Let’s say you’re selling your business and were lucky enough to quickly find a keen buyer. As part of the process, you offer to transfer your existing lease to the buyer to save them the trouble of entering an entirely new lease.
The buyer agrees, and you are now transferring your obligations under your existing lease to the buyer, who will now be using the premises.
This is known as a Transfer of Lease (or a Deed Of Assignment Of Lease).
What Is A Transfer Of Lease?
A Transfer Of Lease is a process of transferring your obligations under a lease to another party. So, it’s the same lease, but someone else will take your place as the lessee (tenant).
In the example we used at the beginning, this new party would be the buyer of your business. However, a transfer of lease isn’t limited to a sale of business. It can also be used in situations where you simply want to exit your lease, and another party would like to occupy the premises and is happy to simply take on the existing lease with the landlord.
Either way, it’s important to have a well drafted Deed Of Assignment Of Lease to ensure that all of your obligations are transferred properly. The last thing you want is to still be under obligations for a lease you are no longer under.
What Terms Should It Include?
The Deed Of Assignment should cover some key terms about the transfer of obligations, including:
- Landlord’s consent
- The assignment date
- The tenant’s agreement to transfer their entire interest in the lease to another party (the new tenant)
- The new tenant’s agreement to take on these obligations (this could include payment and maintenance duties)
Why Do I Need To Have It Reviewed?
When it comes to any agreement, having the right terms is crucial to managing the risks involved. For a Deed of Assignment, it’s important that all the existing obligations are transferred to the new tenant, otherwise the old tenant may still have duties for a lease that they are no longer a part of.
Getting a lawyer to help you out is always a good idea. They can check whether you’ve satisfied all the requirements (such as obtaining the landlord’s consent) and basically ensure that you’ve got nothing on your plate once you’ve exited your lease.
Where Can I Get A Lawyer To Help Me?
Getting legal help is easy with Sprintlaw. We offer a Transfer Of Lease Review package which includes:
- A review of the Deed of Assignment of Lease and Lease Transfer Form (if applicable)
- Phone consultations with a Sprintlaw lawyer who can advise you on the legal issues that apply to you
Reviewing a Transfer of Lease can be a tricky process, as you need to make sure you’ve covered all your legals. Sprintlaw is happy to help – our team of expert lawyers can answer your legal questions.
If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or firstname.lastname@example.org for a free, no-obligations chat.
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