Lease Assignment Agreement

Assignment of lease agreement

A lease agreement business space cannot be terminated before the end of the term. Upon sale the current lease contract must be transferred to the new owner. For this you can use our lease assignment agreement.

In principle, the lessor (retail space, office space, catering establishments and the like) has an obligation to cooperate, unless there are well-founded objections. When renting out residential property other rules and regulations apply: it is possible to refuse without stating reasons.

What is the difference

A lease agreement assignment is not a new lease agreement. It is however a continuation of the current arrangements in the name of someone else. All rights and obligations are passed unchanged, including the rent. The agreement is signed by 3 parties: the lessor, the current lessee and the new lessee. In case of an acquisition of a catering establishment (in Dutch: overname van een horecaonderneming) the brewery is a co-signatory, so 4 parties will sign this agreement.

How to fill in the agreement

Fill in the name and address of the property. State the date on which the agreement will be transferred and registered in the name of the new lessee. By signing the agreement the new lessee will take over all obligations. The current lessee guarantees the payment of the rent until the date of transfer.

Summary

Includes the following provisions:

• Description of the parties;
• Details of the lease agreement;
• Date of transfer;
• Guarantees.

Context

This document can be used in the following situation:
An assignment of lease is a title document that transfers all rights possessed by a lessee to another party. This is usually the case when someone buys a company and the new owner wants to continue business operations at the same location.

In practice, a lessor will cooperate, however he does run a risk. The lessee is replaced by an unknown party. Before signing the agreement it is possible to ask for additional guarantees, such as a bank guarantee (in Dutch: bankgarantie) or a security deposit (in Dutch: borgstelling). Apart from that, the new lessee also has to take responsibility for obligations such as the security payment.