Attornment And Non Disturbance Agreement Template for Malaysia

The Attornment And Non-Disturbance Agreement is a crucial document in Malaysian commercial property transactions where a property is both mortgaged to a lender and leased to a tenant. It addresses potential conflicts between the rights of tenants and lenders when a property owner defaults on their loan obligations. This agreement is particularly important in Malaysia's growing commercial real estate sector, where it provides security for tenants' continued occupation while protecting lenders' enforcement rights. The document typically includes provisions for lease recognition, subordination of tenant's rights to the mortgage, and the lender's commitment not to disturb the tenant's possession upon enforcement. It's commonly used in shopping centers, office buildings, and industrial properties throughout Malaysia, ensuring compliance with local property laws and banking regulations.

1. Parties: Identifies all parties to the agreement: Landlord, Tenant, and Lender

2. Background: Recitals explaining the existing lease, mortgage/charge, and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement, including Property, Lease, Mortgage, Security Documents

4. Acknowledgment and Consent: Tenant's acknowledgment of the mortgage/charge and consent to its terms

5. Non-Disturbance: Lender's commitment not to terminate the lease or disturb tenant's possession upon enforcement

6. Attornment: Tenant's agreement to recognize lender as landlord upon enforcement of security

7. Subordination: Confirmation that the lease is subordinate to the mortgage/charge

8. Representations and Warranties: Key statements of fact by each party

9. Tenant's Covenants: Specific obligations of the tenant under the agreement

10. Notices: Process and requirements for giving formal notices under the agreement

11. Governing Law and Jurisdiction: Confirms Malaysian law applies and jurisdiction of Malaysian courts

12. General Provisions: Standard boilerplate clauses including severability, entire agreement, amendments