In a non-disturbance clause, which scenario protects the lessee?

A non-disturbance clause is commonly included in leases to protect the tenant (lessee) from disruptions in their tenancy due to events outside their control, particularly those involving the property owner's mortgage lender. When a lease includes a non-disturbance clause, it ensures that the lessee can continue to occupy the property even if the property owner defaults on their loan, and the lender takes action, such as foreclosing on the property.

In this context, if there is a default on the loan, the non-disturbance clause serves to protect the lessee by allowing them to remain in possession of the leased space despite the lender potentially taking ownership of the property through foreclosure. This safeguard is crucial for tenants as it provides them security regarding their occupancy and protects their investment in the space they are leasing.

On the other hand, options like loan paid off, eminent domain, and default on lease either do not pertain to the lessee's protection under a non-disturbance agreement or imply scenarios that do not ensure continued occupancy and leasing rights for the tenant. Therefore, the chosen scenario aligns well with the role of a non-disturbance clause in real estate transactions.