Commercial property owners should always document the transfer of new tenants through a new lease agreement or an assignment and/or acquisition agreement. However, if this step has not been completed and their property is inhabited by a subtenant or assignee who is not the subject of a written lease agreement, the commercial owner should check the situation with an experienced real estate lawyer in order to be informed of their rights and possible ability to enforce the terms of the original lease agreement. Most commercial owners know that when a tenant sublets or assigns to a third party, the best practice is for the subtenant or pension beneficiary to execute a written sublease agreement and/or assignment/acquisition agreement before the subtenant or assignee authorizes the use of the property. Other courts have supported Arizona`s position that, where the new tenant lives on the premises and pays the rent on the terms of the tenancy, the legal effect is a presumption of assignment of rent, even in the absence of a written agreement, which transfers obligations under an existing lease to a new tenant. References: www.questbrook.co.uk/commercial_docs/Assignment_of_Commercial_Lease.html www.realtown.com/words/assignment-of-lease If a tenant wishes to withdraw from an unenatured lease agreement, one of the legal options is to assign or transfer the lease to someone else. For example, if a person signs a 12-month commercial lease and the company stops working after 10 months, that person can still choose not to pay the remaining two months by rejecting the lease. The document attesting to the transfer (from the original customer to the incoming tenant) is called an “assignment contract”. Depending on the rental agreement, there may be different requirements that must be met before the original tenant can be exempted from any rental liability. The most important thing is that, in most cases, the landlord must accept the rental transfer through a document called “License to Assign”. It is important to have this form signed before proceeding with the next steps of the “assignment of the lease”, otherwise the landlord may refuse to authorize the assignment later. Other circumstances that may allow the lessor to refuse to give consent are generally available under the heading “Assignment” of the lease agreement. The assignment of a lease is not the same as a sublease, although the two terms are often confused. In the case of an assignment of rent, there is a direct relationship between the new tenant and the landlord, since the lessor would ask for rent directly from the new tenant after he took over the rent.
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