Attornment And Non Disturbance Agreement Template for Singapore

An Attornment And Non Disturbance Agreement is a critical document in Singapore commercial property transactions that balances the competing interests of landlords, tenants, and lenders. This tri-party agreement ensures your lease remains valid and enforceable even when the property is subject to mortgage financing or foreclosure proceedings.

When do you need this document?

You need this agreement when entering into a commercial lease on mortgaged property in Singapore. It's particularly essential if you're a tenant signing a long-term lease in a shopping center, office building, or commercial development where the landlord has existing mortgage obligations. Lenders typically require this agreement before approving property financing to ensure their security interests take priority over tenant rights. The document becomes crucial during property refinancing, when existing leases must be subordinated to new mortgage terms, or when purchasing commercial property with existing tenancies.

Key legal considerations

The agreement contains three fundamental components that protect all parties' interests. The subordination clause establishes that your lease rights are secondary to the lender's mortgage, meaning the mortgage was recorded first and takes legal priority. The non-disturbance provision guarantees that if the landlord defaults and the lender forecloses, your lease will remain valid and you can continue occupying the premises under the same terms. The attornment clause requires you to recognize any new owner (including the lender after foreclosure) as your landlord and continue paying rent to them. These provisions must comply with Singapore's privity principles, which govern the transfer of contractual obligations between parties.

Legal requirements in Singapore

Under Singapore law, this agreement must comply with the Civil Law Act and Conveyancing and Law of Property Act requirements for valid property contracts. The document must clearly identify all parties and their respective interests in the property, with proper legal descriptions of the leased premises. Registration requirements under the Land Titles Act may apply depending on the lease term and property type. The agreement must address priority of interests rules established under Singapore common law, ensuring the subordination provisions are legally enforceable. All parties must have proper legal capacity to enter the agreement, and the terms must not violate any provisions of the existing lease or mortgage documents. The document should include specific provisions addressing Singapore's landlord-tenant legal principles to ensure enforceability in local courts.