Document background
The Attornment And Non Disturbance Agreement is a crucial document in Saudi Arabian commercial real estate transactions where a property is both leased and subject to financial security. It becomes necessary when a lender takes security over a property that has (or will have) tenants, ensuring that the interests of all parties are protected under Saudi law and Sharia principles. The agreement typically includes provisions for the tenant to recognize the lender as landlord in case of security enforcement, the lender's commitment not to terminate the lease upon enforcement, and various administrative provisions. This document is particularly important in Saudi Arabia's growing commercial real estate sector, where international and domestic financing practices must align with local legal requirements. It provides certainty for tenants regarding their continued occupation, assurance for lenders about their security, and clarity for landlords about the interaction between their financing and leasing arrangements.
