Document background
The Attornment And Non-Disturbance Agreement is a crucial document in Indonesian commercial real estate transactions where a property is both mortgaged to a lender and leased to tenants. It becomes necessary when a landlord obtains financing secured against a property that is (or will be) leased to tenants. The agreement serves three main purposes: (1) protecting the tenant's right to continue occupying the property even if the lender forecloses on the landlord's property, (2) ensuring the lender's security interest is preserved, and (3) establishing the tenant's obligation to recognize the lender as the new landlord in case of foreclosure. The document must comply with Indonesian law requirements, particularly the Civil Code, Basic Agrarian Law, and regulations concerning security interests over land. It typically requires notarization and registration with relevant Indonesian authorities to be fully effective.
