, while the lender agrees not to disturb the tenant's possession if they are not in default.

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