The webinar is led by an expert in advising real estate lawyers on subordination, non-disturbance, and attornment
agreements, Michael Kuhn, Jackson Walker LLP, and focuses on:
imposing procedural step of attornment
in pursuit of an identical goal.
Tenants occupying without estoppel and attornment
agreements may be readily removable, but a better idea is sometimes to buy out tenant's "improvements" if an adverse reaction or publicity is deemed likely.
Additionally, and in lieu of a blanket recognition, the Fee Owner may agree to enter into a recognition, non-disturbance and attornment
agreement with a Subtenant who meets the same criteria noted above (a "Recognition Agreement").
Similarly, an attornment
provision should be added, providing that the tenant will attorn to any new owner of the property after a foreclosure, and that the tenant will provide estoppel certificates and minor lease amendments where necessary to satisfy a lender.
Therefore, in the absence of attornment
language, a mortgagee can lose a valuable tenant if it forecloses.