Selling or buying a property!

Assignment of Lease - Key Issues – Part 1 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.

Assignment typically involves the following steps that we will review over the next couple of articles covering the basic steps involved in this complex process.

1. Obtaining landlord's consent

Before an assignment can take place, the assignor must obtain the landlord's consent. The lease agreement may specify the requirements for obtaining the landlord's consent, such as providing financial statements or other documentation to demonstrate the assignee's ability to pay rent.

2. Negotiate and prepare assignment

Once the landlord's consent has been obtained, the assignor and assignee will need to negotiate and prepare a deed of assignment and related documents.

The deed will typically include the following: names of the assignor and assignee; description of the property being leased; terms of the lease; remaining lease term and any renewal options; rent amount and payment terms; obligations of the assignee (including maintenance and repairs, insurance, and compliance with lease terms); and conditions for terminating the lease.

How can Easton Lawyers help?

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 3555 or reception@eastonlawyers.com.au or https://eastonlawyers.com.au/ and arrange a time to discuss your needs us.

Web Address: http://eastonlawyers.com.au/

Easton Lawyers are your Local Lawyers in Maleny, Sunshine Coast Hinterland, Queensland, Australia.

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