Non-Disturbance Clauses in Leases

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Non-Disturbance Clauses in Leases

When you choose a location for your future dental office, you’ll also be picking your future landlord, at least initially. Over time, your landlord may change. A possible case involving a change of landlord is in the case of foreclosure. This happens when the landlord’s lender takes over the lease after the landlord failed to pay the lender. If this happens, you’ll be thankful if you anticipated this event and negotiated a “non-disturbance” provision into your lease.

A non-disturbance provision states that if the landlord’s lender forecloses and assumes your lease, then that lender will honor the terms of your lease. There are usually conditions involved in order for non-disturbance to be effective, such as you not being in default under the lease. A well-written non-disturbance provision will make a landlord foreclosure as painless as possible for you, so be sure that you consult an attorney to make sure that your lease has you covered.

Categories: Letters of Intent, Office Leases, Real Estate, Transition Issues