When you’re building a utility-scale renewable project, land control is your foundation. But once financing enters the picture, lenders want more than a signed lease—they want guarantees. That’s where the SNDA agreement becomes mission-critical.
Short for Subordination, Non-Disturbance, and Attornment, the SNDA protects your right to stay on the land — even if the property gets tangled in someone else’s financial trouble.
An SNDA is a tri-party agreement between you (the developer/tenant), the landowner (your landlord), and the lender (usually the landowner’s mortgage holder).
Here’s how each piece works:
Subordination
You agree your lease is secondary to the lender’s mortgage. If there’s a foreclosure, the lender’s interests take precedence.
Non-Disturbance
The lender promises not to disturb your lease—even in foreclosure. This protects your project and lets it keep operating.
Attornment
You agree to recognize the lender (or whoever takes over) as your new landlord if the land changes hands.
In short: an SNDA ensures your lease — and your project — survives a foreclosure.
Lenders and buyers expect clear, uninterrupted rights. If your lease could be wiped out by a landowner’s default, your project becomes a financing nightmare.
Without an SNDA, you could face:
🚫 Loss of site control
💸 Financing delays or denials
❌ Failed sales or acquisitions
That’s not just a paperwork problem — it’s a project risk.
The earlier, the better. Ideally, start the SNDA process when you’re finalizing your lease.
Delaying it until financing or sale can lead to:
Bottlenecks
Legal hurdles
Missed deadlines
If the property already has a mortgage, get lender contact info upfront. If a mortgage is added later, make SNDA part of your tracking process.
✅ Check for Existing Mortgages Early
Include it in your title review and site control checklist.
✅ Include SNDA Language in Your Lease
Make it clear that securing an SNDA is part of the deal—not an afterthought.
✅ Engage Legal Support
Work with attorneys who understand renewables and lender concerns. Every detail matters.
✅ Keep It Buyer-Ready
Organize your signed SNDA in your diligence folders for lenders, title agents, and buyers.
An SNDA agreement isn’t just legal insurance. It’s your backup plan for long-term project stability and financing success.
Ready to secure your project from the ground up?
Let TerraPro Solutions help.
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