Document background
The Attornment And Non-Disturbance Agreement (SNDA) is a crucial document in German commercial real estate transactions where a property is both leased and financed. It becomes necessary when a landlord obtains or has existing financing secured by the property that is also subject to a lease. The agreement serves three main purposes under German law: it confirms the subordination of the lease to the mortgage, ensures the tenant can remain in the property if the lender forecloses, and establishes the tenant's obligation to accept a new owner as landlord following a foreclosure. The document must comply with German civil law requirements, including specific provisions of the BGB regarding real estate transactions and security interests. It typically requires notarization and consideration of land register (Grundbuch) regulations. This agreement is particularly important in commercial financing transactions where lenders require certainty about their security interests while tenants seek assurance about their continued occupancy rights.
