Attornment (from French ''tourner'', "to turn"), in English real
property law
Property law is the area of law that governs the various forms of ownership in real property (land) and personal property. Property refers to legally protected claims to resources, such as land and personal property, including intellectual prope ...
, is the acknowledgment of a new lord by the tenant on the
alienation of land. Under the
feudal
Feudalism, also known as the feudal system, was a combination of legal, economic, military, cultural, and political customs that flourished in Middle Ages, medieval Europe from the 9th to 15th centuries. Broadly defined, it was a way of struc ...
system, the relations of
landlord
A landlord is the owner of property such as a house, apartment, condominium, land, or real estate that is rented or leased to an individual or business, known as a tenant (also called a ''lessee'' or ''renter''). The term landlord appli ...
and tenant were to a certain extent reciprocal. So it was considered unreasonable to the tenant to subject him to a new lord without his own approval, and it thus came about that alienation could not take place without the consent of the tenant. Attornment was also extended to all cases of
lessee
A lease is a contractual arrangement calling for the user (referred to as the ''lessee'') to pay the owner (referred to as the ''lessor'') for the use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial ...
s for life or for years. The necessity for attornment was abolished by the
Administration of Justice Act 1705.
In
mortgage
A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...
s, an attornment clause is a clause whereby the mortgagor attorns tenant to the mortgagee, thus giving the mortgagee the right to
distrain, as an additional security.
As used in modern legal transactions, the term ''attornment'' refers to an acknowledgment of the existence of the relationship of landlord and tenant.
A tenant often has the duty under the tenant's lease, particularly in commercial leases, to provide an attornment upon request, and is required by a creditor or potential buyer of property from the landlord to establish the nature of existing
encumbrance
An encumbrance is a third party's right to, interest in, or legal liability on property that does not prohibit the property's owner from transferring title (but may diminish its value). Encumbrances can be classified in several ways. They may be f ...
s on and income streams flowing from a property, as an element of the
due diligence
Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.
Due diligence ...
process associated with the transaction. Frequently, a tenant must declare the existence of any outstanding disputes with the landlord at the time the attornment is executed and waives any dispute not declared at that time.
A request for an attornment from a tenant which is refused can be used by a landlord as a basis for establishing grounds for
eviction
Eviction is the removal of a Tenement (law), tenant from leasehold estate, rental property by the landlord. In some jurisdictions it may also involve the removal of persons from premises that were foreclosure, foreclosed by a mortgagee (often ...
on the grounds of insecurity that the lease will be honored, or the existence of an actual
case or controversy suitable for resolution in a
declaratory judgment
A declaratory judgment, also called a declaration, is the legal determination of a court that resolves legal uncertainty for the litigants. It is a form of legally binding preventive by which a party involved in an actual or possible legal ma ...
action.
Attornment in commercial real estate is generally used in the context of a subordination, non-disturbance and attornment agreement (SNDA), which protects both the tenant and the lender in the event the landlord defaults on its commercial lending obligations. The lease remains in full force and effect.
References
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Real property law
English property law
Legal history of England