Purpose Of Non-Disturbance Agreement


This case shows how important it is for tenants to get a non-interference agreement. A non-dysfunctional tenancy agreement is an agreement between the tenant and the landlord`s lender, which allows the tenant to remain in possession of the rental premises despite possible enforced enforcement action against the landlord. If, in this case, a default agreement had been reached, the result could have been very different. The non-interference contract refers to an agreement between a tenant and the landlord`s lender to ensure that the tenant remains in possession of the rental property despite a enforced action against the landlord. For example, a tenant who thinks he/she is bankrupt in his or her landlord may insist on a non-interference clause, so that the lease will continue in the event of enforced execution. The problem-free party assures tenants that their rights to the premises are kept in their control under certain conditions (“undisturbed”), even if the lessor is late in its loan and the lender excludes. From an executive`s perspective, the primary objective of an NDA is to ensure that the financier, when taking control of the hotel, continues to recognize the manager`s rights under the HMA. This assumes that the financier complies with all the owner`s obligations in the HMA. A non-interference clause is a provision of a mortgage agreement that guarantees the sustainability of a tenancy agreement between the tenant and the landlord in all circumstances. This is mainly to protect the tenant from evacuation by the Mortgagor when the property is isolated from the lender. A non-interference clause ensures that a tenant is not evicted if the landlord goes bankrupt. It is interesting to note that the Tribunal also found that dismissal for breaches of the construction code was not a valid reason for dismissal. However, the termination has been validated because it fulfils the underlying purpose of notifying the tenant of the termination of his tenancy agreement.

Since the termination was effective, the court ordered the second Mortgagee to terminate the tenant`s lease on October 31, 2018, just over six months after the first termination.