KLE College of Law, 4th Floor, Plot No 29, Sector 01, Kalamboli, Navi Mumbai – 410218.

ASSIGNMENT-1
NAME: VISHAL VIRENDRA SHARMA
CLASS: TY BLS LL.B
ROLL: NO: 10

SUBJECT: DPC - I
TITLE: Explain the relevant provisions of attornment and Draft
a letter of attornment with the details given herein below. You are
the old owner and Mr. Sumit Chavan is your tenant since last 2
years and you have to inform Mr. Sumit about the purchase of
your residential premises by Mr. Rajendra Gharat and Mrs. Usha
Gharat. The sale deed was executed on 23rd December 2021 and
the rent from the month of Janurary 2022 is to be given to new
owner. Kindly use your own address as residential premises.

SUBMITTED TO: Prof- RUCHIRA HALLI

Introduction
In real property law, the term attornment agreement has been a household term. It often refers to when
a tenant acknowledges a new owner of the property as their new landlord. Also, a letter of attornment is
a notice from a landlord to an occupant that the property has been sold. Hence, directing the tenant to
pay rent to the new owner. However, this article will discuss more on the meaning, examples, and also
letter of attornment.
Without further all do, let’s get started by knowing the meaning and give an example of attornment.

Attornment Meaning
Attornment exists when a tenant recognizes a new owner of the property as their new landlord. In the
case of hands-changing commercial properties, an attorney clause in a Subordination, Non-disturbance,
and Attorney Arrangement (SNDA) enable the tenant to accept a new owner as their landlord and
continue to pay rent not minding whether the properties change hands on a regular sale or a foreclosure.
For example, if an occupant rents an apartment only to have the owner modify the contract, an attornment
can occur.
The SNDA clause states that if ownership changes, the new owner must replace the former owner in the
lease. And must also assume all the rights and obligations of the previous owner. The clause also dictates
that tenants should continue paying rent irrespective of who owns the apartment.
Having known the meaning an seen an example of attornment, let’s discuss briefly on attornment
agreement.

Attornment Agreement
Attornment is most commonly connected with real property laws. However, it is meant to acknowledge
the relationship between the parties in a transaction. The attornment agreement does not form a new set
of rights for the owner except the occupant signs it. However, the landlord may be able to use an
occupant’s refusal to sign as grounds for eviction.
An Attornment Agreement helps define the interests of all the parties in a mortgage rental property.
Generally, the agreement says that the landlord’s lender – not the occupant- has the highest claim to the
property. Therefore, the occupant’s rights are subordinate, which is why the agreement is also sometimes
seen as a Subordination Agreement. The lender can agree to accept the terms of the lease even if the
landlord breaches the mortgage. However, the occupant must remain current on their rental payments.

Letter of Attornment
A letter of attornment is a notice from a landlord to an occupant that the property has been sold. Hence,
directing the tenant to pay rent to the new owner.
Attornment Agreement Format
A lease, an agreement for a lease, by assignment constitutes the legal relationship of landlord and tenant.
it is still common to insert in mortgage deeds what is called an” attornment clause,” by which the
mortgagor “attorns” tenant to the mortgagee, and the latter thereupon acquires a power of distress as
additional security.
” Attornment,” or the agreement by a tenant to become tenant to a new landlord, is a term to indicate a
recognition of the existence of the relationship of landlord and tenant.

Attornment in Commercial Leases

Commercial leases often consist of an SNDA. This is an agreement between a resident and landlord that
defines certain rights of the occupant and landlord. Also, the SNDA might offer information on other
third parties such as the landlord’s lender or the buyer of the property.
There are three sections: the subordination clause, the non-disturbance clause, and the attornment clause.
Attornment in a commercial lease is alike. The attornment clause in an SNDA commits the occupant to
acknowledge the new owner of the property as its landlord regardless of whether the new owner acquired
the property through a normal sale or a foreclosure.
In the subordination clause in an SNDA, the occupant agrees to let their interest in the property become
subject to the interests of a third-party lender. The landlord may want to use the commercial property to
obtain funding after entering into a lease with a tenant. Hence, most lenders would want any tenants to
subordinate their leasehold interests to the lender’s mortgage interest.
The subordination clause offers the third-party lender the choice to end the lease in the event of
commercial foreclosure. A non-disturbance clause or agreement grants the tenant the right to continue
staying in the leased premises so long they do no default. The tenant can lease the property even after
the property is sold or foreclosed. The non-disturbance clause supports the occupant rights to the
apartment even if the landlord does not meet mortgage obligations and the property is foreclosed.
Provisions of Attornment
Section 106, Section 107, Section 108, Section 109 of Transfer of property act 1882.
(Section 106) Duration of certain leases in absence of written contract or local usage
The Section 106 “Duration of certain leases in absence of written contract or local usage” of the Transfer
of Property Act, 1882 and its analysis will deal into methods of understanding the Section in terms of its
scope, limitations and its interplay in the light of the areas expounded in the 181st Law Commission
Report. After which the applicability, of Section 106 of the Transfer of Property Act, 1882 its Limitations
will be discussed. The said analysis will help the reader understand the need for the change as proposed
in the Law Report. Explanatory to the phrase’s “lease of immovable property for agricultural or
manufacturing purposes” will establish the reasoning behind time gaps for notice periods as laid down
in the Sub-section (1) of the Section 106 of the Transfer of Property Act,1882. The need to explore the
concepts of Notice to quit and the Date of Expiry of Notice, as under Section 106 of the Transfer of
Property Act, 1882 will help us understand the section better in the light of leading case law. The present
study is a complete study about section 106 of the Act of 1882 and the 181st Law Commissions Report.
Further this paper will explore the Section 106 of the Transfer of Property Act, 1882 and amendments
through latest, important case law, that changed the course of Section 106 of Transfer of Property Act,
1882.

(Section 107) leases how made.

A lease of immovable property from year to year, or for any term exceeding one year, or reserving a
yearly rent, can be made only by a registered instrument.
All other leases of immovable property may be made either by a registered instrument or by oral
agreement accompanied by delivery of possession.
Where a lease of immovable property is made by a registered instrument, such instrument or, where
there are more instruments than one, each such instrument shall be executed by both the lessor and the
lessee:
Provided that the State Government may, from time to time, by notification in the Official Gazette, direct
that leases of immovable property, other than leases from year to year, or for any term exceeding one
year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or
by oral agreement without delivery of possession.

(Section 108) Rights and liabilities of lessor and lessee.

The lessee may transfer absolutely or by way of mortgage or sub-lease the whole or any part of his
interest in the property, and any transferee of such interest or part may again transfer it.
(Section 109) Rights of lessor’s transferee.
In This Article I have dealt with the Right of Lessor’s Transferee, which is mentioned under Section
109, Transfer of Property Act, 1872. This section deals with the case of an assignment of the reversion,
i.e., the lessor’s interest. An assignment of the reversion may be:
This section tries to protect the interest of two parties they are the Transferee and the Lessee. In case of
lessee, it tries to protect his interest from being doubly liable to the Transferor and Transferee and in
case of Transferee it tries to protect his interest from diversing him all the Rights of the original
Transferor. Supposedly, “sub-tenant, who is in possession, is a tenant only of his lessor; and he will have
neither a privity of contract nor privity of estate so far as the superior lessor (in the present case the
landlord) is concerned. An order of eviction obtained against the chief tenant can be executed by evicting
the sub-tenant who was not made party in the application for the eviction. Since the rights of a sub-tenant
who has not been the party, are sufficiently protected by the general provisions contained in Order 91,
Rules 98 to 103, the obstructor’s rights in the present case are sufficiently protected and the order passed
to remove the obstruction put forward by the obstructor would be correct.
 LETTER TO TENANT TO ATTORN TENANCY

Date- 23rd December. 2021

To,
Mr.Sumit Chavan
Room No. 304, Adhiraj Residency,
Plot No.105, Next to MGM Hospital,
Sector 15, Kalamboli, Navi Mumbai – 410218

Sub. Letter for informing about the purchase of said premise.

Dear Sir,
I, the undersigned Mr. Vishal Sharma, old owner of the said premises, hereby inform you Mr.Sumit
Chavan that I have sold, conveyed and transferred the Room No. 304, situated at Adhiraj Residency,
Plot No.105, Sector 15,which you hold as a tenant, to Mr. Rajendra Gharat and Mrs. Usha Gharat,
resident of Gokuldham Residency ,Room No.403, Sector-21,Kharghar ,Navi Mumbai-400614, vide
Deed of Conveyance dated 23rd December 2021,thereby the said Mr. Rajendra Gharat and Mrs. Usha
Gharat has become the owner of the Room No. 304, Adhiraj Residency, Plot No.105, Next to MGM
Hospital, Sector 15, Kalamboli, Navi Mumbai - 410218 from 23rd December 2021.
Therefore, I hereby authorize and request you forthwith to attorn to and become a direct tenant
of the Mr. Rajendra Gharat and Mrs. Usha Gharat the purchaser of the Room No. 304, Adhiraj
Residency, Plot No.105, Next to MGM Hospital, Sector 15, Kalamboli, Navi Mumbai - 410218 and I
further authorize and request you to pay the rent in respect of this premises from January 2022 to the
Mr. Rajendra Gharat and Mrs. Usha Gharat, his heirs, executors, administrators or assigns and this shall
be sufficient warrant and authority to you for doing so.

Your faithfully,
Mr. Vishal Sharma