Document background
The Non Disturbance Agreement (NDA) is a crucial document in Philippine commercial real estate transactions where a property is both leased and mortgaged. It becomes particularly important when a landlord seeks financing using a mortgaged property that already has tenants, or when new tenants are considering leasing mortgaged property. The agreement protects tenants' interests by ensuring their lease remains valid even if the property is foreclosed, while also providing lenders with assurance about the stability of the property's income stream. Under Philippine law, particularly the Civil Code and Property Registration Decree, this agreement needs to be properly executed and potentially registered to ensure enforceability. The document typically includes detailed provisions about the rights and obligations of all parties, procedures for foreclosure scenarios, and specific requirements for notices and communications.
