An ‘Assignment of Lease Form’ is a special document that allows a tenant to transfer his interests in the lease agreement to another entity or individual. The said entity or individual accepts that he concurs with and is subsequently bound by the terms and conditions that are spelled out in the original lease agreement.
Like any other document, the landlord has to similarly sign this one to state that he indeed agrees with the transfer and to make it attain the authority and finality it requires. When signing this agreement, the two parties, i.e., the landlord and the tenant, have to distinguish that it is an assignment, not a lease.
Basic Facts of The Assignment of Lease Form
Below are the basic facts of the ‘assignment of lease’ form:
Fact #1:
An ‘assignment of lease’ transfers the entire leasehold estate from the tenant to the assignee, whereas the sublease only transfers portions of the estate to the sub-tenant. As such, it is more comprehensive than the sublease.
Fact #2:
A tenant has to seek permission from the landlord before transferring this lease to another tenant. The normal lease agreements do not have this precondition, though.
Fact #3:
In an assignment, the tenant transfers both privity of estate and that of the contract. This means that the assignee is now the new occupant of the premises and has assumed all obligations of the contract between the landlord and the previous tenant. The assignee, in other words, has the rights the previous tenant held.
Fact #4:
Even though the assignee assumes all obligations of the contracts which the tenant held, this new arrangement does not absolve the previous tenant from the privity of contract with the landlord.
Put differently; the previous tenant is only released from his or her obligations if the landlord agrees to release them. Otherwise, it should not be assumed that the assignment has released them from their original contractual obligation.
Fact #5:
The landlord may seek damages or money owed by either assignee or original tenant in case the previous tenant was not released from its obligations. The previous tenant, however, does not have any privity of contract with the assignee and has no obligation to answer to any request by the assignee to perform any duties in the contract.
Fact #6:
Both state and local laws govern all landlord-tenant transactions. As such, you should be quick to consult with local laws and local state when attempting to force an assignee agreement. That way, you will avoid the common errors and issues that potentially arise when executing such an agreement.
Free Assignment of Lease Form
CONCLUSION
As you may see from the foregoing explanations, this document differs not so significantly from the ordinary lease agreement. Nonetheless, it has to be expressly stated as an ‘assignment of lease form’ to distinguish it from the ordinary lease agreement. This is the only way to forestall confusion and other adverse issues that ordinarily follow thereafter.
