The assignment of a commercial lease transfers the obligations under the contract to another party. Compared to residential leases, commercial lease agreements are more complex and may result in additional liability in case of failure to meet the contractual terms and conditions.
In this article, you will discover how to assign a commercial lease in Florida.
Assignment of Commercial Lease Agreement – The Essentials
A commercial lease agreement establishes a contractual relationship between a landlord and a tenant. When the current tenant opts for an assignment of lease, one is transferring the interest and obligations under the lease to a new commercial tenant.
After receiving the assignment, the new tenant assumes the responsibilities outlined in the commercial lease agreement, including the payment of rent. Conversely, the original tenant is released from its contractual duties, either partially or fully depending on the terms of the assignment.
It is crucial to understand that an assignment of a commercial lease is not the same as a sublease. In a sublease, the tenant remains liable for the contractual obligations established by the commercial lease with the right to sublet the premises to a third party with limited rights.
In such cases, any failures incurred by a new tenant are also part of the responsibilities of the original tenant, including skipped rent payments. In an assignment of the commercial lease, the old tenant transfers the liability (in part or full), which automatically places the burden on the new tenant.
Assignment of Commercial Lease Florida – Taking a Closer Look
The terms and conditions of commercial lease agreements vary depending on each landlord-tenant relationship, but it is safe to guarantee that commercial leases have a superior level of complexity not known to residential contracts.
Navigating these troubled waters without the guidance of a legal advisor is never the best strategy. The only reliable way to avoid future liability and costly mistakes for both parties involved are to consult with an expert lease attorney to find the best strategy for an assignment.
Once the parties have signed the lease agreement, the assignee must receive an original copy of the lease. The original tenant cannot assign more rights than those outlined in the original lease agreement.
As expected, most Florida commercial leases require the landlord’s written consent before the assignment happens. It is fundamental for tenants to communicate with their commercial landlords and review the language in the original lease to identify whether it is possible to assign the agreement.
The landlord is not always required to consent to an assignment of a commercial lease. In such cases, the solution varies depending on each case, especially if there is language in the document expressing the landlord’s “sole discretion” to veto an assignment without a specific reason.
If the original commercial lease does not have specific language or the landlord’s decision is not based on reasonable grounds, a well-versed contract attorney in Florida may find an alternative for a legal assignment.
How to Assign a Commercial Lease in Florida – Immediately Seek Legal Guidance
Waste no time with uncertainty. Contact Attorney Romy B. Jurado today by calling (305) 921-0976 or emailing [email protected] to find the best strategy for the assignment of a commercial lease in Florida.