Definitions for "NONDISTURBANCE CLAUSE"
A term of a mortgage which guarantees that leases regarding the subject property will be allowed to continue uninterrupted in the event of mortgage default.
An agreement where the mortgagee agrees to honor a tenant's lease in the event that the mortgage is foreclosed.
1. An agreement in mortgage contracts on income-producing property that provides for the continuation of leases in the event of loan foreclosure.