If you are currently on a tenant lease or a commercial lease and you come to a point where you no longer wish to you’re the property you’re currently leasing, you cannot just simply dump or vacate that property. You are still obligated by the terms of your lease agreement to continue paying your rent.
However, you may assign the lease to someone else. An assignment of lease is an agreement you enter with someone so that they will take the responsibility for the lease obligations. But, before assigning a lease to someone, there are few things you need to know.
What is an Assignment of Lease?
In a lease assignment, the current lessee enters into an agreement with a new party which will be called an assignee. The assignee will then agree to take the duty under the original lease. For instance, if you are under a commercial lease and you want no longer want to continue doing your business in the area, you may transfer it to a new owner via an assignment of lease. Basically, it’s simply putting someone else all the responsibility in the lease you’re under in.
When Can I Assign a Lease?
Whenever you lease a property, you have all the right to use an assignment of lease. The real estate law allows an assignment of lease of a real estate property to a potentially capable person or entity in almost any situation. However, there may be some lessor permission before entering into this type of lease agreement. It depends on the terms of your underlying lease before diving into assigning a lease, so make sure you’ve read all your documents beforehand.
How can I enter into an assignment of lease?
All documents should be entered into in writing, including a lease assignment. In Real estate, law often states that the terms of your original lease and the state of each party involved will or will not be responsible for under the terms of the assignment, so make sure you have everything laid out in print and even hire a lease lawyer to make sure you understand what you are agreeing to. For instance, if you’re under a tenant lease and you enter into an assignment of lease to your new assignee, both should agree on everything required by your tenant under the original lease. The same is true if you’re under a landlord lease. The new assignee should agree with all everything written in your original landlord lease agreement.
What else do I need to know before entering into a lease assignment?
The very basic thing you need to know before entering into an assignment of lease is to know all the terms of the original lease. This would include the following:
- The length of the lease
- Legal regulations regarding your assignment
- The new terms of the assignment of lease
You also need to ensure that both parties carefully read the assignment and sign it.
Assigning a property or a real estate lease to someone else can be useful given the right circumstances. If you want to travel, forced to locate for your new work, or simply no longer want to be obligated on your lease, you can always hire a lawyer to help you break your lease early and let you know what penalties you may have to adhere to if you do decide to terminate your lease early, follow this link for more information on how to break a lease. However, in order to do so, planning ahead is crucial. Ensure that your assignment of lease is sufficiently precise. First, you need to make sure you’re properly protected. Draft a lease assignment which will cover all the important point so that you’ll have peace of mind that everything you do will be done in accordance with the real estate law.