Nondisturbance Clause

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1. an agreement in mortgage contracts on income-producing property that provides for the continuation of leases in the event of loan foreclosure.


Example: The tenant was concerned that he would be evicted if the landlord was foreclosed on. He insisted on a nondisturbance clause so the lease would continue in the event of foreclosure.


2. an agreement in a sales contract, when the seller retains mineral rights, that provides that exploration of minerals will not interfere with surface development.


Example: When the seller negotiated the oil and gas lease , she was assured by the oil company that the property could be conveyed with a nondisturbance clause.

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A type of clause in a mortgage contract. The nondisturbance clause ensures that the rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon. A nondisturbance clause ensures that a tenant will not be evicted in the event that the landlord goes bankrupt.

Investopedia Says:

A nondisturbance clause has a different application for mineral rights. In this case, the clause provides that the mineral extraction process does not interfere with any surface development of the land. For example, an oil company that drills wells on a piece of property may not interfere with the construction of a building or other developments on that property.

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