Lease Assignment Information
A Lease Assignment Agreement is also known as:
- Lease Transfer
- Assignment of Lease
- Assignment Agreement
What is a Lease Assignment Agreement?
A Lease Assignment Agreement is used to transfer lease interest in a commercial or residential property from one party to another.
Parties in a Lease Assignment Agreement:
Assignor: The original tenant (person or corporation) that is transferring the lease interest to a new tenant.
Assignee: The new tenant (person or corporation) who is taking over the lease interest from the assignor.
When Should I Use a Lease Assignment?
There are several instances where you might use a Lease Assignment to transfer the remaining interest in a lease to a third party.
Reasons for assigning a residential lease agreement may be:
- Downsizing or upsizing living space
Reasons for assigning a commercial lease agreement may be:
- Seasonal business
What is the Difference Between Assignment and Subletting?
When a tenant assigns a lease, they permanently give up the benefits of the lease, and a new tenant assumes the lease interest. The original tenant still remains liable, behind the new tenant, unless they are released of this obligation by the landlord.
Subletting a space means to transfer lease rights temporarily until the remaining lease term is over or until the original tenant returns.
With a sublease, the original tenant is still responsible for the lease term, paying rent to the landlord, and dealing with repairs or other issues in the property, whereas a Lease Assignment puts the third party in direct contact with the landlord to pay rent and assume a business relationship.
Does a Landlord Have to Consent to a Lease Assignment?
Yes. Before assigning a residential or commercial lease, it's important to reference the original agreement to see if the assignment is permitted. If not, you may have to get written permission from your landlord to assign the lease to a third party.
Liability and Lease Assignment
When you assign a lease agreement, you are transferring your lease obligations to another party. The assignee then assumes the responsibilities of the lease. However, unless the assignor is released of liability, they can still be liable for damage done by the assignee. If the assignee breaches the lease agreement, the landlord can approach the assignor for remedy.