Non-Disturbance Agreement Template: Tenant Protection Terms

NON-DISTURBANCE AGREEMENT TEMPLATE FAQ

What is a non-disturbance agreement?

A non-disturbance agreement is a written agreement that protects a tenant’s right to continue occupying leased premises if a lender takes action against the property, such as foreclosure or another enforcement step. It is commonly used when the property owner has a mortgage or deed of trust and the tenant wants written assurance that the lease will continue despite a change in ownership caused by the lender’s rights. The document helps clarify that the tenant’s possession will not be disturbed as long as the tenant continues to comply with the lease.

Why do you need a non-disturbance agreement?

You need a non-disturbance agreement when a tenant wants added protection that a lease will remain effective even if the landlord defaults under a loan secured by the property. It helps reduce uncertainty for the tenant, supports business continuity, and creates a clear written record of the lender’s agreement not to remove the tenant solely because of foreclosure or a similar event. It is especially useful for commercial tenants making a long-term investment in a leased space.

When should you use a non-disturbance agreement?

Use a non-disturbance agreement when leased property is subject to a mortgage, deed of trust, or similar lien and the tenant wants protection before or during the lease term. It is often used together with subordination and attornment terms, especially in commercial leasing, office leases, retail leases, or other situations where the tenant needs stability if the landlord’s lender later takes control of the property. It should ideally be signed before the tenant relies heavily on the location or spends significant money on the premises.

How to write a non-disturbance agreement?

Start by identifying the lender, landlord, tenant, the lease, and the property. Then state the lender’s agreement that the tenant’s possession and lease rights will not be disturbed after foreclosure or transfer of title, so long as the tenant is not in default under the lease beyond any allowed cure period. The document should also explain attornment, any subordination terms, notice requirements, and signatures from all required parties so there is a clear written record of how the lease will be treated.

Can AI Lawyer help if tenants, landlords, and lenders all need to review?

AI Lawyer can help by organizing the agreement into clear sections so each reviewer can quickly find the lease details, lender protections, tenant possession rights, and notice terms. It can also add placeholders for loan references, property descriptions, default language, and signature blocks, making updates easier to track. A consistent structure helps reduce repeated edits and lowers the chance of missing key details like the lease date, foreclosure protection language, or attornment terms before the agreement is signed.