If a property is sold, what effect does a non-disturbance clause have on the tenant?

A non-disturbance clause is a provision typically found in leases that assures tenants that their rights to occupy the leased premises will be protected in the event of a property sale or if the property is encumbered by a mortgage. The purpose of this clause is to provide stability and security to the tenant, even when ownership of the property changes.

When a non-disturbance clause is in effect, it ensures that the tenant can retain their rights to the lease, given that certain conditions are met, such as continuing to fulfill their obligations under the lease agreement. This means that even if the property is sold to a new owner, the tenant's lease remains valid and in force, preventing any disruption of their tenancy.

Therefore, the presence of a non-disturbance clause gives tenants significant protection and peace of mind, maintaining the integrity of their lease rights. This is crucial for tenants as it safeguards them from being forced to vacate simply due to changes in property ownership or financing situations, as long as they comply with the terms of their lease.