Don't Lock Yourself into Specific Bank Forms

February 1, 2006

If you attach your bank's sample form—such as a subordination, nondisturbance, and attornment agreement (SNDA) or estoppel certificate—to your lease as an exhibit, don't require the form you later give the tenant to sign to be identical to the lease's exhibit, says Cleveland attorney Mark B. Schwartz. After all, your bank may later revise its forms. Or you may change banks and your new bank may require a form that's different from the lease's exhibit. So having the tenant sign a form that's identical to the lease's exhibit may no longer be acceptable to your bank, he explains.

If you attach your bank's sample form—such as a subordination, nondisturbance, and attornment agreement (SNDA) or estoppel certificate—to your lease as an exhibit, don't require the form you later give the tenant to sign to be identical to the lease's exhibit, says Cleveland attorney Mark B. Schwartz. After all, your bank may later revise its forms. Or you may change banks and your new bank may require a form that's different from the lease's exhibit. So having the tenant sign a form that's identical to the lease's exhibit may no longer be acceptable to your bank, he explains.

Get more flexibility with bank forms by saying in your lease that any bank form you later give to the tenant to sign will be “substantially similar” to the bank form attached to the lease as an exhibit, says Schwartz. That way, it won't have to be an exact match.

CLLI Sources

Mark B. Schwartz, Esq.: 30100 Chagrin Blvd., #110, Cleveland, OH 44124; (216) 360-0440; hattendor1@aol.com.

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