Assignment and Assumption of Tenant's Interest (Commercial Lease Transaction) (Long Form)

by Practical Law Real Estate

A Standard Document long form assignment and assumption of lease agreement. Use this document when a tenant assigns its leasehold interest to a third party who then assumes the tenant's lease obligations. This Standard Document provides a comprehensive framework for transferring exclusive occupancy and control of the premises, detailing the rights, covenants, representations, and indemnifications involved in such transactions. It emphasizes the importance of landlord consent, the assignee's financial capabilities, and the necessity of conducting due diligence on the lease and premises. This document also addresses the implications of privity of estate and privity of contract, and the potential liabilities of the assignor and assignee. This Standard Document has integrated notes with important explanations and drafting and negotiating tips. While lease assignments are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.