What is an Assignment of Lease?

Assignment of Lease

Assignment of Lease enables the current occupant to transfer all rights and obligations within a tenancy contract to a new occupant for the remainder of the term. This effectively releases the original occupant from ongoing responsibilities, though some agreements maintain secondary liability in case the assignee defaults.

Key Points

• Formal Transfer: Requires a written agreement and often the owner’s approval.
• Full Obligations Passed: Rent, maintenance, and compliance duties shift to the assignee.
• Common in Transitions: Ideal when relocating or downsizing.

This process benefits both parties: the outgoing occupant can exit commitments early, while the incoming occupant secures a suitable arrangement without initiating a separate contract. However, all involved must ensure compliance with ownership terms to avoid disputes.