Document background
The Non-Disturbance Agreement is essential in Australian commercial property transactions where a property is both leased and mortgaged. It becomes particularly relevant when a landlord seeks new financing or refinancing for a property with existing tenants, or when new tenants are entering into a lease where the property is already mortgaged. The agreement provides crucial protection for tenants by ensuring their lease rights survive a landlord's default, while also facilitating landlords' ability to obtain financing by addressing lenders' security concerns. This three-way agreement typically includes detailed provisions about the rights and obligations of all parties, specifically addressing scenarios of default, foreclosure, and property transfer. Under Australian law, the agreement must comply with state-specific property legislation and the Real Property Act, while also adhering to general contract law principles.
