The Dirt Dictionary: ‘R’ is for Recognition Agreement

Last month we talked about the SNDA (subordination, nondisturbance and attornment) agreement, a device by which a tenant can protect its leasehold interests from termination by a defaulting landlord’s foreclosing lender. Today we look at a sister agreement, this one in the context of the landlord-tenant-subtenant relationship.

The recognition agreement, sometimes called “sublease nondisturbance agreement,” is defined as an agreement between the landlord and the subtenant. Should the sublandlord (the tenant under the lease) default, the landlord will not disturb the subtenant’s right to remain in possession under its sublease. The subtenant then recognizes the landlord and becomes a direct tenant of the landlord. The sublease creates two distinct legal relationships between the sublandlord and the subtenant (one in real property law and one in contract law) and if the lease is terminated for any reason, the sublease is automatically terminated.

Click here to read the full article in The Commercial Observer.

Jeffrey A. Margolis, Principal

11 East 44th Street (between Fifth Avenue and Madison Avenue) Suite 1505
New York, New York 10017
Phone: (212) 490-0900
Fax: (212) 490-0700
mail@margolislawfirm.com

{This is considered Attorney Advertising by some Bar Associations. Prior results do not imply future similar results. Communication does not imply Attorney-Client relationship.}