As the name suggests, an SNDA is really three chords, all packaged in an ordinary package. The three aspects of the SNDA only come into play if the leased property is isolated by a lender holding a portion of the securities (mortgages or trust receipts) guaranteed by the lease. Let`s first look at the «subordination» part of the SNDA. If the lease agreement exists at the time of registration of its security interest in the property, the lease is greater than the security interest and, in the event of embezzlement by the lender, the title acquired by the buyer at the time of the forced sale is subordinated to the existing lease agreement or is submitted to it. When a tenant signs an SNDA, the tenant agrees to reverse the priorities and outcome during the enforcement; that the lender`s security interest exceeds the existing lease and that the security purchased by the purchaser at the time of the forced sale exceeds the level of credit in force after being transferred by the lender. Such a change in priority is essential for the lender, since the lender or other forced sale buyers would have the right to terminate the lease after the enforcement because of its best interest, in the absence of a dysfunctional agreement. A year later, the Ohio Supreme Court found, in another lease agreement, that a particular language in the lease was setting up Attornment`s self-order. Liberal Savings – Loan Co. v. Frankel Realty Co.

(1940), 137 Ohio St. 489, 30 N.E. 2d 1012. The opinion of Liberal Savings and Loan Co. also indicated that modern legislative amendments render the entire doctrine of the Attornment doctrine obsolete, even without a specific language of attraction in the lease. Most modern leases continue to require the tenant to be subject to the mortgage, the buyer at the time of the forced execution and anyone else who follows the interests of the landlord. What does the SNDA say? In a standard SNDA, the tenant will agree to subordinate his tenancy agreement to the lender`s fiduciary statement (subordination) in exchange for the lender`s agreement that the lender or buyer recognizes the tenant`s tenancy agreement in the event of a forced execution and does not disturb the tenant`s possession (non-deregulation). Each will commit to recognizing the other landlord and tenant under the tenancy agreement (Attornment). Most tenants will not be familiar with a concept that goes back to the English feudal system. According to the English Common Law, the tenant`s recognition and acceptance of a new gentleman was the recognition and acceptance of a new gentleman. Tenants should focus on the extent of subordination and rental. Does it apply only to the current mortgage lender? Or will it also apply to new mortgages or other financial mortgages? Lenders and lenders want the scope to be as broad as possible.

For tenants, a smaller area is preferable. How does the SNDA do all this? Subordination, non-interference and attornment are closely related concepts. Subordination is the tenant`s agreement that his shares be subordinated to those of the lender under the lease. Of course, in many situations, the mortgage is already higher depending on when the mortgage was registered and when the lease was registered or whether the tenant took possession of the property. But the lender will want to ensure that its priority will not be lost if the loan documents are changed, and both the lender and the lessor will want to protect the lessor`s ability to refinance with another lender. Tenants should ensure that the non-disruptive language is reciprocal. The lender can distribute a tenant who does not pay rent. Similarly, tenants should not be required to remain in the unit if the landlord or lender has violated the tenancy agreement.