Assignment of Lease Agreement by the Lessee

An Assignment of Lease Agreement by the Lessee is an agreement entered into by two persons, called the assignor and the assignee. With this agreement, the assignor who is the lessee of a real property, assigns or transfers the lease of the property such as land or building in favor of the assignee. The assignee will then become the new lessee of the real property for the unexpired portion of the lease agreement. The unexpired portion pertains to the remaining period of time the lease agreement applies and within which the assignee can use the leased property.

Further, an Assignment of Lease Agreement is subject to the approval of the lessor of the property, whose consent may be obtained by either the assignor or the assignee. The Assignment of Lease Agreement can also provide that certain obligations or clauses under the lease agreement will not apply to the assignee.

Lease agreements assigned under this agreement may either be a Commercial Lease Agreement or a Residential Lease Agreement. If the parties do not want the lease to be assigned by one in favor of the other but want the terms and conditions in a lease agreement to be changed instead, then a Lease Amendment Agreement may be used.

This document only applies to cases where the assignor is the lessee of the property and does not apply if it is the lessor who will assign the lease.

If the lessor wants to assign the lease agreement to another, he will have to terminate the lease agreement or wait for its term to finish before he can replace the lessee in which case, a Landlord's Letter to End Lease with a Definite Term can be used. If the lessor simply wants to allow someone else to collect the rent from the lessees, then a Special Power of Attorney may be used for that purpose.

How to use this document

The following information is necessary to complete the document:

• Information concerning the identity of the parties,
• The details concerning the lease agreement that will be assigned,
• An option for the parties to agree that certain parts of the lease agreement don't apply to the assignee (as the new lessee)
• If a security deposit exists under the lease agreement, the choice as to how it will be settled,
• The party responsible for obtaining the consent of the landlord or lessor,
• An option to ask for a fee for the assignment, and
• The term of the assignment of the lease agreement.

A copy of the lease agreement should be attached to this document.

If the document will be acknowledged, the parties (or their respective representatives) should present themselves before a notary public with all the original copies of the document and their attachments. The parties (or their respective representatives) should also bring a competent form of identification, such as a passport or driver's license.

If the document is acknowledged, the notary public will keep one original copy of the document. Both parties should each keep a copy of the document for their records.

Applicable law

The laws on lease are found in the Civil Code of the Philippines. The 2004 Rules on Notarial Practice is also applicable if the document will be acknowledged before a notary public.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.