SNDA stands for Subordination, Non-Disturbance, and Attornment; what is its primary role?

• A. Subordination, Non-Disturbance, and Attornment; protects tenant if landlord defaults and ensures tenancy continues under lender.
• B. Subdivision, Non-disclosure, and Attachment.
• C. Subordination, Non-disturbance, and Audit.
• D. Supervision, Non-Disturbance, and Assignment.

Answer: (A)

The main idea is that a SNDA creates a three‑party agreement among tenant, landlord, and lender to align lease rights with financing. Subordination means the tenant’s lease is subordinate to the lender’s mortgage, so the mortgage takes precedence over the lease. Non-disturbance protects the tenant by ensuring they can stay in the premises under the current lease if the landlord defaults and the lender forecloses. Attornment requires the tenant to recognize the lender (or new property owner) as the landlord after foreclosure, continuing the tenancy under the same terms. The primary role, then, is to preserve the tenant’s occupancy and rent flow when the property changes hands due to financing, while giving the lender a clear security position. Other options mix unrelated terms that don’t address the lease–mortgage relationship or the protections intended for tenants and lenders.