Oregon Assignment of Rents

Definition of "Assignment of Rent" An Assignment of Rent is a document needed when a mortgaged property is being rented. It enables the lender to collect the rent if the mortgage is defaulted upon.

Most often, the lease won't permit assignment without the landlord's approval, but leases often state that the landlord cannot unreasonably withhold consent. As long as you produce a tenant who's shown a history of payment under prior leases and has been a model tenant, a landlord should consent to assignment.

Sometimes called Assignment of Leases, Rents and Profits or simply Assignment of Rents, this is a document attached to a mortgage loan agreement which entitles the lender to any income (from leases, rents, etc.) derived from the property once the owner defaults on the loan.

The general assignment document creates an interest in present and future leases and rents.A specific assignment of lease is used where the lender is interested in one particular lease only. Often this arises where the premises have one strong tenant under a long-term lease.

COLLATERAL ASSIGNMENTS. OF LEASE. Separate from a traditional as- signment of lease is a collateral assignment and assumption of lease whereby a landlord and ten- ant agree that a certain third party has a security interest in the lease pursuant to a separate agreement.

When you buy a rental property, you'll sign an equivalent document called a "deed of trust with assignment of rents." This deed puts teeth in the lender's security interest by giving it the right to collect rents directly from the tenant if you default on the mortgage payments.