Monroe Commercial Leases and SNDA's
Whenever you are looking at relocating, moving or just signing in to leasing a Monroe Commercial property, you must obtain a Subordination and Non-Disturbance Agreement. Normally known to the commercial market as a SNDA, the clause enables the rights of the tenant in the building are lesser than that of the lender. In a market that has been plagued with foreclosures a few years back, this is just one of the expected requirements for new tenants to sign.
With many people involved in the leasing process, the grant gives certain rights to tenant, whereas a loan will giver other particular rights to the lender. By signing this document, the lender is thereby stating that in the event that a foreclosure does occur, the lender will not disturb, interfere or stand in the way of the tenant during the process. The tenant must be in complete compliance of the original sign lease of the Monroe Commercial property, other wise the SNDA may be able to be voided or terminated.
As a tenant who is leasing the space, if the lender comes in to foreclosure on the property and the tenant is in the subordinate position, there is a possibility that the lease can be terminated with the tenant not able to remain in their current space. In order to avoid these issues, the tenant in this case would want the lender to have established a nondisturbance agreement as well, allowing the tenant to remain in their current space.
Overall, the SNDA is around to protect the Monroe Commercial property leaser. Although foreclosures are not as dominate in the market as they once were, they still have the potential to cause issues. With that being said though, it would be wise to have a SNDA in place when signing the lease in order to avoid any potential complications at a later date.