Net lease glossary
SNDA (Subordination, Non-Disturbance and Attornment Agreement)
An agreement among lender, landlord, and tenant that subordinates the lease to the mortgage while protecting the tenant's occupancy if the lender forecloses.
An SNDA sets the priority between a lease and a mortgage. The tenant agrees to subordinate its lease to the loan and to attorn to, or recognize, the lender or a foreclosure buyer as its new landlord. In return, the lender agrees not to disturb the tenant's possession as long as the tenant is not in default. Lenders often require SNDAs from major tenants, and lease language determines whether the tenant must sign one.