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    Request a Commonwealth Subordination and Non-Disturbance Agreement

    If you are leasing a commonwealth property, you can request a Non-Disturbance and Attornment Agreement. 

    Non-disturbance and attornment agreement form

    Overview

    Requesting a Non-Disturbance and Attornment Agreement involves seeking assurance from the landlord's lender that the tenant's lease will remain intact and operational under its current terms, even if the property undergoes foreclosure.

    Key points about a Non-Disturbance and Attornment Agreement (NDAA)

    A Non-Disturbance and Attornment Agreement (NDAA) is a legal document used in real estate, particularly in commercial leasing. It involves three parties: the tenant, the landlord, and the landlord's lender. Here's what each component of the agreement typically entails:

    1. Non-Disturbance: This clause assures the tenant that their lease will continue under its current terms even if the landlord defaults on their mortgage and the lender forecloses on the property. Essentially, the tenant's right to occupy the leased premises won't be "disturbed" by such events.

    2. Attornment: This part of the agreement requires the tenant to recognize the lender (or whoever acquires the property through foreclosure) as their new landlord. The tenant agrees to continue paying rent and fulfilling other lease obligations to the new owner.

    3. Subordination: Often included in these agreements, this clause states that the tenant's lease is subordinate to the lender's mortgage. This means that the mortgage takes priority over the lease in terms of claims on the property.

    The NDAA provides security for both the tenant and the lender:

    • For Tenants: It ensures that they can continue their business operations without interruption, even if ownership of the property changes due to foreclosure.

    • For Lenders: It ensures that the property remains occupied and generates rental income, which can be crucial for maintaining the property's value.

    Overall, these agreements are an important part of commercial real estate transactions, providing stability and clarity for all parties involved.

    Contact us

    Inquiries about leasing Commonwealth-owned space should be directed to (717) 787-4394.