Last Updated December 30, 2024
A Lease Assignment Agreement is a legal contract that tenants use to transfer their interest in a residential or commercial lease to someone else (the assignee). This means that the original tenants forfeit their rights to be tenants under the lease, and the assignee becomes the new tenant of the rental property.
A Lease Assignment can be used to transfer the lease to any type of property used in a Residential or Commercial Lease.
A Lease Assignment Agreement can also be referred to as a/an:
- Assignment of Lease
- Deed of Assignment of Lease
- Lease Assignment
- Lease Assignment Contract
- Transfer of Lease
- Assignment of Tenancy Agreement
The parties in a Lease Assignment Agreement are:
- Assignor: the tenant from the original Tenancy Agreement who is transferring their interest in the agreement to another person, corporation, or organisation
- Assignee: the person, organisation, or corporation who takes over the interest in the rental property
- Landlord: the person or organisation who owns the rental property
Yes. In most cases, you will need written consent from your landlord to assign your lease to someone else.
The only time you may not need your landlord's permission to assign your lease to another person is if the original Tenancy Agreement explicitly permits the tenant to assign the lease without the landlord's permission.
It is best to obtain written consent from the landlord when assigning either a commercial or residential lease.
Subletting is when a tenant transfers part of their rights and obligations in a lease contract to a third-party (a subtenant) but remains responsible for the original lease. Typically, the transferred responsibilities to the subtenant are only for part of the leased space (e.g. renting a specific room in the apartment suite) or for part of the lease term (e.g. renting the entire apartment to the subtenant for one month out of a yearly lease).
In a sublease, a new lease agreement is created where the original tenant acts as the landlord and the subtenant acts as the new tenant. However, the original tenant is still liable for the lease to the original landlord. For example, if rent isn't paid on time by the subtenant, the original tenant can be subject to consequences (like an eviction notice) from the original tenant's landlord.
In a Lease Assignment, the original tenant transfers all their rights in the lease agreement to the assignee. A new lease is not created, the original lease is simply transferred to a new person. The assignee will typically interact directly with the landlord (e.g. to pay rent, request repairs and maintenance, etc.), but the original tenant can still be held liable on the lease unless the landlord releases them of their liability.