Nondisturbance Clause

AAA

DEFINITION of 'Nondisturbance Clause'

A type of clause in a mortgage contract. The nondisturbance clause ensures that the rental agreement between the tenant and the landlord will continue under any circumstances. This is done primarily to protect the renter from eviction by the mortgagor if the property is foreclosed upon. A nondisturbance clause ensures that a tenant will not be evicted in the event that the landlord goes bankrupt.

INVESTOPEDIA EXPLAINS 'Nondisturbance Clause'

A nondisturbance clause has a different application for mineral rights. In this case, the clause provides that the mineral extraction process does not interfere with any surface development of the land. For example, an oil company that drills wells on a piece of property may not interfere with the construction of a building or other developments on that property.

RELATED TERMS
  1. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  3. Royalty Interest

    In the oil and gas industry this refers to ownership of a portion ...
  4. Working Interests

    Refers to a form of investment in oil and gas drilling operations ...
  5. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  6. Landlord

    A real estate owner who rents or leases land or a building to ...
Related Articles
  1. 5 Signs That You're Living Beyond Your ...
    Budgeting

    5 Signs That You're Living Beyond Your ...

  2. Don't Let Foreclosed Homes Ruin Your ...
    Home & Auto

    Don't Let Foreclosed Homes Ruin Your ...

  3. Are You Living Too Close To The Edge?
    Budgeting

    Are You Living Too Close To The Edge?

  4. Foreclose On High Housing Prices
    Home & Auto

    Foreclose On High Housing Prices

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center