Description
Gain an understanding of the objectives of an SNDA and the practical tips for drafting and negotiating them.
This highly informative topic is designed to enhance your knowledge and understanding of Subordination, NonDisturbance, and Attornment Agreements (SNDAs) as well as Estoppel Certificates which are often ancillary thereto in todays commercial lease environment. The program will discuss the importance of thoroughly reviewing these critical documents and the various provisions within each.
Date: 2024-05-15 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to review and analyze SNDAs more efficiently and cost effectively.
* You will be able to identify the respective rights of the tenant, the lender and the landlord under SNDAs.
* You will be able to discuss and explain why certain itemsprotections should be included or excluded from SNDAs during negotiations from the perspective of the tenant, the lender and the landlord.
* You will be able to explain the importance of having SNDAs and Estoppel Certificates carefully reviewed by counsel.
General Overview
• Letter of Intent/Term Sheet
• Parties Leverage
• General Economic Conditions
• Specific Location of Premises
• Desirability of Particular Property
• Tenants Net Worth/Creditworthiness/Financial Condition
• Economics of Lease (e.g., Rent, Tenants Proportionate Share)
• Historical Perspectives
Basic Concepts
• What Is an SNDA?
• Definitions
• Significance
Subordination Lease Provision
• Automatic (Existing and Future)
• Commercially Reasonable Efforts V. Best Efforts V. Conditioned Upon Obtaining
Lender Perspective/Protections
• Non-Responsibility
• Payment Demand
• Notice of Landlord Default/Cure Rights
• Exculpation/Limitation of Liability
Tenant Perspective/Protections
• Subordinate to the Mortgage V. Subordinate to the Lien of the Mortgage
• Responsibility
• Lender Consents/Approves Lease
• If Tenant Made Party to Action, Indemnification by Lender
• If Requested to Pay Lender, Tenant Not Liable/Landlord Acknowledgment
Landlord Perspective/Protections
• Not Increasing Tenants Rights or Landlords Obligations Under the Lease
• Not Decreasing Landlords Rights or Tenants Obligations Under the Lease
Estoppel Certificate
• What Is It?
• Significance
• Tenant Perspective/Protections
Miscellaneous Issues
• Recordation
• Legal Description Attached
Conclusion and Questions
• Importance
• Not Ministerial/Perfunctory – Should Be Reviewed by an Attorney
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Jan Alan Lewis, Esq.-Cole Schotz P.C.
