Assignment of Lease (FL)

If a tenant wants to get out of a lease that is not yet expired, one option is to assign or transfer the lease to another party. For example, if a tenant signs a commercial lease for 12 months and the business stops working after 10 months, that person can attempt to assign the lease for the remaining 2 months. This can be done using an "Assignment of Lease," which is an agreement where the tenant (called the "assignor") transfers all of its rights and obligations under a lease to another party (the "assignee").

Assigning a lease is not the same thing as subletting, although the two terms are often confused. In the case of an assignment of lease, there is a direct relationship established between the new tenant and the landlord, as the landlord collects rent directly from the new tenant. In the case of a sublease, the original tenant is still responsible for all the conditions stated in the lease agreement, even if there is a new tenant who pays the rent.

This particular assignment is suitable for both commercial and residential properties, and can be prepared by the tenant (the "assignor") or the landlord. Note that in most cases the tenant must get the landlord's written consent to assign its interest under the lease and this agreement has options to include that written consent with the assignment.