Assignment of Commercial Lease Agreement Template

ASSIGNMENT OF COMMERCIAL LEASE AGREEMENT TEMPLATE FAQ

What is an assignment of a commercial lease?

An Assignment of Commercial Lease transfers a tenant’s rights (and often obligations) under a commercial lease to a new tenant (the assignee). After assignment, the assignee usually steps into the tenant’s position under the lease, subject to the landlord’s written consent if the lease requires it.

How is an assignment different from a sublease?

In a sublease, the original tenant remains the tenant under the prime lease and rents space to a subtenant. In an assignment, the new tenant takes over the lease position. Many landlords prefer assignments when the original tenant is fully exiting the space.

Does the original tenant remain liable after assignment?

Often yes unless the landlord releases them in writing (sometimes called a “novation” or “release”). This template includes an option to state whether the assignor remains liable or is released if the landlord agrees.

What should be included?

Include: lease reference, premises description, effective date, assumption of obligations, landlord consent condition, security deposit handling, proration of rent, and any release/indemnity terms. This template includes optional exhibits for lease copy and consent.

Do you need landlord consent?

Most commercial leases require landlord written consent for assignment. This template makes landlord consent a condition and includes an optional landlord signature block to acknowledge consent.

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