What is an Attornment Clause in a Lease?
An attornment clause in a lease requires a tenant to acknowledge a new owner as their landlord if the property is sold or transferred. This provision keeps the lease agreement intact during ownership changes. For tenants and landlords in Fort Lauderdale and Broward County, understanding how an attornment clause in a lease works can prevent disputes and protect your rights when commercial properties change hands.
What is an Attornment Clause in a Lease?
An attornment clause in a lease is a provision that defines the relationship between a tenant and a new landlord when the property changes ownership. The tenant agrees to recognize the new owner as their landlord. They also agree to continue paying rent under the existing lease terms. This maintains continuity of the lease regardless of who holds title to the property. In Florida landlord-tenant law, this clause plays a vital role in protecting both parties during commercial property transactions.
Why is an Attornment Clause Important?
The attornment clause matters because property ownership changes more often than tenants expect. When a commercial building in Fort Lauderdale sells, tenants need to know their lease is still valid. This clause provides several protections:
- Tenant protection: Lease terms remain unchanged even if ownership changes hands, giving tenants security
- Landlord stability: Property owners maintain a continuous income stream as tenants remain bound to existing lease terms
- Smoother transactions: Attornment clauses help avoid disputes between tenants and new property owners during ownership transfers
- Lender protection: Commercial lenders often require lease attornment provisions before financing a property purchase
How Attornment Clauses Work in Florida
In Florida, the attornment clause Florida legal framework falls under the broader landlord-tenant statutes. You can reference Florida Statutes Chapter 83 for detailed provisions on landlord-tenant relationships. When a property is foreclosed or sold, the tenant attornment agreement ensures the lease survives the transfer. Without this clause, a new owner could theoretically terminate existing leases, leaving tenants without protection. For commercial tenants in Fort Lauderdale, this protection is especially valuable in buildings that may be resold or refinanced during the lease term.
Attornment Clauses in Fort Lauderdale Commercial Real Estate
Fort Lauderdale and Broward County have an active commercial real estate market where properties frequently change hands. A tenant attornment agreement becomes especially relevant in these transactions. When a commercial building sells, the new owner steps into the shoes of the previous landlord. The attornment clause makes this transition legally binding without requiring a new lease. For property owners going through real estate closings in Fort Lauderdale, having this clause in place can make the sale more attractive to buyers and lenders.
In one case involving a Broward County retail plaza, the buyer discovered mid-transaction that several commercial leases lacked attornment language. The sale nearly stalled because the lender required lease attornment provisions before approving financing. An attorney had to negotiate amendments with each tenant before the deal could close. This is a common scenario in South Florida commercial real estate.
Attornment vs SNDA: Understanding the Difference
An attornment clause is often paired with subordination and non-disturbance provisions to form what is known as an SNDA agreement. The attornment clause in a lease handles the tenant’s acknowledgment of a new landlord. A subordination clause gives the lender priority over the tenant’s lease. A non-disturbance clause protects the tenant from being evicted if the landlord defaults on the mortgage. Together, these three provisions create a balanced framework for all parties. You can learn more about SNDAs from Nolo’s guide to commercial lease SNDA provisions. If you need help negotiating these terms, a real estate contract review attorney can evaluate your lease before you sign.
When Disputes Arise Over Attornment Clauses
Disputes over attornment clauses typically occur when a tenant refuses to acknowledge a new landlord. This can happen in foreclosure situations or when a property is sold without proper notice to tenants. In these cases, the new owner may need to pursue legal action to enforce the attornment clause and compel the tenant to honor the lease. These disputes often require real estate litigation in Broward County to resolve. The American Bar Association’s Real Property section provides additional resources on lease enforcement and commercial tenancy issues.
Frequently Asked Questions
| Question | Answer |
|---|---|
| What is an attornment clause in a lease? | A lease provision where the tenant agrees to recognize a new property owner as their landlord if ownership changes. |
| Why is an attornment clause important in Fort Lauderdale? | It ensures continuity of lease terms during property transfers, offering stability to both tenants and landlords. |
| How does an attornment clause protect tenants? | It guarantees that lease terms remain unchanged despite property ownership changes, preventing sudden eviction or rent increases. |
| What is an SNDA agreement? | A subordination, non-disturbance, and attornment agreement that balances the rights of tenants, landlords, and lenders. |
| Can a tenant refuse to attorn to a new landlord? | If the lease contains an attornment clause, the tenant is legally bound to acknowledge the new owner and cannot refuse. |
Local Resources in Fort Lauderdale and Broward County
| Resource | Details |
|---|---|
| Broward County Property Appraiser | Visit Website |
| Fort Lauderdale City Hall | Visit Website |
| Broward County Clerk of Courts | Visit Website |
Get Legal Help With Lease Agreements in Fort Lauderdale
If you are dealing with a lease dispute or need help understanding an attornment clause in a lease, professional legal guidance can protect your interests. Hughes Real Estate Law serves clients throughout Fort Lauderdale and Broward County. Contact us at (954) 256-5125 or visit our office at 1141 SE 2nd Ave, Fort Lauderdale, FL 33316.