Assignment of Lease: How It Works and Parties Involved
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What is an Assignment of Lease?
The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.
You can view an example of a lease assignment here .
How Lease Assignment Works
In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.
However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.
Difference Between Assignment of Lease and Subletting
A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.
The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.
A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.
Here are some key differences between subletting and assigning a lease:
- Under a sublease, the original lease agreement still remains in place.
- The original tenant retains all responsibilities under a sublease agreement.
- A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
- Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
- Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
- The third-party in a sublease agreement does not have a direct relationship with the landlord.
- The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.
Here is more on an assignment of lease here .
Parties Involved in Lease Assignment
There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.
For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.
You can read more on lease agreements here .
Image via Pexels by RODNAE
Assignment of Lease From Seller to Buyer
In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.
The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.
You can read more on buyer-seller lease assignments here .
Get Help with an Assignment of Lease
Do you have any questions about a lease assignment and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in lease assignment.
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Meet some of our Assignment of Lease Lawyers
Elissa L.
Elissa L.
I am a corporate and healthcare attorney with 20+ years of experience providing contract review, contract drafting, and regulatory compliance support to healthcare organizations, SaaS companies, and small to mid-sized businesses. I currently serve as Managing Attorney at my own firm, advising clients on commercial contracts, healthcare compliance, corporate governance, and risk management. I routinely draft, review, and negotiate MSAs, NDAs, BAAs, provider agreements, SaaS agreements, consulting agreements, independent contractor agreements, and confidentiality agreements. My experience includes serving as sole in-house counsel, supporting executive leadership, and leading HIPAA, FDCPA, CMS, Anti-Kickback Statute, and False Claims Act compliance initiatives. I bring a practical, business-focused approach to legal services with deep experience in healthcare operations, revenue cycle management, privacy, information security, and regulatory strategy. I am licensed in Texas and hold a Juris Doctor (JD), Master of Healthcare Administration (MHA), and a graduate certificate in Health & Hospital Law.
"Excellent work. She was very responsive, delivered high quality work, and stayed on budget. Extremely professional from start to finish. I highly recommend her."
Alton H.
I am a U.S.-licensed attorney with more than a decade of experience in complex litigation and intellectual property matters. I have practiced at leading Am Law firms including Pillsbury Winthrop Shaw Pittman, Arent Fox, and Sughrue Mion, and I currently operate my own law practice. I have extensive experience handling high-stakes patent litigation, drafting pleadings and briefs, managing large-scale discovery, preparing and defending depositions, and appearing before federal courts and administrative bodies such as the PTAB and ITC. I hold a J.D., cum laude, from The George Washington University Law School and advanced technical degrees in chemistry and chemical engineering, which allow me to efficiently handle technically complex matters. I am admitted in multiple jurisdictions, including New York, Virginia, New Jersey, and the District of Columbia, and I regularly provide high-quality remote legal support to clients nationwide.
"Alton completed my work in a reasonable time and was flexible in terms of budget."
Tim B.
Attorney Tim Baldwin is the founder of Property Management Law Solutions, PLLC, a Florida law firm that specializes in representing landlords, property owners, apartments, and property management companies in a variety of property related legal matters, like evictions, security deposit disputes, fair housing matters, civil defense, damages actions, risk mitigation, partition, code violation, lease enforcement, and other real property litigation. Starting as a prosecutor from 2004 to 2006, Tim Baldwin gained invaluable experience as a courtroom litigator and to date has tried nearly 60 jury trials. When he opened his law practice in 2006, Tim focused his law practice on helping landlords in the Florida Panhandle. Since then, Tim Baldwin has expanded his law practice across Florida and become known as one of the premier Florida attorneys in landlord and property law. Tim regularly speaks at events for real estate groups, such as apartment and property management associations and real estate investment groups. Tim also hosts his own podcast, Property Management Law Solutions Podcast, where he discusses a wide range of landlord and property management related topics, and is frequently asked to be a guest on other podcasts nationwide.
December 9, 2025
Kevin F.
Hi, I’m Kevin Flaherty, an Illinois-licensed attorney with extensive experience negotiating and drafting complex commercial agreements for engineering firms, technology companies, public agencies, and small-to-mid-sized businesses. Over the course of my career, I’ve: Led negotiations on domestic and international contracts, including engineering services agreements, EPC arrangements, SaaS licensing, MSAs, purchase/supply agreements, NDAs, and other mission-critical commercial documents. Developed risk-allocation strategies around indemnities, liability limits, flow-downs, multi-party contracting structures, and high-stakes project frameworks. Built contract playbooks, drafting standards, review matrices, and workflows designed to help clients understand their risks clearly and move deals forward with confidence. Provided training and guidance to internal teams and leadership on contract strategy, compliance considerations, and best practices. I bring not only legal expertise, but also a practical, problem-solving mindset—translating dense legal terms into actionable business decisions and helping clients protect their interests without losing momentum.
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Robert F.
I’m a commercial contracts attorney who helps growing companies get out of contract chaos and into something sustainable. I focus on the agreements that sit at the core of how companies operate—customer contracts, vendor deals, SaaS agreements, and supply and distribution relationships. Before going independent, I worked in private practice and embedded legal roles supporting technology, consumer goods, and manufacturing businesses. That experience shaped a practical, business-first approach to contracts: clear drafting, efficient negotiation, and advice grounded in how companies actually operate. I hold the CIPP/US credential and have completed AI governance training, which informs my work on data, privacy, and AI-adjacent risk terms commonly found in modern commercial agreements. If you want contracts that are clear, balanced, and usable by the people who sign and manage them, that’s where I’m most effective.
Aury L.
I am an experienced U.S. attorney focused on contract drafting, review, and transactional legal support for businesses and individuals. My practice emphasizes clear, practical, and risk-focused legal guidance across commercial agreements, corporate matters, and regulatory compliance. I work efficiently in remote, document-based engagements and prioritize responsiveness, precision, and business-oriented solutions. Clients value my ability to translate complex legal issues into actionable advice and well-structured agreements that support their objectives while minimizing risk.
John P.
specializes in corporate governance, data privacy, intellectual property, and employment law. A former VP of Legal & Compliance and interim CFO, he has led legal operations across fundraising, acquisitions, and data privacy initiatives.
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Assignment of Lease
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Contract to lease land from a church?
I’m planning on leasing land from a church. Putting a gym on the property. And leasing it back to the school.
Donya G.
Ok; first step is that you will need a leasing contract with the church. Ask them to prepare one for you so you would just need an attorney to review the agreement and that should cost less than if you had to be the party to pay a lawyer to draft it from scratch. You need to ensure that the purpose of the lease is clearly stated - that you plan to put a gym on the land so that there are no issues if the church leadership changes. Step 2 - you will need a lease agreement with the school that your leasing it do (hopefully one that is similar to the original one your received from the church). Again, please ensure that all the terms that you discuss and agree to are in the document; including length of time, price and how to resolve disputes if you have one. I hope this is helpful. If you would like me to assist you further, you can contact me on Contracts Counsel and we can discuss a fee for my services. Regards, Donya Ramsay (Gordon)
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