📘 What is an Assignment of Lease?

An Assignment of Lease is a legal agreement that allows a tenant (the assignor) to transfer all rights and responsibilities of their lease to another party (the assignee). The assignee becomes the new tenant, taking over the lease's terms and obligations for the remainder of the lease period.

This process is often used when the original tenant needs to vacate early without terminating the lease entirely.

📌 When and Why It’s Used

Assignment of lease is commonly used in commercial or long-term residential leases when the original tenant wants to exit before the lease ends. Instead of breaking the lease, the tenant finds someone else to take over—often to avoid penalties or maintain goodwill with the landlord.

It’s especially helpful in dynamic markets where business owners relocate, or investors need flexibility with leasing arrangements.

🧮 How It’s Calculated or Applied

There’s no formula, but the process typically requires written approval from the landlord, unless the lease explicitly allows assignment. The assignee takes over the lease "as-is," meaning they accept all terms, including rent and maintenance obligations.

The original tenant may still remain secondarily liable if the new tenant defaults—depending on how the assignment agreement is structured.

This transaction does not create a new lease but legally transfers the existing one.

✅ Pros

• Allows original tenant to exit lease without legal penalties
• Offers flexibility for business or life changes
• Maintains cash flow for the landlord with no vacancy period

⚠️ Cons

• Requires landlord approval, which may be denied
• Original tenant might remain liable if assignee defaults
• May involve legal fees or paperwork to complete the transfer