Document background
The Non-Disturbance Agreement is a critical document in Canadian commercial real estate transactions where a property is subject to both a mortgage and a lease. It becomes particularly relevant when tenants require assurance that their lease rights will be preserved if the landlord defaults on their mortgage obligations. The agreement typically includes detailed provisions about the relationships between all three parties (tenant, landlord, and lender), specific rights and obligations under various scenarios, and the hierarchy of interests in the property. Key considerations under Canadian law include provincial property legislation, security interests, and commercial tenancy requirements. The document is especially important for tenants making significant investments in leased premises or entering into long-term lease commitments. It provides crucial protection for business continuity while ensuring lenders maintain their security rights in the property.
