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An assignment of lease is an agreement which transfers rights of the tenancy from one landlord to another landlord. For example, if a warehouse or factory is sold with tenancy to a new owner who is also the new landlord of the industrial unit.
The assignment agreement definition is a portion of the common law that is in charge of transferring the rights of an individual or party to another person or party. The assignment agreement is often seen in real estate but can occur in other contexts as well.
Not only do assignment sales result in additional paperwork for the developer, but they are also unable to take part in the value increase of the property. Assignment sales may also lead to the devaluation of un-sold units if assignors sell for less than cost.
An Assignment of an Agreement of Purchase and Sale is when an original purchaser under an Agreement of Purchase and Sale permits a different party to take over the contract. New homes, condominiums and even re-sale properties can be assigned.
For example, someone may have bought a suite that's three years away from being completed, but recently had to relocate for a job. This buyer may need to sell their agreement to afford a property in their new city.