Commercial Lease Assumption Agreement Template

COMMERCIAL LEASE ASSUMPTION AGREEMENT TEMPLATE FAQ

What is a commercial lease assumption agreement?

A Commercial Lease Assumption Agreement is a document where a new party (the “Assuming Tenant”) agrees to take on the tenant obligations under an existing commercial lease as of a specified effective date. It’s often used alongside an assignment of lease, purchase of a business, or corporate restructuring.

How is assumption different from assignment?

An assignment is the transfer document between the existing tenant and the new tenant. Assumption is the new tenant’s written promise to take on lease duties. Many transactions use both: an Assignment Agreement + an Assumption Agreement, plus landlord consent if required.

Do you still need landlord consent?

Usually yes if the original lease requires it. This template includes landlord consent as a condition and an optional landlord signature block.

What should be included?

Include: lease identification, effective date, assumption of all tenant obligations, confirmation the lease remains unchanged, any security deposit handling, and indemnities for pre/post-effective date obligations.

Does the original tenant remain liable?

Often yes unless the landlord provides a written release/novation. This template includes neutral language and a place to indicate whether a release is granted.

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