Document background
The Lease Subordination Agreement is a critical document in Canadian real estate transactions where multiple interests in a property need to be prioritized. This agreement is commonly used when a property owner seeks new financing or refinancing while having existing tenants, or when new tenants are entering into a lease on a mortgaged property. The document typically includes provisions for subordination, non-disturbance, and attornment (SNDA). Under Canadian law, the Lease Subordination Agreement must comply with both federal regulations and provincial property laws, which can vary by jurisdiction. The agreement ensures that lenders' security interests are protected while providing tenants with continued occupancy rights, making it essential for commercial real estate transactions and property financing arrangements. The document requires careful drafting to balance the interests of all parties and ensure compliance with applicable Canadian legislation.
