What is SNDA (Subordination, Non-Disturbance, and Attornment)?

Definition

An SNDA (Subordination, Non-Disturbance, and Attornment) is a three-party agreement among a landlord, tenant, and the landlord's lender that addresses the relationship between the lease and the mortgage. Subordination means the lease is junior to the mortgage; non-disturbance assures the tenant their lease will survive a foreclosure; and attornment means the tenant agrees to recognize the new owner as landlord. SNDAs are relevant to CAM reconciliation during property ownership transitions because they establish whether existing CAM terms, prepaid estimates, and reconciliation obligations transfer to the new owner. Property controllers must ensure that mid-year ownership changes preserve accurate CAM accounting and that reconciliation statements correctly reflect expenses under both the prior and current ownership periods.