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What is an assignee of a lease?

A lease assignment allows a tenant to assign and transfer the name of the lease, often the tenant, to someone else. The landlord must approve the tenant and, if accepted, an assignment will be executed by both parties. The assignee will be the new tenant and the original tenant will be released from the lease.

What is a specific assignment of lease?

by Practical Law Real Estate. An assignment used in commercial real estate loan transactions in which the borrower grants the lender a present assignment of a propertys leases and rents.

Who benefits from the assignment of rents clause?

This clause entitles the lender to collect rents from the mortgaged premises in the event of default by the borrower. This clause provides that during such default, all rents and incomes from the secured property will be paid to the lender to help reduce the outstanding loan balance.

Does assignment create a new tenancy?

On assignment, the assignors legal interest in a property is passed to the assignee who takes over that interest and becomes the tenant. All the terms of the original tenancy agreement apply to both the new tenant and the landlord, including the amount of rent payable.

What is the difference between assignment and transfer?

When used as verbs, assign means to set apart or designate something for a purpose while transfer means to pass or move from one person, place, or thing to someone or someplace else.

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