Investor's wiki



What Is Attornment?

Attornment is the act of giving authority or jurisdiction to a party even however no legal rights exist. It applies for the most part to real estate transactions and may happen when a tenant recognizes another owner of the property as their new landlord.

On account of commercial property evolving hands, an attornment clause in a subordination, non-aggravation, and attornment (SNDA) agreement requires the tenant to recognize another owner as their landlord and to keep paying rent whether or not the property changes hands through a normal sale or a foreclosure.

Grasping Attornment

Attornment is generally usually associated with real property regulations and is intended to recognize the relationship between the gatherings in a transaction.

For instance, attornment might happen when a tenant leases a condo just to have the owner change during the lease. The attornment agreement doesn't make another set of rights for the owner except if the tenant signs it. The landlord might have the option to utilize a tenant's refusal to sign as justification for expulsion.

The clause in a SNDA directs that assuming ownership changes, the new owner replaces the former owner in the lease and accepts the former owner's all's rights and obligations. The clause likewise specifies that the tenants must keep on paying rent paying little heed to who claims the property.

Attornment in Commercial Leases

Commercial leases frequently contain a SNDA. This is an agreement between a tenant and landlord that portrays the specific rights of the tenant and landlord. The SNDA could likewise give data on other third gatherings like the landlord's lender or the purchaser of the property. There are three parts:

  1. subordination clause (S)
  2. non-unsettling influence clause (ND)
  3. attornment clause (A)

Attornment in a commercial lease is comparative. The attornment clause in a SNDA commits the tenant to perceive the new owner of the property as its landlord whether or not the new owner acquired the property through a normal sale or a foreclosure. The clause likewise requires the tenant to keep paying rent to the new landlord until the end of the lease term.

In the subordination clause in a SNDA, the tenant consents to permit their interest in the property to become subordinate to the interests of a third-party lender. The landlord might need to utilize the commercial property to secure financing in the wake of going into a lease with a tenant. In this way, most lenders would require any tenants to subordinate their leasehold interests to the lender's mortgage interest. The subordination clause gives the third-party lender the option to terminate the lease in the event of commercial foreclosure.

A non-disturbance clause or agreement gives the tenant the right to keep possessing the leased premises as long as they don't default. The tenant can lease the premises even after the property is sold or abandoned. The non-aggravation clause upholds the tenant rights to the premises even on the off chance that the landlord doesn't meet mortgage obligations and the property is abandoned.


  • Attornment might happen when a tenant leases a condo and the building change hands to another owner over the span of the lease.
  • Attornment applies most frequently to real estate transactions.
  • Attornment recognizes the relationship between the gatherings in a transaction.
  • The attornment agreement possibly changes the rights of the new owner in the event that it is endorsed by the tenant.