Escrow & Title
In a Texas commercial real estate sale, a 'non-disturbance agreement' (SNDA) is used to:
APrevent the seller from disturbing the buyer's possession
BProtect a tenant's lease if the property is foreclosed, ensuring the new owner honors the lease (subordination, non-disturbance, and attornment)✓ Correct
CPrevent neighbors from disturbing the property's quiet enjoyment
DProtect the title company from liability
Explanation
An SNDA agreement (Subordination, Non-Disturbance, and Attornment) in commercial real estate provides: (1) Subordination—the tenant's lease is subordinate to the mortgage; (2) Non-Disturbance—if foreclosure occurs, the lender agrees not to disturb the tenant's occupancy if they are not in default; (3) Attornment—the tenant agrees to recognize the new owner after foreclosure.
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