Non-disturbance: Overview, definition, and example
What is non-disturbance?
Non-disturbance is a legal concept typically used in real estate or leasing agreements. It refers to an assurance or clause in a contract that ensures the tenant's rights to occupy and use the property will not be disturbed or interfered with, especially if the property changes ownership or is subject to a legal dispute. The non-disturbance provision protects the tenant from eviction or other disruptions, as long as the tenant continues to fulfill the terms of the lease.
For example, a landlord may agree that a tenant will not be evicted or have their lease terminated even if the property is sold to a new owner, provided that the tenant adheres to the lease terms.
Why is non-disturbance important?
Non-disturbance provisions are important because they provide security and stability for tenants, ensuring that their right to occupy a property is not jeopardized due to changes in ownership or external circumstances. This is especially important for long-term tenants who have invested in making the space suitable for their business or personal use. For landlords, offering non-disturbance assurances can make a property more attractive to potential tenants, particularly in commercial leasing.
For tenants, a non-disturbance clause ensures peace of mind, knowing that they won’t lose their right to the property unexpectedly. For landlords, it helps build trust and foster long-term rental relationships.
Understanding non-disturbance through an example
Imagine a retail business leases a storefront in a building that is being sold to a new owner. The new owner may want to continue renting the space to the existing tenant, but the tenant's lease could be at risk unless there is a non-disturbance agreement in place. If a non-disturbance clause is included in the lease, the tenant can continue occupying the space without fear of eviction due to the property’s change in ownership.
In another example, a commercial tenant agrees to a long-term lease in an office building. The lease includes a non-disturbance provision ensuring that, even if the building is foreclosed upon, the tenant will not be disturbed and will be able to continue renting the space as long as they pay rent and comply with the lease.
Example of a non-disturbance clause
Here’s how a non-disturbance clause might appear in a contract:
"In the event that the Landlord sells or transfers the Property to a third party, the Tenant’s right to occupy and use the leased space shall not be disturbed, provided the Tenant is not in default under the terms of the Lease. The new owner shall honor all terms and conditions of the existing Lease agreement for the duration of its term."
Conclusion
Non-disturbance clauses are critical for ensuring that tenants' rights to occupy a property are protected, especially in situations involving changes in ownership or other legal matters. For tenants, they offer peace of mind; for landlords, they help make properties more attractive to potential tenants and support long-term tenancy.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.