Contracts

In Tennessee, a 'subordination, non-disturbance, and attornment agreement' (SNDA) in commercial real estate protects:

AOnly the mortgage lender
BBoth the tenant and the lender — the lender's mortgage has priority, but the tenant's lease is protected in foreclosure✓ Correct
COnly the tenant
DThe seller against future claims

Explanation

An SNDA agreement simultaneously: subordinates the tenant's lease to the lender's mortgage, provides lender non-disturbance protection by agreeing not to terminate the tenant's lease in foreclosure, and requires the tenant to attorn (acknowledge) the new owner.

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