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. Escalator Clause

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

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

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

    A clause in an agreement which states that the current claim ...
  5. Honorable Undertaking

    A reinsurance treaty clause indicating that the agreement should ...
  6. Waiver Of Inventory Clause

    A clause in an insurance policy that says that the insurance ...
Related Articles
  1. Personal Finance

    Why Your Will Needs a 'Titanic Clause'

    If you don't have a Titanic clause in your will and disaster strikes, there's no guarantee that your intended beneficiaries will inherit your assets.
  2. Managing Wealth

    4 Things Landlords Aren't Allowed To Do

    Whether you're a landlord or a tenant, you need to know the rules.
  3. Investing

    Top 4 Nightmares For Real Estate Investors

    Renting out your property is not without risks; the good news is, they don't have to keep you up at night.
  4. Investing

    8 Lease Clauses You Need To Know

    If you're renting an apartment this year, beware of signing contracts with these tricky clauses.
  5. Investing

    Top 6 Tips for Turning Your Home Into a Rental Property

    Learn what you need to do to turn your property into a rental property.
  6. Insurance

    Life Insurance Clauses Determine Your Coverage

    Understanding these key parts of your policy will help you to ensure that your family will be covered.
  7. Managing Wealth

    Top 5 Ways to Protect Yourself Against Problem Renters

    Renting seems like the perfect way to mitigate the costs of an extra home that won’t sell; the intended course of action when a property was purchased for an unbelievable price, or many of the ...
RELATED FAQS
  1. What is an alienation clause?

    Whether used in reference to insurance policies, mortgages or commercial loans, an alienation clause stipulates that should ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
Trading Center