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Attornment And Non Disturbance Agreement

Attornment And Non Disturbance Agreement Template for Philippines

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Key Requirements PROMPT example:

Attornment And Non Disturbance Agreement

"I need an Attornment and Non-Disturbance Agreement for a multi-tenant retail mall in Manila where we're refinancing with a new lender in March 2025; the agreement needs to cover 12 existing tenants and include specific provisions for percentage rent arrangements."

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Document background
The Attornment And Non Disturbance Agreement is a crucial document in Philippine real estate financing and leasing arrangements, typically used when a property owner seeks to mortgage a property that is already leased to tenants or plans to lease a mortgaged property. The agreement serves multiple purposes: it protects tenants from losing their lease rights if the lender forecloses on the property, commits the lender to honor the lease terms, and ensures the tenant will recognize the lender as their new landlord in case of foreclosure. This tripartite agreement is particularly important in the Philippine context, where it helps facilitate commercial property financing while providing security for all parties involved. The document must comply with Philippine property laws, banking regulations, and the Civil Code, particularly in relation to real estate transactions and security interests.
Suggested Sections

1. Parties: Identifies all parties to the agreement: typically the Landlord, Tenant, and Lender/Mortgagee

2. Background: Recitals explaining the lease arrangement, mortgage/security interest, and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement, including Property, Lease, Mortgage, and Security Documents

4. Acknowledgment of Lease: Confirmation of the existing lease terms and tenant's possession rights

5. Attornment: Tenant's agreement to recognize the lender as landlord upon enforcement of security

6. Non-Disturbance: Lender's commitment not to disturb tenant's possession rights upon foreclosure

7. Landlord's Consent: Landlord's agreement to the attornment and non-disturbance arrangements

8. Priority of Mortgage: Confirmation of the priority of the mortgage over the lease

9. Notice Requirements: Procedures for serving notices between parties

10. Governing Law and Jurisdiction: Specifies Philippine law as governing law and relevant jurisdiction

11. Execution: Signature blocks and execution formalities

Optional Sections

1. Rent Payment Provisions: Used when specific arrangements for rent payment to lender need to be established post-enforcement

2. Insurance and Casualty: Include when specific insurance arrangements need to be coordinated between all parties

3. Assignment and Subletting: Include when there are specific restrictions or permissions regarding assignment or subletting

4. Modifications to Lease: Include when certain lease modifications require lender consent

5. Estoppel Provisions: Include when parties need to certify certain facts about the lease arrangement

6. Remedies: Include when specific remedies need to be outlined for breach of the agreement

7. Registration Requirements: Include when the agreement needs to be registered with Philippine authorities

Suggested Schedules

1. Schedule A - Property Description: Legal description of the property including lot numbers, boundaries, and title details

2. Schedule B - Lease Details: Key terms of the lease including date, parties, and essential provisions

3. Schedule C - Mortgage Details: Details of the mortgage or security interest including registration information

4. Schedule D - Permitted Use: Description of permitted use of the property under the lease

5. Appendix 1 - Property Plans: Floor plans or site plans of the leased premises

6. Appendix 2 - Special Conditions: Any special conditions or requirements specific to the property or arrangement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Real Estate

Banking and Finance

Commercial Property

Retail

Industrial

Office Space

Hospitality

Healthcare

Manufacturing

Logistics

Relevant Teams

Legal

Real Estate

Property Management

Risk Management

Commercial

Asset Management

Facilities Management

Compliance

Finance

Operations

Relevant Roles

Real Estate Lawyer

Property Manager

Commercial Lease Manager

Bank Manager

Legal Counsel

Real Estate Development Manager

Asset Manager

Facilities Manager

Risk Manager

Commercial Director

Property Development Director

Leasing Manager

Chief Legal Officer

Real Estate Investment Manager

Industries
Civil Code of the Philippines (Republic Act No. 386): Primary legislation governing contracts, obligations, and property rights in the Philippines. Particularly relevant are Book IV on Obligations and Contracts, and Book V on Property, Ownership, and its Modifications.
Property Registration Decree (Presidential Decree No. 1529): Governs the registration of real estate and real estate-related documents, including lease agreements and security interests in real property.
Rent Control Act of 2009 (Republic Act No. 9653): Provides the framework for rental arrangements and tenant protections, which may affect the attornment provisions of the agreement.
General Banking Law of 2000 (Republic Act No. 8791): Relevant for provisions relating to mortgages and security interests held by banking institutions in real property.
Real Estate Investment Trust Act of 2009 (Republic Act No. 9856): May be relevant if the property is part of a REIT structure, affecting the non-disturbance provisions and property management arrangements.
Electronic Commerce Act (Republic Act No. 8792): Important for the execution and validity of electronic documents and signatures if the agreement is to be executed electronically.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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