Define "non-disturbance agreement" in the context of leases.

A non-disturbance agreement is fundamentally an assurance provided to tenants that they will not be evicted or disturbed in their tenancy despite potential issues that may arise with the property owner's mortgage, such as default. This type of agreement is crucial in maintaining the stability of a leasehold interest for tenants, as it protects their rights and investment in the leased property.

In scenarios where the landlord may face foreclosure or similar financial difficulties, the non-disturbance agreement ensures that the tenant can continue to occupy the premises under the terms of their existing lease. This means that even if the landlord is no longer able to fulfill their obligations due to financial strain, the tenant's lease remains intact, supporting their occupancy and minimizing disruption.

This assurance can be particularly important in commercial leases, as businesses rely on the continuity of their space to operate effectively. By having a non-disturbance agreement in place, tenants can have peace of mind that their lease will not be terminated unexpectedly due to the owner's financial failings.