Escrow & Title

In South Carolina, what is a 'non-disturbance agreement' in commercial real estate?

AAn agreement that no construction noise will disturb tenants
BAn agreement between a lender and tenant that the tenant's lease will survive a foreclosure if the tenant is not in default✓ Correct
CAn agreement preventing competing uses near the property
DA noise ordinance compliance agreement

Explanation

A non-disturbance agreement (SNDA — Subordination, Non-Disturbance, and Attornment) protects commercial tenants by ensuring that if the property is foreclosed, the lender will not disturb the tenancy as long as the tenant is not in default. It provides lease security for tenants.

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