Lease Assignment Agreement
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A Lease Assignment Agreement allows a tenant to transfer all rights and obligations under an existing lease to a new tenant, as well as to ensure compliance with state landlord-tenant laws.
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What is a lease assignment agreement?
A lease assignment agreement template is a formal legal contract that allows a tenant to transfer all of their rights and obligations under an existing lease agreement to another party. This document ensures that the lease transfer is legally binding and protects the interests of all parties involved, including the landlord. A lease transfer agreement is suitable when assigning rights and obligations under commercial and residential leases or short-term rental contracts.
The parties involved in an assignment of lease agreement are
- Assignor. An individual, business, or organization that is a tenant under a current lease agreement. This is a person who wants to transfer their rights and obligations under the lease agreement to another party.
- Assignee. Any third party who becomes a new tenant under the lease assignment agreement.
Having a solid written lease assignment agreement template is essential for many reasons:
- First, a written document minimized the risk of potential disputes between the parties;
- Second, a written document serves as a solid record of a landlord’s approval for an assignment.
- Third, a lease transfer agreement ensures compliance with federal and state laws.
How to draft a sample assignment of lease agreement?
Creating an assignment of lease agreement is not an easy task, even for lawyers. We’ve got you covered. Below, we made a short FREE list of the most essential tips you need to know before drafting your lease assignment agreement from scratch.
Tip No. 1: Landlord’s Consent
Entering an assignment of a lease agreement is only possible after a landlord’s permission. This is a written authorization issued by a property’s owner or manager. Such an authorization cannot be obtained post-factum—i.e., after signing a lease assignment agreement.
If, however, the text of the original lease agreement allows assignment of rights and obligations without any prior approval, you can proceed with signing a lease assignment agreement without receiving a prior approval.
Tip No. 2: Details of Lease
The text of every sample lease assignment agreement must include:
- name and date of signing of the original lease agreement;
- full name and contact details of a landlord;
- date of assignment (i.e., a date on which a third party becomes the new tenant); and
- full address of the leased property.
Tip No. 3: Scope of Assignment
Under an assignment of a lease agreement, a tenant can assign their liabilities under the existing lease in part or in full.
In case of a partial assignment, it means that an assignor remains fully liable if an assignee damages a rental property. Contrary to that, in the case of a full assignment, an assignee remains fully liable for any damage to a rental property.
Tip No. 4: Lead-Based Paint Disclosure
If your plan is to use this lease transfer agreement for a residential building built before 1978, the text of the document must include a lead-based paint disclosure.
This disclosure shall inform an assignee about the existence (if applicable) of lead paint elements in a rental property. Lead paint represents a serious danger to the health of people, especially for children and pregnant women.
Tip No. 5: Applicable Law
Another important element is the selection of applicable laws. This is a law of a state that shall apply to the provision of a sample lease assignment agreement. While the parties are free to choose the laws of any state, the most common options include:
- a state, the laws of which apply to the original lease agreement;
- a state where the rental property is located;
- a state where either the assignor or assignee is currently based or resides.
How to customize this agreement at FasterDraft?
To get a fully customized legal document, follow the easy steps below:
- Click the “Create Document” button.
- Answer simple questions in an assignment of lease agreement form.
- Select a template’s format—lease assignment agreement PDF or Word.
- Make a payment.
- Download, print, sign, and use the document.
Table of content
Frequently Asked Questions (FAQ)
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1. What is a lease assignment agreement, and how does it work?
A lease assignment agreement, also known as a lease transfer agreement, is a written arrangement when an existing tenant transfers their rights and obligations under the lease contract to a new tenant. This is a simple contract that defines the date of assignment, mutual parties’ rights and responsibilities, etc.
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2. Can I assign a lease without landlord approval?
No, before entering a sample lease assignment agreement, an existing tenant must apply for a landlord’s permit. This is a written authorization from a property owner or a property manager allowing a tenant to transfer their rights and duties under the existing lease agreement to another third party.
Failure to get such an authorization results in a transfer of lease agreement not being legally valid.
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3. What is the difference between a lease assignment and a sublease?
Under a sublease agreement, a tenant provides to a third party the right to use and occupy all or part of the rented premises, while the tenant remains responsible for any damage made by a third party to the rented premises. In simple words, a third party does not replace a tenant in the original lease. Thus, a tenant remains liable directly before a landlord for any damage done to the rented premises.
Contrary to that, under a lease assignment agreement template, a current tenant under the existing lease agreement is being replaced by a new tenant. Such a replacement, also known as an assignment, is only possible with a landlord’s prior written consent.
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4. Is the assignor still liable after lease assignment?
It depends on the text of the lease assignment agreement template. In some cases, an assignor and assignee may agree that once an assignee makes a breach of the lease, an assignor shall become liable for such a breach. The cases of a breach may include failure to pay rent on time, damage to furniture or appliances, etc.
However, in other cases, parties may wish to exclude any liability for an assignor once the assignment is completed.
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5. How do I get landlord consent for a lease assignment?
Before signing an assignment of a lease agreement, a tenant must seek prior written authorization from a landlord. Use the following tips below:
- First, a request for authorization should be made in writing;
- Second, a request should be sent in advance, not less than 14 days before the intended assignment date; and
- Third, a request should be sent to a landlord’s contact details provided in the original lease agreement.
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6. Can commercial leases be assigned?
Yes, this assignment of lease agreement could be used for various types of lease agreements, including residential and commercial leases, short-term rentals, etc.
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7. What happens if the assignee breaches the lease?
The consequences in case of an assignee’s breach of the lease agreement depend on the provision of the original lease assignment agreement. If, in the text of an assignment agreement, parties agree that an assignor must be responsible once an assignee commits the breach of the lease, in that case an assignor will be the person to repair or compensate for the damage.
If, however, the text of an assignment of lease agreement prescribes that an assignee remains responsible for any damage, in that case an assignee must compensate for the damage. Apart from that, a landlord may seek early termination of the lease agreement.
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