In a leasing context, an agreement that is usually among a landlord's lender, a tenant and a landlord. Sometimes there are third parties with an interest in the real property who are also signatories to the SNDA, such as a ground lessor. An SNDA primarily sets out the understanding between the parties concerning their respective liens and their rights and obligations to each other if the lender exercises its foreclosure rights under the mortgage .
An SNDA generally includes:
The tenant's subordination of its lease to the mortgage.
The tenant's recognition of the lender (or successor purchaser) as the new landlord if the landlord defaults under its mortgage and the lender exercises its remedies under the mortgage, such as a foreclosure action or deed-in-lieu of foreclosure.
The lender's agreement to not terminate the tenant's lease if:
the lender exercises its default remedies against the landlord; and