Lease Assignment Agreement

What is a Lease Assignment Agreement?

A Lease Assignment Agreement is a legal document that allows a current tenant (assignor) to transfer their lease to a new tenant (assignee).

This type of agreement is typically used when the original tenant wants to permanently move out before the lease term ends but doesn't want to break the lease.

What are the benefits of creating a Lease Assignment Agreement?

1. For Original Tenants: If the original tenant needs to move out for any reason (such as relocating for a job, upsizing or downsizing, or unexpected life changes), a Lease Assignment Agreement allows them to do so without incurring penalties for breaking their lease. It offers a lawful way to transfer responsibility for the lease to someone else.
2. For New Tenants: A Lease Assignment Agreement provides an opportunity to take over an existing lease, often with favourable terms that may no longer be available in the current market. This can be advantageous for those seeking flexibility or short-term rental options, as the lease will end on the original date set by the assignor and the landlord.
3. For Landlords: In most cases, landlords must approve the new tenant, which gives them some control over who is occupying their property. A Lease Assignment Agreement can help maintain occupancy rates by ensuring that the property is not left vacant due to a tenant's unexpected departure. This helps maintain a steady income stream from the property.
4. Minimizes Disputes: By clearly defining the roles and responsibilities of all involved parties (the original tenant, the new tenant, and the landlord), a Lease Assignment Agreement can minimize disputes and potential legal issues down the line.