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Tenant's Assignment of Lease Agreement


Overview
- The Tenant's Assignment of Lease Agreement allows a tenant in a commercial or residential real estate lease to assign (transfer) the lease to someone else.
- Tenants frequently desire to assign its lease to another party.   If early termination of the lease agreement is not permitted, the tenant may assign its interest as an accommodation to the landlord and to relieve the burden of monthly lease payments.
- Any agreement involving an interest in real estate, an agreement assigning a tenant's interest usually must be in writing to be enforceable.
- The Assignor (current tenant) should take care in selecting the new tenant as the assignment does not normally relieve the original tenant of its obligations in the lease.  Because the original tenant assigns rights to deposits and other payments, it may be appropriate for the Assignee to make a payment to the Assignor.
- Many leases state that the tenant cannot assign the interest unless the landlord first consents.  While a tenant may have successfully negotiated an assignment with another party, it is also important to review the lease agreement to see if assignment is permitted.  If assignment is not permitted, the tenant should speak with the landlord before proceeding.  
- The Assignor should be very careful to obtain the landlord's permission before making any legally binding arrangements with the Assignee.  Otherwise, if the Assignor and Assignee make a deal, and the landlord refuses to consent, the Assignor may be subject to a claim of breach of contract from the would-be Assignee.  The Business Attorney form includes a place at the bottom for the landlord to acknowledge giving his or her consent.

When You Need It
- To allows a tenant (the assignor) in a real estate lease, either commercial or residential, to assign its interest to another party (the assignee).


Getting Started

You will need:
- Name and address of the person assigning the lease.
- Name and address of the person to whom the lease is being assigned.
- Name and address of the original landlord.
- Description of the original lease agreement and when the assignment is to be effective.

When to Review and Revise 
- To correct the information contained in the assignment.
- To draft another Tenant's Assignment of Lease.