Attornment

Attornment refers to a tenant's formal agreement to acknowledge a new owner or landlord of the property as their landlord.

Definition

Attornment is a legal term in property law that refers to a tenant’s formal agreement to acknowledge a new owner or landlord of the property as their landlord. This process typically happens when the property is sold or transferred, and the tenant is required to recognize the new owner as their landlord and uphold their lease terms. Attornment ensures continuity of the rental agreement and clarifies the tenant’s obligations under the new landlord’s ownership.

Examples

  1. Sale of a Property: When a landlord sells a rental property, the new owner becomes the landlord. The tenant must attorn to the new landlord, acknowledging that their lease continues under the new ownership.

  2. Foreclosure: In a foreclosure process, if the property is repossessed by the bank or a third party, tenants may be required to attorn to the new owner to maintain their tenancy.

  3. Inheritance: If a rental property is inherited by an individual or entity, the existing tenants must attorn to the inheritor as their new landlord to ensure the lease status is maintained.

Frequently Asked Questions (FAQs)

Q1: What happens if a tenant refuses to attorn to a new landlord?

  • If a tenant refuses to attorn, the new landlord may take legal action to enforce tenancy, or the tenant may face eviction for non-compliance.

Q2: Is an attornment agreement required in all property sales?

  • Not all property sales require formal attornment, but it is common in commercial leases and other complex property transactions to ensure all parties understand the changes in ownership.

Q3: How does attornment differ from estoppel?

  • Attornment is a tenant’s acknowledgment of a new landlord, whereas estoppel is a legal principle preventing a person from making assertions contradictory to previously declared statements if it would harm another party who relied on those statements.

Q4: Can attornment terms be included in the original lease?

  • Yes, many leases include attornment clauses specifying that the tenant must attorn to any future owner or successor of the property.

Q5: When should a tenant attorn to a new landlord?

  • The tenant should attorn as soon as ownership of the property is legally transferred and official notification is provided.
  • Estoppel: A legal principle stopping someone from arguing something contrary to a claim made or position taken earlier, if it would’ve adversely affected another party who relied on the original claim.
  • Leasehold Estate: An interest in real property that is held under a lease.
  • Sublease: An arrangement where the tenant leases the rented property to another, maintaining the primary responsibility to the property.

Online References

  1. Investopedia: Attornment
  2. Legal Dictionary: Attornment
  3. Nolo: Attornment

Suggested Books for Further Studies

  1. Gleeson, Michael. Principles of Property Law. Cambridge University Press, 2020.
  2. Smith, Roger. Property Law. Pearson Education Limited, 2018.
  3. Garner, Brian A. Black’s Law Dictionary. Thomson Reuters, 2019.

Fundamentals of Attornment: Property Law Basics Quiz

### What is attornment? - [ ] A legal agreement to sell property. - [x] A tenant's acknowledgment of a new landlord. - [ ] An ownership transfer document. - [ ] A property value assessment method. > **Explanation:** Attornment refers to a tenant's formal agreement to acknowledge and recognize a new owner or landlord of the property as their landlord. ### When does attornment typically occur? - [x] When the property ownership changes. - [ ] When lease terms are violated. - [ ] During routine lease renewal. - [ ] When property taxes are paid. > **Explanation:** Attornment typically happens when the property ownership changes due to sale, foreclosure, or inheritance. ### Which document may include an attornment agreement? - [ ] Eviction notice - [x] Lease agreement - [ ] Mortgage contract - [ ] Rental application > **Explanation:** A lease agreement can include a clause requiring a tenant to attorn to any future new landlord. ### What may happen if a tenant refuses to attorn? - [ ] Nothing changes in the tenant's status. - [ ] An automatic lease cancellation. - [ ] Property is transferred back to the old owner. - [x] The new landlord may take legal action or evict the tenant. > **Explanation:** If a tenant refuses to attorn, the new landlord may take legal action or evict the tenant for not complying with the transition. ### How does attornment benefit a tenant? - [ ] It reduces rent. - [ ] It extends the lease term. - [ ] It provides an option to purchase the property. - [x] It ensures lease continuity under a new landlord. > **Explanation:** Attornment benefits the tenant by ensuring the continuity of their lease under the new landlord, providing stability and assurance in their tenancy. ### Attornment is often required in which type of lease? - [x] Commercial leases - [ ] Verbal agreements - [ ] One-month short-term leases - [ ] Lease-to-own agreements > **Explanation:** Attornment is often required in commercial leases to ensure all parties acknowledge any changes in property ownership and lease continuance. ### Which party is primarily responsible for initiating attornment? - [ ] The new landlord - [ ] The previous landlord - [x] The tenant - [ ] Local government authorities > **Explanation:** The tenant is primarily responsible for attorning, recognizing the new landlord as per the lease agreement's terms. ### Why might a lease include an attornment clause? - [ ] To increase the property's market value. - [ ] To allow periodic rent revisions. - [x] To ensure the tenant’s compliance with future ownership changes. - [ ] To add additional security deposit requirements. > **Explanation:** A lease includes an attornment clause to ensure the tenant's compliance and smooth transition upon any future changes in property ownership. ### What is a primary difference between attornment and estoppel? - [ ] Attornment pertains to tenant sales; estoppel is for landlords. - [ ] Estoppel applies only to court cases. - [x] Attornment involves a tenant's acknowledgment of a new landlord, while estoppel prevents contradictions against previous representations. - [ ] They are the same legal concepts. > **Explanation:** Attornment involves recognizing a new landlord, whereas estoppel stops a person from making contradictory claims that would negatively impact another relying party. ### What formalizes the transfer of property ownership necessitating attornment? - [ ] Lease extension agreement - [x] Sale or transfer of property - [ ] Ownership opinion letter - [ ] Tenant background check > **Explanation:** The formal transfer of property ownership through sale, foreclosure, or inheritance necessitates the tenant to attorn to the new landlord.

Thank you for exploring the depths of property law through attornment and sharpening your knowledge with our practice quizzes. Strive for excellence in your understanding of tenancy and property rights!

Wednesday, August 7, 2024

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