What is a Lease Assumption Agreement?
If you need to leave a property before your lease is up, a Lease Assumption Agreement enables the tenant to transfer the lease to another person, known as the "assignee." This process needs to be approved by the landlord. Note that a Lease Assumption Agreement does not relieve the original tenant, who has transferred the lease to the assignee, from their contractual obligations under the original lease. Instead, the original tenant is jointly responsible for the terms of the lease with the assignee. For instance, if the assignee fails to pay the rent, or the property is damaged, the landlord may sue either (or both) the original tenant and assignee to reclaim any damages or monies owed.
A Lease Assumption Agreement is commonly used when the current tenant is moving permanently, and does not intend to return to the property. If the tenant plans to be away from the property temporarily, and return during the lease period, a Sublease Agreement can be used instead.
When to use a Lease Assumption Agreement:
- You are a Tenant that is planning to move out of an apartment or residential rental property prior to the expiration of your Lease and you would like to have another person assume your Lease.
LEASE ASSUMPTION AGREEMENT
THIS AGREEMENT is hereby made and entered into effective as of by and among , , , , , , , , , and , , , , .
WHEREAS, Landlord and Tenant entered into a Lease Agreement dated , wherein Landlord leased to Tenant certain premises located at , , , , subject to terms and provisions more particularly contained therein; and
WHEREAS, Tenant has requested that Landlord consent to the assignment of Tenant's interest in the Lease to Assignee, and Landlord has agreed to consent to such assignment, provided that Tenant is not released from liability upon the Lease and Tenant and Assignee shall remain jointly and severally liable thereupon.
NOW, THEREFORE, for and in consideration of the premises, the assumption of the Lease herein described by Assignee, the consent of Landlord to the assignment of the Lease by Tenant to Assignee, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties covenant and agree as follows:
|1.||Assignment and Assumption of Rights and Obligations by Tenant|
Tenant hereby assigns all of Tenant's right, title and interest in and to the Lease to Assignee and warrants to Assignee that Tenant is not currently in default under the Lease. Landlord consents to the assignment of Tenant's interest in the Lease by Tenant to Assignee, waives its right to declare a default in the Lease by virtue of such assignment, but only for purposes of such specific assignment, and acknowledges that Tenant is not in default under the Lease.
|2.||Obligation of Assignee|
Assignee hereby assumes and agrees to perform and pay all the obligations and payments of Tenant now and hereafter owing to Landlord pursuant to the Lease. Assignee shall perform all the obligations of Tenant required in the Lease. Tenant shall not be released by virtue of such assumption or assignment of the Lease to Assignee, and Tenant shall continue to be unconditionally and jointly and severally liable upon the obligations and payments assumed here-under, pursuant and subject to all the terms and provisions of the Lease. All of the covenants, agreements and provisions referring to Tenant in the Lease shall also be applicable to Assignee.
Both Tenant and Assignee shall remain jointly, severally and unconditionally liable upon the Lease not withstanding any action, or omission to act, which may hereafter be taken or suffered on the part of Landlord, and not withstanding any future modifications, extensions and renewals of the Lease; provided that Tenant shall not be responsible for rental during the period of any Lease extension or renewal between Landlord and Assignee, unless Tenant consents in writing to such extension or renewal.
This instrument and the Prior Lease Agreement constitutes the entire agreement of the parties with respect to the subject matter herein contained and may not be amended or modified except by an agreement in writing executed by all of the parties hereto. This instrument is severable such that the invalidity or unenforceability of any provision herein contained shall not impair the validity or enforceability of the remaining provisions.
This instrument shall be governed by, and construed in accordance with, the laws of the .
IN WITNESS WHEREOF, this instrument has been executed by all parties with the intent of being legally bound.