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Assignment of Lease
When entering into a lease, one exit strategy contemplated by many a tenant is to assign the lease to a third party prior to the expiration of the term of the lease. Generally, however, a landlord will not allow the tenant to be released from liability under the lease as part of the assignment; rather, the assignment will serve to add the prospective assignee as a party that would be liable under the lease, but the tenant will continue to be liable under the lease during the pendency of the term of the lease. As a result, there are several issues that should be addressed by the tenant in the assignment document in order to reduce or contain the tenant's conditional or potential liability under the lease.
This article addresses those issues a tenant should attempt to address in the assignment document in order to limit the tenant's potential liability under the lease.
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