Assignment of Commercial Lease

This is a deed for the assignment of a property lease, to be used when a business which is operating from leased premises is sold and the purchaser choses to continue operating the business out of those leased premises.

Consider the following:

• The parties to the agreement will be the assignor, the assignee, the lessor and any guarantors. However, you will also need to consider whether there are any other parties who must provide consent to the assignment of the lease, such as the lessor’s mortgagor.
• This agreement provides that, on the date of the assignment, the assignor is released from obligations under the lease. However, in some instances the assignor may have ongoing liability. This aspect will need to be considered in the context of the various state leasing laws and what the existing lease states.
• Consider whether there are any conditions precedent to this assignment agreement becoming effective, such as the completion of the business purchase.