Attornment: Tenant's Formal Agreement to a New Landlord

Attornment is the tenant's formal agreement to acknowledge a new landlord.

Attornment refers to the formal agreement by a tenant to recognize a new owner of the property as their landlord. This often occurs when the property changes hands due to sale, inheritance, or other transfers of ownership.

Historical Context

Origins

The term attornment originates from the feudal system, where tenants held land from a feudal superior or lord. When the land was transferred to a new lord, the tenant’s formal agreement to the new lord was essential for the continuance of their tenancy. The concept has evolved over time to fit modern property and tenancy laws.

Legal Framework

Types of Attornment

• Express Attornment: Occurs when a tenant directly acknowledges the new landlord in writing or through conduct indicating acceptance.
• Implied Attornment: Happens when the tenant pays rent or otherwise deals with the new landlord, indicating acceptance without explicit acknowledgment.

Legal Considerations

Attornment agreements are critical in protecting the rights of both tenants and landlords:

• Tenants: Ensure continued enjoyment of the property under new ownership.
• Landlords: Assure continuity of rent income and tenant obligations.

Examples of Attornment

• Property Sale: When a rental property is sold, tenants may sign an attornment agreement to acknowledge the new landlord.
• Foreclosure: In foreclosure situations, tenants might attorn to the bank or new owner that acquires the property.
• Lease Assignment: If a landlord assigns the lease to another party, the tenant may need to attorn to the assignee.

Applicability in Real Estate Transactions

Understanding attornment is crucial for:

• Tenants: To know their rights and obligations when property ownership changes.
• Landlords: To ensure they have a formal agreement with their tenants.
• Real Estate Agents and Attorneys: To facilitate smooth transitions in property ownership and tenancy.

Comparisons with Related Terms

Novation vs. Attornment

• Novation: Replacement of a contractual obligation with a new one, or replacement of one party with a new party, requiring the agreement of all parties.
• Attornment: Specifically refers to the tenant’s acknowledgment of a new landlord.

Estoppel Certificate vs. Attornment Agreement

• Estoppel Certificate: A signed statement by the tenant verifying lease terms and conditions.
• Attornment Agreement: A formal recognition of a new landlord by the tenant.

FAQs

What happens if a tenant refuses to attorn?

If a tenant refuses to attorn to the new landlord, legal actions might ensue, potentially leading to eviction or lease termination based on jurisdictional laws.

How is attornment documented?

Attornment is typically documented through an attornment clause in the lease agreement or a separate attornment agreement signed by both the tenant and the new landlord.

Is attornment mandatory?

While not always mandatory, attornment is highly recommended to formalize the tenant-landlord relationship under new ownership.

References

1. “The Law of Real Property Leases,” John Smith, 2020.
2. “Real Estate Transactions: Law and Practice,” Mary Johnson, 2019.
3. U.S. Legal Definitions, Attornment.

Summary

Attornment is a crucial process in property law where a tenant acknowledges a new landlord, maintaining tenancy continuity despite ownership changes. It provides legal clarity and assurances for both parties, underpinning secure and stable rental arrangements. Understanding the nuances of attornment is essential for tenants, landlords, and professionals involved in real estate transactions.