Digging the Dirt is a law blog on commercial property law in England, by Jon Dickins. Can Your Landlord Stop You?
An assignment of a commercial lease occurs when a tenant transfers all of his interest in a leased property to another party before the original lease expires. The original tenant may also be released from liability in the event of a breach of the lease by the new tenant. What Is a Sublease of a Commercial Lease?
A sublease of a commercial lease occurs when a tenant transfers all or part of his interest in a leased property to another party before the original lease expires. The original tenant remains liable for all damages in the event of a breach of the lease. The right of a tenant to sublease or assign a commercial lease is determined by the terms of the lease.
The terms of the lease may expressly prohibit the tenant from subleasing or assigning or they may allow the tenant to sublease or assign only with the landlord's consent or if certain conditions have been met. Some jurisdictions prohibit a landlord from withholding consent unreasonably.
In the absence of a provision in the lease stating otherwise, a commercial lease can generally be assigned or subleased. The ability of a tenant to sublease or assign a commercial lease can always be negotiated when signing or renewing a lease.
In addition to any other remedies for breaching the lease, the landlord or tenant may recover contract damages caused by the other's breach and may also terminate the lease agreement. Commercial real estate law is complex, varies by jurisdiction, and varies depending on the terms of the lease.
An experienced real estate attorney can make certain that your sublease and assignment interests are represented when negotiating a commercial lease. A real estate lawyer also can help you draft sublease or assignment agreements and can determine if the sublease or assignment provision of the lease has been violated.Assigning a commercial lease is one of the ways tenants can end a lease early: a halfway house between terminating and sub-letting where the entirety of the existing lease is transferred to a 3 rd party.
However you need to be careful as a lease is a legal contract and your landlord can take you to court if . The lease assignment is a document that allows a tenant to transfer their interest in a lease agreement to another individual or entity. The party that is accepting the assignment will be agreeing to the terms and conditions of the lease agreement that was signed under the original tenant and will be legally liable to its commitments, terms, and/or conditions.
Assigning a Retail Lease Background. Any “Retail Lease”, that is, a lease of a shop that falls under the provisions of the Retail Leases Act (usually being, but not limited to, a shop for carrying on the businesses which appear on the list set out in Schedule 1 of the Act) may be transferred or “assigned”.
The terms of assignment, consent of the lessor, and acceptance by the assignee are covered in this Lease Assignment, including the length of the assignment, consent of the person taking over the lease, and acceptance by you, the current lease holder. The Assignor wishes to assign and transfer to the Assignee that lease (the "Lease") dated September 3, , and executed by the Assignor as tenant and by _____ as landlord (the "Landlord").
A tenant with a lease is responsible for paying the rent up-to the end of the lease. Tenants who want to move out before the end of the lease, normally have the option to sublet or assign their unit, which means the new tenant will be responsible to pay rent for the remaining months of the lease.