Document background
The Non-Disturbance Agreement (NDA) is essential in German commercial real estate transactions where property is both leased and mortgaged. It becomes particularly relevant when a property owner seeks financing while having existing tenants, or when new leases are contemplated for mortgaged property. The agreement addresses the complex intersection of German property law, banking regulations, and tenant rights under the Bürgerliches Gesetzbuch (BGB). The NDA ensures business continuity for tenants while providing clear frameworks for lenders' rights, making it a crucial document for high-value commercial leases, retail locations, and industrial properties. It typically requires careful consideration of German land registration requirements, insolvency laws, and banking regulations, particularly in cases involving multiple lenders or complex financing structures.
