What Is a Lease Assignment Agreement?

A Lease Assignment Agreement, also known as a lease transfer or an assignment of lease, can be used for both residential and commercial leases.

A Lease Assignment Agreement:

• Allows the original tenant (the assignor) to transfer their remaining lease obligations to a new tenant (the assignee)
• Specifies the conditions of the assignment, such as obtaining the landlord's consent
• Notes whether the assignor is liable for breaches made to the lease by the assignee

What's the Difference Between Subletting and Assigning a Lease?

Tenants who need to get out of a lease early may have the option to sublet or assign their lease:

• Assigning your lease means to permanently transfer the lease to a new tenant. The assignee effectively takes your place in the lease, although you may remain liable for any debts or damages to the property
• Subletting involves creating a separate rental contract with a subtenant, which allows them to temporarily occupy the property. The original lease remains in place, so you are still accountable to the landlord

Why Do I Need a Lease Assignment?

There are a number of reasons that you may need to leave before your lease ends.

Reasons to assign a residential lease include:

• Relocating for work or studies
• Downsizing to reduce living costs
• Upgrading your living space
• Moving in with a partner
• Purchasing a home

Reasons to assign a commercial lease include:

• Relocating
• Downsizing to reduce operating costs
• Expanding to a larger commercial space
• Shutting down a seasonal operation

What Information Is Needed in a Lease Assignment?

Your Lease Assignment Agreement should include the following information:

• Type of lease: commercial or residential
• Assignor, assignee, and landlord information
• Original lease signing date
• Address of the property
• Length of the assignment
• Assignor liability

Am I Still Liable if I Assign My Lease?

The landlord typically decides whether the assignor is liable for breaches to the lease terms.

• If you're released from liability, only the assignee can be held accountable for missed payments or compensation for damages
• If you remain liable under the original lease, the landlord can go after both the assignee and you (the assignor) for missed payments or compensation for damages