A Lease Assignment is a document that enables a tenant to transfer the tenancy rights and obligations to another individual or party. In simple terms, it is a document used by an original tenant who wants to relocate from the rental units/property but has someone in mind to take up their place.
Lease assignment is usually common, especially in cases where a tenant is relocating and wants a relative or close friend to enjoy the benefits associated with such particular property or rental premises. However, before such assignments come into effect, the new tenant must be approved by the landlord. The new tenant will also be expected to sign a new lease agreement to take up the responsibility. Depending on the state, place of jurisdiction, or type of property, a lease assignment can be referred to as Lease Assignment or Residential Lease Assignment.
Lease Assignments do have other alternative names. Depending on your choice, you can use the following names to refer to Lease Assignment:
- Lease Assignment Agreement
- Lease Transfer
- Assignment Agreement and
- Lease Assignment Form
Parties Involved in the Lease Assignment Process
Basically, a Lease Assignment will always have two parties coming together to reach an agreement. These include the assignor and the assignee.
- The Assignor: This is the original tenant whose details are on the current lease and is thereby intending to transfer the obligations to another party.
- The Assignee: The assignee is the new tenant willing to take the new responsibilities from the old tenant.
Note that while the landlord’s details are included in the Lease Assignment, they are not a party signatory of the document itself. However, they may be required to give consent so as to allow the old tenant to assign the lease.
Why it is Needed
There are many reasons why a tenant may want to assign a lease. A lease assignment can occur when a tenant wants to move out of the property before the end of a lease term.
Here are other common reasons why an individual may need a Lease Assignment:
- If a tenant who is leasing a residential unit plans to relocate for work, marriage, or other reasons, they may want to have their residents leased to other tenants to reduce the costs.
- If a tenant leasing a commercial property wishes to move out for various reasons such as company relocation, downsizing, closure, or expansion. In that case, they may want to have their present premises be rented by a close business associate or friend.
Essential Elements of a Lease Assignment
There is some vital information that must be included in any Lease Assignment form.
Here are some of them:
Type of lease
First, you will need to mention whether the lease is residential or commercial.
The property’s location
Clearly describe the physical location and address of the property, including its street name, zip code, and state on which it is located.
Details of the parties
The details of key parties such as assignor, assignee, and landlord are mentioned. If there are other relevant parties such as property agents, negotiators/brokers, and witnesses, be sure to include them.
Original lease term
After you have written details of the assignor, assignee and landlord, you need to write the terms and conditions of the original lease agreements are listed. Basically, the original lease term will define the start and the end dates of the lease agreement.
Assignors continuing liability
The assignor’s continuity liability will indicate whether the old tenant will still be liable after the lease is passed to the assignee.
Lead paint disclosure
Lead paint to disclose is mandatory for properties built before 1978. If the property to be leased falls under this category, you will have to include the disclosure on your Lease Assignment Form.
Note that the Lease Assignment form should also have a copy of the original lease agreement signed by both the landlord and the old tenant. Also, another copy should be presented to the assignee for record purposes.
Writing a Lease Assignment
Writing a Lease Assignment can sometimes be challenging, especially for first-timers. Fortunately, we have provided you with what you need to know to write a Lease Assignment like a pro. Read on to learn the basic steps.
Step 1- The parties
In this first step of writing the Lease Assignment, you will include the following set of information:
- The name of the assignor
- The street address of the assignor
- The city and state in which the assignor resides
- The official name of the assignee
- The date on which the document is assigned and completed (date/month/year)
- The name of the landlord
- The street address of the property
- City and state where the property is situated
- A brief description of the property under lease
Step 2: Transfer of lease agreement
This part is often completed by the assignor and reviewed by the assignee. Some of the information that must be covered includes:
- The date that the lease will end so that the assignee can begin taking the lease obligations
- The date on which the lease shall terminate
Step 3: Signatures
This next step is associated with signature submission.
Here is some useful information you could include before appending respective signatures:
- Add the date on which the document shall be executed in the following format (day/month/year).
- Mention the name of the assignor behind their signatures
- Add the date in which the assignor appended their signature
- Signature of assignee
- Print the name of the assignee behind their signature
- Date in which the signature was added.
Step 4- Landowner’s consent
The landlord is expected to fill in the following information:
- The name of the landlord
- The city and street of residence
- The state in which the landlord lives.
- The date on which the assignor and the assignee agreed to transfer their lease agreement.
- The landlords’ signature
- The date of signing
Before the landlord signs the document, he or she should read and agree to the agreements made by the assignee and the assignor.
Involvement of a Landowner’s Consent for Lease Assignment
Generally, before the assignor engages the assignee in any form of agreement its required that you first consult the landlord or property owner. It is after the landlord gives consent to the agreement that the assignment becomes effective. Therefore, the landlord will review the original lease agreement and give out their okay.
Or, they can decide to make additional information to the original agreement before giving out their consent to make the transfer valid. Depending on the state where you live, landlords’ consent may not play much effect. Therefore, it’s important that you first check out your state’s regulations before making a move.
Difference Between Assigning and Subletting a Lease
Many people do confuse between assigning and subletting a lease. While it is true they resemble at some point; they also have some differences.
A lease assignment is a situation where a tenant transfers the lease obligations to a new tenant. Once signed, the assignment allows the new tenant to presume the new role while enjoying the landlord-tenant relationship. Note that under assignment, the original tenant may still be liable for any other damage or violations.
On the other hand, a subletting is a situation where an old tenant temporarily releases the rights and obligations to the new tenant using a sublease agreement. Usually, the landlord isn’t a key participant in the sublease agreement. However, they still have the right to hold the first tenant liable for their properties.
Liability in a Lease Assignment Process
Usually, a rental lease agreement should have a clause stating the continued liability. If at all it’s not included, then the landlord has the right to decide who will be liable for any damages within the property.
Preferably, the assignment should clearly state in advance whether it is the assignor or the assignee who is liable for the rental property.
Free Lease Assignment Templates
If you are a tenant willing to transfer the lease assignment to another third party, you will definitely need to write one. Luckily, we have provided you with customizable lease assignment templates that will ease the whole process for you. You can just download the templates from our site and find them. It’s that simple.
A Lease Assignment Form is an important document that helps tenants transfer lease interests to a third party. It helps the original tenant (assignor) to give all the interests to a new tenant, also known as the assignee. By this, the new take up the new responsibility as per the agreement. Therefore, if you are willing to create a lease assignment, the above-mentioned information will help solve your needs.