Creating a lease assignment agreement requires attention to detail and clarity. Here are the steps you can follow when drafting one:
1. Begin With Some Clarity Over the Assigned Date
Specify the effective date of the assignment. This date marks when the assignee assumes responsibility for the lease.
2. Come to Terms With the Master Lease’s Basic Terms
The lease assignment agreement should clearly outline the terms and conditions of the original lease, including rent amount, security deposit, and any specific provisions. Including these terms in the lease agreement assignment ensures clarity of the new tenant's responsibilities. It helps avoid confusion or conflict between the landlord and the new tenant.
3. Clarify Any Covenants Regarding the Master Lease
Highlight any obligations, restrictions, or covenants from the original lease the assignee must uphold. One example of a covenant is that the lease requires you to keep the garden in good shape. Remember to inform new tenants of these covenants, if they exist.
4. State The Default And Nonpayment Recourse
Detail the consequences of lease violations, including defaults and nonpayment of rent, to protect both parties' interests. Some agreements may include alternative dispute settlement clauses. The new tenant should be aware of what to expect.
5. Proofread the Document
Ensure the lease assignment agreement is error-free and inconsistencies-free to prevent future disputes. It is advisable to seek a second set of eyes to help proofread the document because sometimes you may need help spot the errors. It would help if you got a lawyer as they can inform you of whether the document complies with relevant laws and regulations.
6. Gain the Consent of the Stakeholders
If the original lease requires the landlord’s consent for assignment, obtain it in writing before proceeding. The landlord's consent is vital in such instances. If it lacks, the legal assignment agreement may be considered invalid and not recognized by the law.