ASSIGNMENT OF LEASE Meaning and
Definition
-
Assignment of lease refers to the transfer of an existing lease agreement from one party (the assignor or original tenant) to another party (the assignee or new tenant) with the consent of the landlord. In this legal arrangement, the assignor effectively transfers all rights, obligations, and interests associated with the lease to the assignee. The assignment of lease enables the assignor to pass on their leasehold interest to another party, while the assignee takes on the responsibilities of the original tenant.
Typically, an assignment of lease requires the written approval of the landlord, as stated in the original lease agreement. The landlord's consent is crucial as it ensures that the assignee is capable of fulfilling the terms of the lease, such as making rent payments and adhering to the lease's obligations and conditions. Once the assignment is complete, the assignee assumes all contractual obligations and becomes the new primary tenant, while the assignor is relieved of their obligations under the lease.
It is important to note that an assignment of lease does not release the assignor from their liability for any past breaches or unpaid rent that occurred prior to the assignment. Therefore, the assignor may remain liable to the landlord even after the lease has been assigned, unless a separate agreement is reached with the landlord to release them from these liabilities.
Overall, an assignment of lease is a legal process that facilitates the transfer of a leasehold interest from one tenant to another, with the landlord's consent.
