Document background
The Non-Disturbance Agreement is essential in Indian commercial real estate transactions where a property is or will be subject to both a mortgage and a lease. This document becomes particularly relevant when tenants require security of tenure in mortgaged properties, especially in commercial leases of significant value or duration. The agreement protects the tenant's right to continue occupying the premises under the original lease terms, even if the landlord defaults on their mortgage obligations and the lender takes possession. Used primarily in commercial real estate transactions, it provides certainty to all parties: the tenant maintains their leasehold rights, the lender preserves the property's income stream, and the landlord can successfully lease their mortgaged property. The agreement must comply with Indian contract law, property law, and registration requirements, often requiring registration under the Registration Act, 1908.
