Legal Definitions - letter of attornment

A letter of attornment is a formal written notice sent by a property's previous owner (often called the "grantor") to a tenant. This letter serves to inform the tenant that the leased property has been sold to a new owner. Crucially, it directs the tenant to begin paying rent and fulfilling other lease obligations to the new owner from a specified date. It acts as a formal acknowledgment of the change in landlord and ensures a smooth transition of rental payments and responsibilities.

• Example 1 (Residential Property Sale):

  Imagine Sarah owns a duplex, and she rents out one of the units to Mark. Sarah decides to sell the entire duplex property to David. Before the sale is finalized, Sarah sends Mark a letter of attornment. This letter clearly states that the property Mark is renting has been sold to David, provides David's contact information, and instructs Mark to send all future rent payments directly to David starting from the first day of the next month. This illustrates the term because Sarah (the grantor) is formally notifying her tenant (Mark) of the property sale and directing him to pay rent to the new owner (David).

• Example 2 (Commercial Building Acquisition):

  Consider "Tech Innovations Inc.," which leases office space in a multi-tenant commercial building owned by "City Properties LLC." When City Properties LLC sells the entire building to "Global Investments Group," City Properties LLC sends a letter of attornment to Tech Innovations Inc. and all other businesses leasing space in the building. The letter confirms the sale to Global Investments Group, provides their banking details for rent payments, and specifies the effective date for the change in landlord. Here, City Properties LLC (the grantor) uses a letter of attornment to formally inform its commercial tenants (like Tech Innovations Inc.) about the change in ownership and to direct them to send rent to Global Investments Group (the new owner).

• Example 3 (Large-Scale Apartment Complex Sale):

  "Horizon Management," a company that owns and manages several apartment complexes, decides to sell one of its large complexes, "The Willows," to "Green Valley Holdings." The Willows complex has hundreds of residents. Horizon Management drafts and sends a letter of attornment to every tenant residing at The Willows. The letter details the sale to Green Valley Holdings, provides clear instructions on how and where to submit rent payments to the new management company, and reassures tenants that their existing lease terms remain unchanged. This example demonstrates a large-scale application where Horizon Management (the grantor) uses a letter of attornment to officially notify all tenants of The Willows complex about the property's sale and to instruct them to direct their rent payments to Green Valley Holdings (the new owner).