assignment of lease

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Assignment of Lease

The transfer of a lease by the lessee to another party. For example, if one rents an apartment, one might sell or give one's friend the right to live there (and the obligation to make payments). The assignor (the original lessee) remains bound by the lease contract if the assignee fails to make his/her obligations, unless the lessor states otherwise. Because of the potential complications, some lessors do not allow lessees to engage in assignment of lease.

assignment of lease

Transferring all rights in a lease to real property to another.Leases typically contain prohibitions against assignment without landlord approval, but the approval may not be unreasonably withheld. Reasonable grounds may include a change in the creditworthiness of the tenant,an increase in the burden placed upon the property by the new tenant because of additional parking demands,or incompatibility with other tenants such as a liquor store coming into a small shopping center of family-oriented businesses.When a tenant assigns its lease, it remains liable for the entire lease term unless the landlord agrees to a novation, which is a declaration that the old lease is void and the landlord has entered into a direct relationship with the assignee.

References in periodicals archive ?
Most leases require landlord consent to a sublease, lease assignment or lease hypothecation or encumbrance or to an occupancy of the premises by third parties.
With the lease assignment and the sale of assets completed to SEM, the ESI business has been successfully assumed by SEM and Flotek did not record any additional loss on disposal of discontinued operations as a result of these transactions.
As landlord, we have been contributing in excess of $35 per square-foot to help facilitate this lease assignment, which makes 44 Wall Street an extremely exciting package.
Future Quest, Inc will analyze the potential for development of an 8,000 foot TVD well to be drilled which is a condition of the original lease assignment to Brazos Resources, Inc.
CRESA Partners has arranged a lease assignment that enables Pfizer Inc.
We believe that we are close to finalizing a joint venture agreement with a Caribbean charter operator and this acceptance of lease assignment clearly demonstrates our intentions".
Clarke's in a lease assignment for the 7,700-square-foot restaurant space at 44 West 63rd Street in the Empire Hotel from Iridum.
Robert Scott, Viva's Chairman, stated, "Since we have announced our acceptance of the lease assignment of the Saab 340A, s/n-73, the procurement of airport space has been a high priority.
Zezas, SIOR, president and CEO of Real Estate Strategies Corporation, announced that the company completed a lease assignment for Odyssey Pharmaceuticals, Inc.
Michelle Stone, managing director at Sinvin Realty, was the sole broker in the lease assignment and represented ?
RKF director Spencer Levy arranged the lease assignment on behalf of both La Mar and Tabla.
In accordance with the assignment of the lease, various items of equipment will be transferred by Gelson's to the assignee and Gelson's has agreed to pay the assignee a lease assignment fee of $1,850,000.