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Lease assignment agreement

A lease assignment agreement transfers the entire remaining lease — every right, every obligation, the full term — from the current tenant to a new person called the assignee. Unlike a sublease, the outgoing tenant steps out of the picture, and when the landlord signs a release (a novation), the original tenant is freed from future liability.

How assignment differs from sublease

	Assignment	Sublease
Portion of term	All remaining	Part
Original tenant liable after?	No — if novation	Yes — remains primary
Rent paid to	Landlord directly	Sublessor
Landlord consent	Required in nearly all leases	Required in nearly all leases

Core terms of an assignment

Identity of assignor (current tenant), assignee (incoming tenant), and landlord.
Reference to the original lease by date and address.
Effective date of the assignment.
Statement that all rights and obligations transfer to the assignee.
Landlord consent and — ideally — release of assignor (novation).
Transfer of the security deposit or a fresh deposit from the assignee.
Acknowledgement by assignee that they have read the lease.

Sample wording

LEASE ASSIGNMENT AGREEMENT
This Agreement, dated [date], is between [Assignor] (the current tenant), [Assignee] (the incoming tenant), and [Landlord].

1. Assignor hereby assigns all rights, title and interest in the Lease dated [original lease date] for the premises at [address] to Assignee, effective [effective date].
2. Assignee assumes all obligations under the Lease for the remainder of the Term.
3. Landlord consents to this assignment and releases Assignor from all further obligations under the Lease arising on or after the effective date.
4. The security deposit of $______ shall be credited to Assignee upon Assignee's payment of the equivalent sum to Assignor.

Signatures: Assignor / Assignee / Landlord

Watch for novation

The critical question is whether the landlord signs a release (novation) or only a consent. Without a novation the assignor can remain liable for rent even after leaving — many landlords agree to the assignment but will not formally release the assignor. Read the signature page carefully; if there is no express release, assume the assignor remains on the hook.

India practice

Section 108(j) of the Transfer of Property Act 1882 allows assignment unless the lease prohibits it — and almost every Indian lease does. In corporate leases and commercial tenancies, a tripartite assignment-and-novation deed is the standard vehicle, registered where the original lease was registered.

FAQs

What is a lease assignment agreement?

A lease assignment agreement is a written contract in which a tenant transfers the entire remaining lease term — including all rights and obligations — to a new person (the assignee). Unlike a sublease, the original tenant is no longer the occupant, and with the landlord's consent can be released from further liability.

What is the difference between a lease assignment and a sublease?

In an assignment the entire lease is transferred for the rest of the term; the new person deals directly with the landlord. In a sublease the original tenant rents the unit (or a room) to someone else but stays on the master lease and remains liable to the landlord.

Does a landlord have to consent to a lease assignment?

Almost every residential lease requires the landlord's written consent, which cannot be unreasonably withheld in California and New York. A valid reason to refuse is insufficient income, poor credit, or a planned use that breaches the lease.