nondisturbance clause

nondisturbance clause definition - business

nondisturbance clause

A provision in a mortgage that existing leases will be permitted to continue in the event the owner defaults on the loan so long as the tenants fulfill their obligations under the lease. A nondisturbance clause is an important consideration for a tenant who might otherwise remain in lease limbo in the event of a default by the property owner.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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