What Is a Non-Disturbance Agreement?
A non-disturbance agreement protects a tenant's right to stay in its leased space even if the landlord's lender forecloses on the property. It is most often part of a broader SNDA — a Subordination, Non-Disturbance, and Attornment agreement — among the tenant, the landlord, and the landlord's mortgage lender. The non-disturbance piece assures the tenant that a foreclosure will not automatically wipe out its lease.
The Three Parts of an SNDA
- Subordination — the tenant agrees its lease is subordinate to the lender's mortgage
- Non-disturbance — in exchange, the lender agrees not to terminate the lease or evict the tenant if it forecloses, as long as the tenant is not in default
- Attornment — the tenant agrees to recognize the foreclosing lender (or buyer) as its new landlord
Why It Matters in Florida
For a commercial tenant that has invested in build-out or depends on a specific location, non-disturbance protection is essential — without it, a foreclosure on the landlord could extinguish a junior lease and force the tenant out. For lenders, the attornment keeps a paying tenant in place after foreclosure. SNDAs are heavily negotiated in Florida commercial leasing, and a tenant should seek one before committing to a significant lease.
Related Terms
- Subordination Agreement — The subordination component
- Foreclosure — The event non-disturbance guards against
- Lease Agreement — What the agreement protects
Barnes Walker Real Estate
Barnes Walker's commercial real estate attorneys negotiate SNDAs and lease protections for Florida tenants and lenders. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC