LANDLORD WAIVER AGREEMENTS – THE QUINTESSENTIAL PANDORA’S BOXLandlord Waiver Agreement • April 10th, 2018
Tenants often obtain business loans which are secured, in whole or in part, by collateral situated within premises leased by the tenant. In such cases, it is quite common for the tenant’s lender to seek a waiver agreement from the landlord with whom the tenant/borrower has entered into a lease. These waiver agreements are typically referred to as “landlord waivers”. In a nutshell, a landlord waiver allows the lender to enter the premises in order to retrieve the collateral pledged by the tenant/borrower should there be a default under the loan agreement. It also serves to confirm that the lender may do so in priority to any rights which the landlord itself may have over the collateral (typically, such rights being the landlord’s right to distrain against the chattels for unpaid rent).
