Residential or Commercial Lease Assignment Legal Forms
Used to assign an existing residential or commercial lease to another party.
Lease Assignments FAQ
What is a Lease Assignment?
When granted permission either by a landlord directly or by the terms of a lease agreement, the original tenant to a lease can then “assign” some or all of these rights over to someone else. In this case, the original tenant is known as the “assignor” and the other party is the “assignee.” When a Lease Assignment has been signed, the rights and responsibilities of the tenant’s side of the lease are then transferred to the assignee; this may be useful, for example, when the original tenant wants to give up the apartment because of a job relocation.
Lease assignments can also be useful in the sub-letting of apartments, though it is important that the assignor be aware that in these arrangements that they will still be responsible for living up to all of the terms of their original lease agreement with the landlord of the property.
Does a landlord have to agree to a Lease Assignment?
In many Lease Assignment forms, a Landlord Consent clause is optional. In truth, the landlord’s say in the matter of a lease assignment boils down to the lease agreement they originally signed with the tenant. If they chose to forgo the rights to rule on a Lease Assignment, then the tenant will have more flexibility in a Lease Assignment. In checking on your own lease situation, you can only refer to your own lease agreement to fully understand what course of action you can pursue in terms of a Lease Assignment.
What kinds of Lease Assignments are there?
Like Lease Agreements, Lease Assignments are generally divided into two categories: Commercial and Residential. Commercial Lease Assignments deal with the assignments of tenants of real estate that is used for business while Residential Lease Assignments deal with living spaces such as homes and apartments. Though the nature of the property being assigned is different, many of the characteristics and provisions of each agreement and assignment are similar.
What kind of provisions might I expect to see in a Lease Assignment document?
There are four central provisions that you should be looking for before signing a Lease Assignment:
- Parties to the Agreement: This is simply the provision of the agreement identifying the assignor and assignee; typically it also outlines the fact that these terms will be used for the rest of the contract.
- Assignment: This is the language that assigns the rights and obligations of the assignor under the existing lease agreement to the assignee.
- Assumption of Rights and Obligations: In this provision, the assignee agrees to assume the assigned rights and obligations.
- Signatures and Landlord’s Consent: Both parties (assignor and assignee) must then sign the document, with an option for the Landlord to offer their consent, as well, though this is not always required.
How do I know if my landlord’s consent is required for this Lease Assignment?
On many Lease Assignment forms, you’ll have to acknowledge the landlord in one way or another. You’ll either have to get the landlord’s permission for the assignment (and therefore their signature) or you will have to verify in writing that the landlord’s consent is not required. The question then boils down to whether or not you need the landlord’s consent.
You’ll have to refer to your lease agreement. There should be a provision that directly relates to what you, as the potential assignor, are capable of doing under said agreement. Many times a landlord will be open to Lease Assignments but will still want the opportunity to consent to the assignment just to stay informed about the situation.
Is a Lease Assignment the same as subletting an apartment?
Not quite. A standard Lease Assignment will typically be a full transfer of the rights and obligations of a lease from one party to another. However, when subletting an apartment or subleasing part of a commercial property, a Lease Assignment still takes place. Therefore a sublease or sublet may be a type of Lease Assignment, but the umbrella term “Lease Assignment” is not the same thing as a sublease or sublet.
Is “consideration” an issue to a Lease Assignment’s validity?
An astute question! Because many other contracts require both parties to receive consideration – that is, receive some form of value or payment from signing the agreement – a contract between two or more parties such as a Lease Agreement should also have consideration play a role. Although the assignor is technically not receiving any payment in a Lease Assignment, they are still receiving consideration because they assigning over both rights and obligations. The consideration of the original lease agreement is being transferred, so consideration is generally not an issue in a Lease Assignment’s validity.
What is my role after I’ve assigned my lease to someone else?
Virtually zero – both your rights and obligations, when fully and validly signed away to someone else – will allow you then to pursue your original goals in seeking out the Lease Assignment, such as moving away, moving to a different part of town, etc.
When is a Lease Assignment valid?
A Lease Assignment has the same validity requirements as all contracts between two or more parties. What’s special in the case of Lease Assignments is that the validity may hinge upon a Landlord’s permission – though this is not always the case. If a landlord requires in a lease agreement (commercial or residential) that their permission be sought for a Lease Assignment, then the Lease Assignment will not be valid unless that permission has been put in writing.
When is a Lease Assignment effective?
With validity (see above) intact, the Lease Assignment will be effective once it is signed by all of the relevant parties – either both the assignor and assignee or assignor, assignee, and landlord. It’s possible that you may lay out a distinctive schedule for your own Lease Assignment (to facilitate a transition, for example). But the Lease Assignment will still be valid even before its effective date and will still be enforceable thereafter.