Nondisturbance Clause

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.

BREAKING DOWN '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. Contingency Clause

    A contract provision that requires a specific event or action ...
  2. Release Clause

    A release clause is a mortgage term that refers to a provision ...
  3. Escalator Clause

    A contract provision allowing for one to pass an increase in ...
  4. Alienation Clause

    A clause in a mortgage contract that requires full payment of ...
  5. After-Acquired Clause

    A provision included in legal contracts ensuring that subsequent ...
  6. Subordination Clause

    A clause in an agreement which states that the current claim ...
Related Articles
  1. Home & Auto

    4 Things Landlords Aren't Allowed To Do

    Whether you're a landlord or a tenant, you need to know the rules.
  2. Personal Finance

    "The Santa Clause"

    The three "Santa Clause" films have grossed $144,833,357, $139,236,327 and $84,500,122.
  3. Retirement

    Estate Planning: Other Types Of Wills

    by Cathy Pareto, CFP®, AIF® (Contact Author | Biography) In addition to the traditional types of wills discussed in Part 2, there are other types of wills, which include the following: ...
  4. Home & Auto

    Renters' Guide: The Rental Process

    Finding the ideal rental property can be time consuming. Knowing what to expect can help ensure a smooth process. View PropertiesWhile there are times when people must rent a property sight-unseen, ...
  5. Home & Auto

    The Complete Guide To Becoming A Landlord: Landlord-Tenant Relationship

    A lease establishes the relationship of landlord and tenant and is both a conveyance of a possessory estate in real property and a contract between the parties. Through the lease, the tenant ...
  6. Home & Auto

    Renters' Guide: Considerations When Finding A Rental

    One of the first decisions that will have to be made is the type of property to rent. Urban areas typically have dozens of apartment complexes from which to choose, as well as condominium units, ...
  7. Investing

    Corporate Bonds and the Importance of Covenants

    Any type of investor, private or institutional, should be acquainted with the significance of covenants in corporate bond agreements.
  8. Home & Auto

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  9. Insurance

    What is a Force Majeure?

    A force majeure clause frees both parties in a contract from fulfilling their obligations in the event of some catastrophic or unexpected occurrence.
  10. Home & Auto

    Renters' Guide: Tenants, Landlords And Types Of Leases

    Landlord and TenantA landlord is an owner of real property who agrees to rent all or part of a property to another party, called the tenant, for some period of time. A lease establishes the relationship ...
RELATED FAQS
  1. Can you ask your landlord to remove a waiver of subrogation clause from your lease?

    Learn how to remove a waiver of subrogation clause from a lease. Find out also why you might not want to strike this clause ... Read Answer >>
  2. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Answer >>
  3. Is a waiver of subrogation clause better for a tenant or a landlord?

    Find out why a waiver of subrogation clause is important to include in a lease agreement, and understand how it affects landlords ... Read Answer >>
  4. Why might landlords require renters insurance?

    Learn why landlords may require tenants have renters insurance, and find out what type of coverage landlords can request ... Read Answer >>
  5. What is a "force majeure"?

    A force majeure is derived from the French term meaning "greater force" and refers to any natural and unavoidable catastrophe. ... Read Answer >>
  6. Will filing bankruptcy stop an eviction?

    Learn about how filing bankruptcy can affect an eviction process, and find out what recourse your landlord has if you file ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center