Attornment grants authority or jurisdiction to a party, even though there are no legal rights. This relates to transactions in real estate and comes into being when the tenant will come to know a new person as their new landlord. This is of great importance in the case of commercial property when the tenant should be aware of the attornment clause and there is a change in the landlord.
The attorney clause in an SNDA or subordination, non-disturbance, and attorney arrangement helps the occupant to know of the new landlord and continue to pay the rent to the new landlord. Using the clause makes it easy to settle the transaction and makes it easy for the tenant.
The attorney relates to property laws and helps understand the transaction between the parties involved. The agreement will not create a new set of laws until the tenant signs it or agrees. But the tenant should understand the agreement in detail before giving consent. The clause also states that the tenant should continue to pay whoever is the property owner.
The agreement clearly states the relationship between the landlord and the current tenant. As per the lease, the tenant should give an attornment upon request. Moreover, at the time of execution of the attorney, the tenant and the landlord has to disclose whether they have any disputes or not. If the tenant denies the request for attornment, the landlord can use this ground to evict the tenant, such as having insecurity of lease or others. It is how there is important to have the correct use of the attornment, and it should be done right. This will help the landlord and the tenant handles any disputes easily.
Attornment is mainly related to real estate and helps understand the parties relationship in a particular transaction. This commercial lease reminds the tenants of the property terms, and there shouldn’t be any problem with the transaction. The non-disturbance clause states that the tenant can continue to occupy the leased space as long as it has been mentioned in the agreement clause. If the landlords fail to meet the mortgage laws or obligations, the tenant has the same rights for the property. This is how it is important to have the attornment agreement done right on time. Having the agreement can protect the tenant when the landlord takes any unnecessary step against the tenant regarding the property lease.
