For example, a non-interference clause is often included in a subordination, non-interference and disturbance agreement (SNDA). The subordination clause would make a tenant a junior at a lender`s mortgage rates. This would leave the owner to seek financing with the property, security is after the tenant has signed agreements to occupy the place. The attornment clause is a guarantee that the tenant recognizes the new owner of the property as the owner and continues to pay rent to him during the term of the tenancy when the property changes ownership. The court found that there was only a verbal agreement between the tenant and the landlord at the time the landlord obtained the mortgage and the actual rent was made after the mortgage application. The court also found no evidence that the first lender was aware of the verbal agreement between the landlord and the tenant, or that it accepted the tenancy agreement. The Court therefore found that the lease was not binding on the first or second mortgage. A non-interference clause is a provision of a mortgage agreement that guarantees the sustainability of a tenancy agreement between the tenant and the landlord in all circumstances. This is mainly to protect the tenant from evacuation by the Mortgagor when the property is isolated from the lender. A non-interference clause ensures that a tenant is not evicted if the landlord goes bankrupt. A non-interference clause may also come into play when the property occupied by the tenant is sold by the landlord and not by forced execution or bankruptcy. The tenant can retain the rights under the clause as long as they are not late.
Such a clause can be grouped with other conditions and agreements that the tenant signs if he agrees to occupy a space, especially with a commercial property. The „non-trouble“ part of the agreement, also known as the „right to silent enjoyment,“ is exactly as stated in its name. Upon entering an SNDA, the lender agreed that the lender or other buyer would not „interfere“ with the tenant in the sale of the property of the tenancy through a forced sale as long as the tenant is not late and that rent continues as if the enforcement had never taken place. This case shows how important it is for tenants to get a non-interference agreement. A non-dysfunctional tenancy agreement is an agreement between the tenant and the landlord`s lender, which allows the tenant to remain in possession of the rental premises despite possible enforced enforcement action against the landlord. If, in this case, a default agreement had been reached, the result could have been very different. The court challenged the tenant and found that the rent on the second mortgage was not binding. The Court found that when a mortgagor is in default with a mortgage and a lender takes possession of a property, the mortgage does not necessarily enter the borrower`s shoes with respect to a commercial lease.
The court found that a lease agreement did not involve a lender who, after taking possession of a property, was not binding unless the mortgage accepted and was aware of the lease when the mortgage was received. Despite this, tenants and mortgages can create a tenancy agreement by agreement or by behavior.