What is Attornment?
Attornment is the act of allowing authority or jurisdiction to a party even though no legal rights exist. Attornment most regularly associates with laws regulating real property and it is designed to acknowledge the relationship between the individuals in a trade. For instance, attornment may occur when a tenant rents an apartment only to have the owner change during the lease. The attornment agreement does not generate a new set of rights for the owner unless the tenant signs the contract. If the tenant refuses to sign, the landlord could be able to use this as grounds for eviction.
Commercial leases usually include a subordination, non-disturbance and attornment agreement. This is a contract between a tenant and landlord that represents particular rights of the tenant, the property owner, and other third parties such as the landlord’s lender or investors of the home.
Attornment in a business lease is when a tenant agrees to a new landlord of the property as the new owner. The purpose of the attornment clause in a subordination, non-disturbance and attornment agreement is to commit the resident to acknowledge any new owner of the property as its landlord. The primary goal of the term is to assure that the tenant remains to pay rent to the new landlord throughout the remaining time of the lease, even if the property is foreclosed or sold.