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Non Disturbance Agreement

Non Disturbance Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Non Disturbance Agreement

"I need a Non-Disturbance Agreement for a multi-tenant commercial building in Dubai Media City, where ABC Bank is the mortgagee and we have 5 existing corporate tenants; the agreement needs to be compliant with TECOM regulations and include specific provisions for technology companies."

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Document background
The Non-Disturbance Agreement serves as a critical instrument in UAE real estate transactions where properties are both mortgaged and leased. This document becomes essential when a property owner has obtained financing secured by a mortgage while also having tenants occupying the property. The agreement ensures that if the lender forecloses on the property or enforces its security, the tenant's lease rights will be preserved, providing crucial protection for all parties involved. Governed by UAE federal laws including the Civil Code and specific emirate-level real estate regulations, the agreement typically includes detailed provisions about the rights and obligations of each party, notice requirements, and procedures for various scenarios such as default or property transfer. It's particularly relevant in commercial real estate transactions and large-scale residential developments where institutional lending is involved.
Suggested Sections

1. Parties: Identification of all parties to the agreement: Landlord, Tenant, and Lender/Mortgagee, including full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement, including Property, Lease, Mortgage, Security Interest, and Foreclosure

4. Non-Disturbance Covenant: Core provision establishing that the tenant's lease rights will not be disturbed by any foreclosure or enforcement of the mortgage

5. Recognition of Lease: Lender's acknowledgment of the lease and agreement to honor its terms post-foreclosure

6. Attornment: Tenant's agreement to recognize the lender or any subsequent purchaser as landlord in case of foreclosure

7. Rent Payment Provisions: Specifications for rent payment procedures, especially in case of landlord default

8. Notice Requirements: Procedures for serving notices between parties and response timeframes

9. Term and Termination: Duration of the agreement and circumstances under which it may terminate

10. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

11. Execution: Signature blocks for all parties and attestation requirements

Optional Sections

1. Subordination: Include when the lease needs to be explicitly subordinated to the mortgage, common in complex commercial arrangements

2. Estoppel Provisions: Add when parties need to confirm certain facts about the lease and property status

3. Insurance and Casualty: Include for high-value commercial properties where insurance arrangements need specific attention

4. Assignment and Subletting: Add when specific restrictions or permissions regarding assignment need to be addressed

5. Modifications to Lease: Include when certain lease terms need to be modified as part of the NDA

6. Lender's Rights to Cure: Add when giving specific rights to the lender to cure landlord defaults

7. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property including title deed details

2. Schedule 2 - Lease Summary: Key terms of the existing lease including dates, rent, and special conditions

3. Schedule 3 - Mortgage Details: Summary of the mortgage or security interest including registration details

4. Appendix A - Form of Notice: Template for notices to be served under the agreement

5. Appendix B - Required Authorizations: List of required corporate authorizations and government approvals

6. Appendix C - Power of Attorney: If applicable, POA authorizing certain actions under the agreement

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions









































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Relevant Industries

Real Estate

Banking & Finance

Commercial Property

Retail

Hospitality

Office Space

Industrial & Warehousing

Mixed-Use Development

Healthcare Facilities

Educational Institutions

Relevant Teams

Legal

Real Estate

Finance

Risk & Compliance

Operations

Asset Management

Property Management

Facilities Management

Investment

Corporate Affairs

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Corporate Lawyer

Finance Manager

Leasing Manager

Asset Manager

Investment Manager

Commercial Director

Risk Manager

Compliance Officer

Real Estate Director

Facilities Manager

Operations Manager

Portfolio Manager

Industries







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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