We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What is a Non Disturbance Agreement and Why It Matters
Definition & Meaning
A non-disturbance agreement is a legal contract between a tenant and a landlord's lender. This agreement ensures that the tenant can continue to occupy the leased property even if the landlord faces foreclosure. Essentially, it protects the tenant's rights to the property, allowing them to remain in possession under specified conditions, regardless of the landlord's financial troubles. Additionally, in the context of sales contracts, a non-disturbance agreement can refer to a clause that protects surface development from interference by mineral exploration when the seller retains mineral rights.
Table of content
Legal Use & context
Non-disturbance agreements are commonly used in real estate and lease negotiations. They are particularly relevant in situations involving commercial leases, where a tenant may be concerned about the stability of their landlord, especially if the landlord is facing bankruptcy or foreclosure. This agreement can be part of broader lease negotiations and is essential for tenants who want to safeguard their occupancy rights. Users can find templates for such agreements through platforms like US Legal Forms, which provide resources drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A tenant operating a retail store signs a non-disturbance agreement with the lender of their landlord. If the landlord defaults on their loan and the lender forecloses, the tenant can continue to operate their business without interruption.
Example 2: A residential tenant fears eviction when their landlord files for bankruptcy. By securing a non-disturbance agreement, the tenant ensures their lease remains valid, allowing them to stay in their home during the foreclosure process. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Non-disturbance agreements are often required for commercial leases to protect tenant rights.
New York
Specific language is often mandated in non-disturbance agreements to ensure enforceability.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you are a tenant concerned about your rights in the event of your landlord's foreclosure, consider negotiating a non-disturbance agreement with your landlord's lender. It may be beneficial to consult with a legal professional to ensure the agreement meets your needs. You can also explore US Legal Forms for templates that can help you draft this important document.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.