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. Landlord

    A real estate owner who rents or leases land or a building to ...
  6. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
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. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center