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.
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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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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Further, under the lease assignment many items of equipment will be transferred by Gelson's to the assignee and it also agreed to pay the assignee a lease assignment fee of USD1.9m and additional closing costs are expected to be between USD300,000 and USD400,000.
RKF recently arranged the retail lease assignment, including approximately 9,000 s/f on two floors, in the Credit Suisse Building on the southeast corner of 25th Street.
* Represented both the landlord, TD Bank, and the lessee, Hudson City Savings Bank, in the negotiation of a 2,400 s/f lease assignment at 779 Franklin Turnpike in Franklin Lakes, NJ.
Michelle Stone, managing director at Sinvin Realty, was the sole broker in the lease assignment and represented ?What If!
Zezas, SIOR, president and CEO of Real Estate Strategies Corporation, announced that the company completed a lease assignment for Odyssey Pharmaceuticals, Inc., a subsidiary of PLIVA, Inc.
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.
CRESA Partners has arranged a lease assignment that enables Pfizer Inc.
"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."
Exclusive agency agreements entered into between brokers and tenants typically contemplate the payment of a commission to the agent only for a sublease, lease assignment or lease termination or a similar disposition of the space.