Legal Definitions - assignment of lease

An assignment of lease occurs when a tenant transfers their entire interest in a lease agreement to another party. This means the original tenant (known as the assignor) gives up all their rights and responsibilities under the lease to a new tenant (the assignee). The assignee then steps into the shoes of the original tenant, becoming directly responsible to the landlord for all terms and conditions of the lease, such as paying rent and maintaining the property. Landlord consent is typically required for a valid assignment.

• Example 1: Residential Relocation

  Sarah signed a one-year lease for an apartment, but three months into her lease, she received an unexpected job offer in another city that required her to move immediately. Instead of breaking her lease and facing penalties, Sarah found a friend, Mark, who was looking for an apartment. With the landlord's written permission, Sarah formally transferred her entire lease agreement to Mark for the remaining nine months. Mark then began paying rent directly to the landlord and became responsible for all other lease obligations.

  This illustrates an assignment of lease because Sarah (the assignor) transferred all her rights and duties under the apartment lease to Mark (the assignee), who then assumed full responsibility for the remainder of the lease term.

• Example 2: Business Sale

  Maria owned a small boutique and had a five-year commercial lease for her storefront. When she decided to sell her business to David, part of the sale agreement included David taking over the existing lease for the remaining two years. After obtaining approval from the property owner, Maria executed an assignment of lease, transferring all her tenant rights and obligations for the retail space to David's new company.

  Here, Maria (the assignor) assigned her commercial lease to David (the assignee) as part of a business transaction. David's company now holds the lease and is directly responsible to the landlord for the commercial property.

• Example 3: Corporate Downsizing

  Tech Solutions Inc. had a long-term lease on a large office floor, but after implementing a new remote work policy, they realized they no longer needed such extensive space. They found a growing startup, Innovate Labs, that was in urgent need of a larger office. With the landlord's consent, Tech Solutions Inc. formally assigned the remainder of its ten-year lease for the office floor to Innovate Labs. Innovate Labs then took over the premises and all financial and operational responsibilities outlined in the original lease agreement.

  This demonstrates an assignment of lease where Tech Solutions Inc. (the assignor) transferred its corporate lease obligations and rights for the office space to Innovate Labs (the assignee), allowing the new company to occupy the premises under the existing lease terms.