Nondisturbance Clause

1. Agreement in mortgage contracts on income-producing property that provides for the continuation of Leases in the event of loan Foreclosure.

2. Agreement in a sales contract, when the seller retains Mineral Rights, that provides that exploration of minerals will not interfere with surface development.

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 went Bankrupt. 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.