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 ?
It's a faster and easier transaction than an asset purchase, where assignment of leases and contracts, bulk-sales notices and other legal issues must be addressed.
An amendment to the original complaint was to be filed Friday after an assignment of leases document was prepared.
A revised Assignment of Leases and Rents--provides broader lender protection in the event of a borrower bankruptcy filing.
The series 2009-FDG certificates represent the beneficial interests in a single non-recourse loan secured by the fee interest in 37 office and industrial buildings, easement interests in the right-of-way along a 351-mile railroad corridor extending from Jacksonville to Miami, the fee interest in 23 parcels adjacent to the railroad corridor, and collateral assignment of interest in the leases, rents, and licenses associated with these parcels, and the collateral assignment of leases and licenses encumbering five additional parcels adjacent to the rail corridor.
Property owners are quite naturally worried that the company which takes over the lease will not be as good a payer and not have such a strong credit rating as their existing tenant - so refusals to accept assignment of leases are becoming much more common,' she said.
It also included the sale of the servicing facility in Scottsbluff, Nebraska and the assignment of leases of the facilities in Indianapolis and Littleton, Colorado.
The series 2009-FDG certificates represent the beneficial interests in a single non-recourse loan secured by the fee interest in 44 office and industrial buildings, easement interests in the right-of-way along a 351-mile railroad corridor extending from Jacksonville to Miami, the fee interest in 23 parcels adjacent to the railroad corridor, and collateral assignment of interest in the leases, rents, and licenses associated with these parcels, and the collateral assignment of leases and licenses encumbering five additional parcels adjacent to the rail corridor.
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