How Can Commercial Real Estate Lawyers Help You with Assignment of Commercial Lease?
An assignment of a commercial lease takes place when an existing tenant transfers its, interest, rights and obligations with respect to the leased property to another party prior to the expiry of the original lease. In simple words, this usually occurs when the business owner is selling the business or wants to leave a lease that hasn’t expired but business is no longer viable.
Assignment of a commercial lease is dependent on the terms of the original lease. Absent any restriction in the original lease, the tenant will have the unlimited right to assign its interest. However, all commercial leases include a provision that expressly restricts the tenant’s right to assign and involves requirement of obtaining a consent from the landlord.
The landlord may or may not permit the assignment at all or may permit it on certain terms and conditions only. Certain notices of assignment delivered to the landlord may cause your lease itself to go into default.
You must get the original lease reviewed by a commercial real estate lawyer to understand the terms and conditions under which the landlord may allow you to assign the lease.
The landlord may consent to the assignment of lease to the new tenant; however, the landlord may require you as the original tenant to remain liable under the lease. Most of the leases make this a condition to the assignment. It means that if the rent that is not paid by the new tenant, you will responsible for paying the rent. In such cases it is imperative that you must choose the candidate for the assignment extremely carefully.
How can a commercial real estate lawyer help you?
Commercial real estate law is intricate and varies depending on the jurisdiction and terms of the lease. When considering an assignment of lease, it is essential that you contact a commercial real estate lawyer who is knowledgeable about these contractual documents. The professional can assist throughout the whole process and help you lawfully complete the transfer.
Most small business owners and individuals consider leasing a commercial space a better option than owning a commercial real estate. However, there are no standard commercial lease agreements. Wherever possible, exceptions to the consent requirements in case of assignment of lease, should be negotiated into the lease at the commencement.
If you are looking for a help in reviewing or negotiating a commercial lease, you should contact a commercial real estate lawyer to help you.
While we assist our clients throughout the entire process when negotiating a commercial lease, we can help you to ensure that your interests are represented while you are assigning or sub-leasing.
Don’t hesitate to contact us at 905-405-8100 whenever you need any help with problems associated with Commercial real estate.