Assignment of Lease - Key Issues Part 2

With Trove Easton of Easton Lawyers, Maleny

Often when a business is sold the business owner does not own the property from which the business operates, in these circumstances an assignment of lease is required.

This refers to the transfer of a lease agreement from the current tenant (the assignor) to the new tenant (the assignee). This allows the assignee to take over the remaining lease term and to assume all of the rights and obligations of the original tenant under the lease.

We now follow on from our previous article covering the basic steps involved in this complex process.

3. Execute assignment

The assignor and assignee will need to sign the deed of assignment in the presence of appropriate witnesses, and the landlord may also need to sign the assignment to indicate their consent.

4. Register assignment

Once the assignment has been signed, it will need to be registered with the Titles Queensland. This registration provides notice to any third parties, such as mortgagees or other creditors, that the lease has been assigned.

It is important to note that there may be additional legal requirements or considerations depending on the specific circumstances of the assignment. For example, if the lease is for retail premises, the Retail Shop Leases Act 1994 may impose additional obligations on the parties. It is recommended that parties seek legal advice to ensure that all legal requirements are met, and that the assignment is completed properly.

How can Easton Lawyers help?

Easton Lawyers has been providing individuals and businesses with tailored local legal solutions for 16 years

If you need legal advice as a buyer or seller of a business or if you would just like to have a us look over the terms and conditions of your document, contact Easton Lawyers at 07 5494 3511 or by email: reception@eastonlawyers.com.au or eastonlawyers.com.au and arrange a time to discuss your needs us.

We do not charge for an initial consultation. If you are not sure that we can assist you, please come and talk to us. If it is something that is outside our area of expertise, we will refer you to another firm that we are satisfied will provide you with service and assistance to our standard.

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