assignment of sublease

What is Assignment of Lease and How It Differs from Subletting

The assignment of lease (and rent) is a foggy topic that is often confused with subletting. Let's clear the air once and all right now. Learn the differences between a lease assignment and sublease so you can make the right choice.

What is Assignment of Lease? - The Important Basics

Let's begin by introducing the 3 players in a lease assignment - The landlord, the original tenant (assignor) and the new tenant (assignee). The original tenant has an unexpired lease agreement with the landlord and he wants out. Since the original tenant can't just break the agreement and walk off, what he does is to get a new tenant to swap places... and take over all his rights and obligations for the remainder of the lease period. So if the original tenant signs a 1 year commercial lease and the business goes bust after 8 months, the new tenant will be assigned a 4-month commercial lease (with the same terms and conditions as the original agreement). Now here's the big catch: Even though the original tenant has handed over all his duties and obligations to the new tenant, he is not off the hook... unless the landlord agrees to release him from all liabilities. If the new tenant stirs up trouble, our dear original tenant will find himself in hot soup as well. Of course, whether the original tenant is allowed to pull this assignment trick out of his hat is a whole new matter. Knowing for sure is actually simpler than most people think: First, examine your local landlord tenant laws for any lease assignment rules. Most of the time, landlords are given the right to allow or disallow assignments but once in a while, the local law let tenants have the final say instead. If there's no mention of lease assignments in your law text, then your rental lease agreement shall dictate the terms.

Difference Between Lease Assignment and Subletting

When it comes to subletting vs assignment of lease, there's often a massive mix-up. Sometimes even real estate professional get it wrong by assuming them to be one and same thing. However if you dig deeper, you will find that the differences are not just numerous, but important as well. Let's begin by dragging the landlord into the picture. An assignment of lease launches the new tenant into a direct relationship with the landlord - The landlord collects rent straight from the new tenant and deals with the new tenant directly on all lease issues. So in this case, the original tenant gets to take back seat and doesn't have to manage the new tenant actively. On the other hand, there's no direct relationship between the landlord and new tenant (subtenant) in a sublease. Instead the original tenant plays mother goose and is responsible for collecting rent from the subtenant and making sure that he's following the lease rules. When you compare the two, a sublease is a lot more hands-on for the original tenant. No matter which path you take, you will still want a good new tenant who pays the rent on time and follows the lease rules to the agreement. For the golden rules on screening tenants and running credit checks, Click here for our guide to running tenant credit checks. When you have a lease assignment, the terms and conditions of the lease remains largely unchanged - It's almost like taking the original lease agreement and swapping the tenant's name with another. With a sublease, there's more breathing space - The original tenant can decide how much rent to charge, how long the subtenant is going to stay or even collect security deposit... as long as it stays within the boundaries drawn by the original lease agreement between the landlord and original tenant.

Should You Choose Assignment of Lease or Sublease?

You are the Landlord - A lease assignment is recommended in most cases. You will have more control over your new tenant (instead of leaving matters in the original tenant's hands and hoping that he would do a good job)... plus you still have the original tenant to cover your back in case anything goes wrong. You are the Original Tenant - Now this is a tricky one. If you want to someone to take over the entire lease and property for its remaining duration (e.g. your business goes belly-up and you no longer need the office), then help yourself to a lease assignment. If the landlord's consent is required for assignment (and he doesn't give the nod), you can always try offering him a lease assignment fee as a deal sweetener. However, if you are looking for someone to share the place (and rent)... or perhaps you need someone to cover the rent while you are overseas for a few short months, then a sublease would be ideal. You are the New Tenant - An assignment of lease works better for you most of the time. You won't be at the mercy of the original tenant (for example if he screws up and the landlord terminates the original lease agreement, your sublease might also go up in flames). But if you only want to rent part of the property... or don't want to tie yourself down for the remaining lease duration, then you are better off sticking to a sublease. Now that we have covered the topic of assignment vs sublease, go ahead and take your pick - Click here for an assignment of lease form or Click here for a sublet agreement instead.

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Assignment of Lease: How It Works and Parties Involved

Jump to section, what is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

• Under a sublease, the original lease agreement still remains in place.
• The original tenant retains all responsibilities under a sublease agreement.
• A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
• Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
• Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
• The third-party in a sublease agreement does not have a direct relationship with the landlord.
• The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

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Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

Do you have any questions about a lease assignment and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in lease assignment.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment of Lease Lawyers

Bilingual attorney currently employed as a staff attorney for Legal Services of Alabama. Previous legal background includes clerkship with Judge Dorothea Batiste in the field of Domestic Relations. Legal background also includes being an associate at the prestigious firm of Shelnutt & Varner. I performed criminal defense, family, probate, and personal injury services for the firm.

Matthew grew up in Leawood, Kansas. He graduated from the University of Kansas with a Bachelor of Arts degree in Political Science and Communications in 2016 and from the University of Kansas School of Law in 2019 where he received a Business and Commercial Law Certificate. During his time as an undergraduate, he worked at a consulting firm focused on political campaigns and corporate public relations. In May of 2020, he will receive an MBA with a focus on finance from the University of Kansas Business School. Matthew is interested in several practice areas including business and commercial law, arbitration, and civil litigation. In his free time, Matthew enjoys playing basketball, using his virtual reality headset and listening to audiobooks.

Katherine V.

I am a skilled legal researcher and writer with a background in contract drafting and negotiation as well as litigation. I've served as an arbitrator for the past three years and have presided over nearly 400 binding arbitrations for an online dispute resolution platform. Additionally, I am a content writer and editor for the insurance division of LexisNexis. In my role as a contractor for LexisNexis, I research, draft, and edit high-quality legal reference tools on a variety of insurance topics for use by lawyers and insurance industry professionals.

hawuki attended SUNY Binghamton where he graduated with a Bachelor of Science in Marketing and Leadership & Consulting. Shawuki then went on to pursue his Juris Doctorate from Western Michigan University Thomas M. Cooley Law (WMU Cooley). During his time at WMU Cooley, Shawuki served as Justice of Phi Alpha Delta Law Fraternity, International, Vice President of Entertainment of Sports and Entertainment Law Society, and an Associate Editor of the Western Michigan University Thomas M. Cooley Journal of Practical and Clinical Law. At the conclusion of law school, Shawuki graduated with cum laude honors earning a spot on the Honor Roll and Dean's List. Professionally, Shawuki is an attorney/contract advisor and a serial entrepreneur. As the Managing Attorney of The Hilton Law Firm, PLLC, Shawuki has aided over a dozen startups and existing businesses with contractual, regulatory, administrative, and other legal matters. As a Canadian Football League (CFL) Contract Advisor, Shawuki has negotiated multiple player contracts, ensuring just compensation for his clients. Entrepreneurially, Shawuki is an owner of multiple businesses and has a wealth of business experience. Shawuki is a member of the Florida and District of Columbia Bar, Phi Alpha Delta Law Fraternity, International, Phi Delta Phi Legal Honor Society, and was recently named to the National Black Lawyers Top 40 under 40 list Florida.

My main focus is estate planning and business transactions, but I have had many practice areas throughout my career, including criminal defense and prosecution, civil litigation from neighborhood squabbles to corporate contentions. I have also worked in bankruptcy, family law, collections, employment law, and personal injury. I stand ready to assist in any area to which I feel I can be of service, but will not try to fake it if I do not know the area of law I am being asked to serve in.

Dawn K Kennedy has been licensed to practice law since 2015, but has been an entrepreneur since 2011. She uses her extensive project management and business background to support small and mid-sized businesses with contracts, negotiations, and other matters relating to the operation of a successful business venture.

With over 10 years experience as a Real Estate Broker and an attorney, I can help you with all your residential real estate needs such as For sale by owner transactions and drafting grant deeds

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Assignment of Lease

Contract to lease land from a church?

I’m planning on leasing land from a church. Putting a gym on the property. And leasing it back to the school.

Ok; first step is that you will need a leasing contract with the church. Ask them to prepare one for you so you would just need an attorney to review the agreement and that should cost less than if you had to be the party to pay a lawyer to draft it from scratch. You need to ensure that the purpose of the lease is clearly stated - that you plan to put a gym on the land so that there are no issues if the church leadership changes. Step 2 - you will need a lease agreement with the school that your leasing it do (hopefully one that is similar to the original one your received from the church). Again, please ensure that all the terms that you discuss and agree to are in the document; including length of time, price and how to resolve disputes if you have one. I hope this is helpful. If you would like me to assist you further, you can contact me on Contracts Counsel and we can discuss a fee for my services. Regards, Donya Ramsay (Gordon)

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What is the Difference Between an Assignment and a Sublease?

by Pam Pester | Sep 17, 2019

Commercial real estate clients frequently ask how an assignment of a lease differs from a sublease.  The difference is primarily a legal one, although each achieves a similar practical result.

Assignment .  An assignment of a real estate lease is a complete transfer of the right to be the tenant under the lease.  The third-party assignee becomes the “tenant” under the lease, taking over all of the leased premises, and is substituted for the old tenant. The new commerial real estate tenant pays the rent required under the lease directly to the landlord and is treated as the tenant under the lease for all purposes.  However, the catch is that the assignor tenant, unless released from liability by the landlord, remains liable for the obligations under the lease if the new tenant defaults. The old tenant can be sued by the landlord for back rent and other obligations imposed by the lease if the new tenant fails to pay or perform as required by the lease.  Given that a commercial real estate tenant who assigns a lease remains liable for the default of the new tenant, tenants should try to negotiate an automatic release provision.  Unfortunately, many landlords are unwilling to make this concession. An alternative strategy is to ask the landlord for a release if the proposed new tenant is of similar financial strength and creditworthiness.

Sublease. A sublease is a new lease agreement between the real estate tenant as sublessor and a third party as sublessee for all or a portion of the leased premises. The original commercial real estate lease between the tenant and the landlord remains in place, unaffected by the sublease. This means that the tenant remains liable for monthly rent under the original lease, while collecting rent from the subtenant under the sublease, which may be more, less or the same as the rent due under the main lease.

A sublease can be for less than all of the leased premises, while an assignment that transfers the entire lease must be for all of the premises. A sublease is a more involved transaction, as it requires a full sublease document between the commercial tenant as sublessor and the sublessee.

Reasonable Consent .  The landlord must be reasonable in consenting to the proposed assignment or sublease. Under Florida law a landlord cannot be unreasonable or arbitrary in withholding consent to an assignment or sublease. Nonetheless, it is still better to state in the text of the lease that the landlord will be reasonable.

In drafting an assignment or sublease clause, the tenant’s goal is flexibility. Being able to assign or sublet excess space with minimal interference from the landlord and minimal liability in the event the new tenant defaults can be a tremendous benefit to the tenant as the business climate changes from year to year.

When you need assistance with your commercial  lease in Tampa, FL and surrounding areas contact Pam Pester, Owner and President of Mobiliti CRE.  Mobiliti CRE is an independently owned commercial real estate company specializing in exclusive tenant and buyer representation.

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Subleasing and Assignment Provisions in Commercial Leases

• June 17, 2020

Before the COVID-19 pandemic, many business owners paid little attention to subleasing and assignment provisions when negotiating commercial leases . It was common to focus on rent, maintenance, taxes, and insurance, which affect a tenant’s bottom line, and options to renew the lease if the business thrives. Recently, however, one of the top concerns of commercial tenants is flexibility in case they no longer need to use a portion, or all, of the leased space. In this context, subleasing and assignment provisions are key deal terms.

The Difference Between Subleasing and Assignment

A sublease does not alter the relationship between the landlord and the tenant, who remains liable for all of the tenant’s obligations under the lease. However, the tenant enters into a subordinate lease (the sublease) with a subtenant regarding a portion, or all, of the leased space. After a sublease is signed, the landlord interacts with the tenant, and the tenant interacts with the subtenant.

An assignment alters the relationship between the landlord and the tenant by assigning the tenant’s rights and obligations from the first tenant (the assignor) to the second tenant (the assignee). The assignee steps into the shoes of the assignor, and has a direct contractual relationship with the landlord. After an assignment of the lease, the landlord interacts directly with the assignee.

Important Deal Points Regarding Subleasing and Assignment

Leases may include many provisions regarding subleasing and assignment. Some of the most common issues include the following:

• In what circumstances is landlord consent required? Leases typically require the landlord’s consent for any sublease or assignment. However, some leases have different provisions for special circumstances, such as subleasing or assignment to a related entity, or assignment of the lease in connection with the sale of the tenant’s business.
• What is the standard for landlord consent? Provisions that require the landlord’s consent may be followed by a standard such as “in the landlord’s sole discretion,” or “which may not be unreasonably withheld.” Obviously, the second standard is more favorable to the tenant. However, as a practical matter, if a dispute arises regarding whether a landlord’s denial was reasonable or unreasonable, arbitration or litigation would be expensive, the outcome would be uncertain, and the prospective subtenant or assignee may be unwilling to wait to see how the dispute is resolved.
• What information must be provided regarding the proposed subtenant or assignee? Many leases require confidential financial information regarding the proposed subtenant or assignee. The proposed subtenant or assignee may be more comfortable providing information if the lease contains confidentiality and non-disclosure requirements to restrict the landlord’s use of the information. An argument can be made that less information should be required regarding a proposed subtenant than a proposed assignee, because the landlord will not enter into a direct contractual relationship with the subtenant and the tenant will remain liable under the lease.
• What are the landlord’s alternatives? A tenant might assume that if the tenant requests consent to a sublease or assignment, the landlord’s alternatives will be limited to granting or withholding consent. However, many leases give the landlord a third alternative, to cancel the lease if the tenant requests a sublease or an assignment. This is known as a right of recapture.
• When is the landlord’s response due? Some leases do not set a deadline for the landlord’s response to a request for consent to a sublease or assignment. A delayed response would prevent the tenant from moving forward until the response is received. A delayed response also may result in a lost opportunity, if the proposed subtenant or assignee is under time constraints.
• What is the effect if the landlord fails to provide a timely response? A lease may provide that if the landlord fails to respond to a request for consent within a specified period of time, then consent is deemed granted, or a lease may provide that in such circumstances, consent is deemed denied. The first alternative is more favorable for a tenant, but the prospective subtenant or assignee might not be willing to rely on a “deemed consent” provision and may require actual consent before moving forward.
• What are the landlord’s remedies if a sublease or assignment is made without requesting consent? Generally, if a tenant subleases or assigns a lease without obtaining required consent from the landlord, then the tenant is in default and the landlord can exercise all remedies under the lease. The lease also may provide that a sublease or assignment without the landlord’s consent is invalid and unenforceable.
• Will the assignor be released from liability for the tenant’s obligations after an assignment? It may seem like common sense that if a lease is assigned with the landlord’s consent, then the original tenant (assignor) will no longer be responsible for the tenant’s obligations under the lease. However, a lease may provide that the assignor will remain liable under the lease after an assignment. Similarly, the landlord’s written consent may state that both the assignor and the assignee will be responsible for the tenant’s obligations after the lease is assigned. In order to be released, the assignor should obtain a written agreement from the landlord stating that after an assignment, the assignor will no longer be responsible for the tenant’s obligations under the lease.
• Will a guarantor be released from liability for the tenant’s obligations after an assignment? Many landlords require a personal guaranty from an individual, or a corporate guaranty from a related entity, to ensure payment of the tenant’s obligations under a commercial lease. Guarantees typically provide that they will remain in effect even if the lease is assigned. However, the tenant may be able to negotiate for the termination of the guarantee in the event that the lease is assigned.  In some cases, the landlord may require a substitute guarantor.
• What is the effect of subleasing on the obligations of the tenant and the guarantor? A sublease does not affect the tenant’s obligations to the landlord under the lease, or the guarantor’s obligations to the landlord under the guaranty.

If a business owner is considering entering into a new lease, it is important to carefully review the subleasing and assignment provisions and negotiate any necessary changes before signing the lease. If a tenant desires to sublease or assign an existing lease, it is important to review the applicable requirements and restrictions before taking any action. An experienced real estate attorney can assist the tenant by spotting issues, explaining alternatives, and negotiating with the landlord to help the tenant accomplish its business objectives.

ABOUT THE AUTHOR(S)

Michael D. Klemm

Phone: 952-746-2198, email: [email protected], due diligence in commercial real estate transactions, three alternatives for a buyer to keep a seller’s low mortgage interest rate, webinar replay: hoa fall legal updates 2022, escalation clause tips and traps for buying a home (or an island), webinar replay: hoa fall webinar, on-demand webinar – covid-19 and hoas: how to operate during the pandemic, covid-19 and commercial real estate leases in minnesota, january 1 deadline for preventative maintenance plans, schedules and budgets, crossing the line obtaining building permits for decks in cic’s.

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Assignments & Subleases in Commercial Real Estate Leases

Assignments and Subleases

For many businesses, entering into a lease is an essential and important part of their businesses.  Other than payroll, lease payments are often a business’s largest expense.  However, given the complexity and sheer length of a typical commercial lease, it is a daunting proposition to review and negotiate a lease on your own.  This is the third in a series of articles discussing the major issues to be considered in a typical commercial lease.

This week, we’ll explore assignments and subleases.  While assignments and subleases will have varying terms and conditions on a case-by-case basis, we’ll discuss generally about the issues involved in most assignments and subleases.

An assignment of a lease occurs when an existing tenant (“Assignor”) assigns its rights and obligations under the lease to a new tenant (“Assignee”).  Another form of assignment occurs when a landlord sells the property and a new landlord takes over the lease.  A sublease is often used when the existing tenant (often referred to as “Sublandlord” or “Sublessor”) rents a portion of, or the entire leased premises to another tenant (“Sublessee”), typically for a limited term.  Some leases provide landlords the right to terminate the lease if an existing tenant requests an assignment or lease.

Assignment clauses may also be triggered unwittingly by change of ownership, or equity transfers, in a corporate or LLC tenant.  Leases frequently state that a transfer of a certain percentage of the shares or membership interest in a corporate or LLC tenant shall be construed an assignment.  A tenant should always check its lease for such provisions prior to entering into an equity transfer transaction.

PRACTICAL COUNSEL:  In both assignments and subleases, the rights and obligations of the existing and incoming tenants are delineated in the underlying lease document.  A prospective tenant should take care when reviewing a proposed lease to ensure that they understand the implications of an assignment or sublease, as they may be faced with unfavorable consequences.  Whether a business needs to move out of a leased space due to growth, sell itself, or has space that is not being used, the assignment and sublease clauses will come into play and it is imperative to understand their implications.  The actual assignment of lease or sublease agreements should also be drafted and negotiated carefully to conform to the underlying lease, as well as protect the best interests of the Assignor, Assignee, Sublessor or Sublessee.

Assignment, Subleasing, And Why It's Important To Negotiate The Right To Do Both

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In the market for commercial space? Chances are you’re focusing your efforts on sourcing a property that suits your current business requirements.

However, in today’s ever-changing economy/business climate, companies often need to upsize or downsize at short notice.

As a tenant, where does that leave you when locked into a long-term commercial lease?

Keep it flexible

It’s hard to anticipate whether you’ll be faced with breaking a lease before it happens. So, it’s important to keep your contract flexible by negotiating a subleasing and assignment clause into your agreement. This means you’ll be able to transfer all or part of your space to another tenant down the track if the situation calls for it.

What’s the difference between an assignment and a sublease?

Lease assignments and subleases are often viewed in a similar light. This is because both bank on a third party taking over a commercial lease. But, there are some important differences to consider:

Lease assignment

A lease assignment is when an entire property/space, including the existing tenant’s rights and interest in the commercial lease, is transferred over to a new party.

When it comes to leasing assignments, the new tenant takes on the rights and responsibilities of the assigning tenant. That means the original tenant is not liable anymore if the new tenant breaches the lease.

Lease assignment is best undertaken when:

• The whole lease can be disposed of
• The current lease has favourable terms that would be accepted by another tenant

Major hurdles when it comes to lease assignment:

• Requires upfront capital incentive
• Requires landlord consent

A sublease, on the other hand, is a separate contract between the original tenant and a subtenant. Unlike an assignment, a sublease only turns over part of a property. That means that the original tenant shares the rights and responsibilities to the premises.

A sublease may be preferable for tenants who wish to lease out part of their property to another company for the remainder of the lease term. It may also suit if a tenant needs to rent out the entire property for a period within their fixed-term lease.

In this case, the sublessee treats the sublessor as their landlord. In turn, the sublessor assumes liability on behalf of the sublessee.

Subleasing is best undertaken when:

• You're looking for a partial or temporary cost saving initiative
• Your landlord does not consent to or permit assignment
• Your current lease has. onerous clauses that another tenant wouldn’t agree to

Major hurdles when it comes to subleasing:

• Inherent security risks
• You’ll likely recuperate less than 50%-70% of the rent

You can learn more about some of the benefits of commercial subleasing here and what commercial sublessors should expect from subleasing here .

The importance of a lease assignment and sublease clause

The right to assign or sublet a premises comes down to the language used in the commercial leasing agreement.

If there is no prohibiting or limiting clause, a tenant does not need the landlord’s permission to do so. However, if the contract contains such provisions, the existing tenant needs to get the landlord’s consent. This can prove quite costly for the tenant, who may have to continue to pay rent even if they no longer occupy the premises.

Other options for breaking a commercial lease

The odds usually aren’t stacked in the tenant’s favour when it comes to breaking a commercial lease . However, if you used a tenant representation specialist before signing your contract, you should have received the right advice to protect yourself.

Break clause

Well negotiated leases may have a ‘break clause’, however, most landlords are reluctant to include one of these. A break clause basically lays out the circumstances and the manner in which a tenant can break a commercial lease early.

As with any contract, it’s up to the two parties to negotiate terms. One option may be to allow early termination of a lease if a new tenant with similar financial security takes over. This is similar to an assignment. However, the new tenant would take over the full liability of the remaining lease.

Pay out the commercial lease term

Not a desirable option for most tenants, however, there may be situations where it is the only choice. For example, if you were closing your business before the expiry of your lease term and there was no way to arrange an assignment or sublease, paying out the remainder of your term may be the only course of action.

Most people would consider this a worst-case scenario. This, again, highlights the importance of seeking the help of a tenant representation specialist prior to signing any commercial lease .

Commercial tenants should try to mitigate their risks upfront. Before signing a lease, or even at the heads of agreement stage , we suggest negotiating a clause which requires a landlord to act reasonably in the case of lease assignment or sublease.

Work with a commercial tenant advocate

Negotiating commercial lease terms can be tricky (even daunting at times). This is because most businesses only have to do it once every 5-10 years. Being able to negotiate provisions that would not otherwise be included may also prove challenging because landlords prefer not to limit their options.

Luckily, an experienced tenant representative will guide you through the lease negotiation process so your needs are met every step of the way. So, the next time you face a lease negotiation, let Tenant CS balance the playing field.

Considering breaking your lease? Whether you're exploring options like subleasing, assigning, or surrendering, a detailed property strategy is crucial.

Consulting with a tenant representation specialist is your best move, especially if there's less than a year remaining on your lease. At Tenant CS, we exclusively represent tenants, not landlords. Whether you need assistance with subleasing, exiting your lease, finding and negotiating a new lease, or undertaking a mid-lease rent review, appointing us can potentially save you hundreds of thousands of dollars over your lease term while protecting your interests.

Book a call with us today to discover how we can help you effectively negotiate your next lease or exit your current lease early !

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Assigning vs. Subletting A Commercial Lease

Most commercial lease arrangements allow tenants to rent-out their usable space to a third-party renter.  Although this can be a cost-effective way to maximize commercial space, tenants must be careful: when a tenant decides to rent part or all of their commercial space to a third-party, they are fully responsible for the actions or inactions of the new renter.

When it comes to commercial real estate, a legally-binding agreement is often signed between a landlord and a tenant.  But when the tenant decides to sublet or assign their lease to a third-party, they become the sublessor, while the new third-party renter becomes the sublessee.  Sometimes, the sublessor and sublessee are referred to the primary and secondary tenant respectively.  

In any case, there’s only one legally liable party in the sublessor-sublessee relationship: the sublessor.  In other words, should the sublessee damage the property or fall-behind on payments, compensating the landlord is the primary tenant’s legal obligation.  Nonetheless, choosing a trustworthy and reliable third-party renter often results in a winning situation for both parties. 

Get a Lawyer to Review Your Lease

Can I Rent Out my Commercial Unit?

In most instances, tenants are indeed allowed to rent their commercial space to third-party renters.  However, this is usually up to the discretion of the landlord.  Likewise, subletting must be done in-compliance with local state- and municipal-laws.  

Before making any commitments to potential renters, tenants should ensure they are legally allowed to rent their usable space.  This determination often depends on three factors:

• State- and Municipal-Regulations 
• The Original Commercial Lease Agreement
• Landlord Consent

First—and perhaps foremost—tenants should review their local housing regulations.   Some areas require a landlord’s written-consent before tenants can sublet or assign their lease.  Even when states don’t make landlord-consent a prerequisite, landlords themselves often write provisions into the original lease that ensures permission is granted before subletting.  Thus, you’ll need to revisit the terms and conditions of your original commercial lease agreement.   

The original lease should contain specific language about subletting, however these provisions are oftentimes absent.  If subletting provisions are indeed missing, you’ll need to speak to the landlord directly.  So long as the landlord’s permission is granted and the arrangements are compliant with local laws, tenants are allowed to rent-out their unit to whom every they wish.  Primary tenants that meet these requirements typically have two options: they can 1) sublet their commercial lease, or 2) assign their commercial lease.

Subletting vs. Assigning the Lease

Subletting and assigning are two different ways to structure the relationship between a primary and secondary tenant.  Although the structures are similar, they have important practical differences.  

• Lease-Assignment: the complete transfer of rental rights from a primary tenant to a third-party renter (importantly, the primary tenant is still responsible for the terms of the original lease)
• Subletting:  the partial transfer of rental rights from a primary tenant to a third-party renter, usually for a temporary period of time or for only a portion of the usable space

When a tenant assigns their lease to a third-party renter, they are offering the entirety of their usable space without the intention of returning.  This is unlike a conventional sublease structure, which offers only part of the unit and usually for a temporary period of time.  

Why would a business owner want to assign their commercial lease?  Importantly, a tenant is legally obligated to carry-out the terms of their commercial lease agreement, regardless of the circumstances.  Lease-assignment is practical when original tenants cannot—for whatever reason—uphold their end of the lease.  For example, if a business owner signs a 3-year commercial lease, but goes out of business 2-years into the agreement, they’ll likely seek somebody to complete the final 12-months of the term. 

On the other hand, if a primary tenant is only interested in splitting their usable space or looking for a temporary third-party renter, subletting is the more practical option.  

Who is the Responsible Party?

The commercial lease between the landlord and tenant is a legally-binding document.  Regardless of the tenant’s situation, they are required by-law to carry-out the terms and conditions of the contract.  Even when a lease is assigned to a third-party renter, the primary tenant is still responsible for the rental obligations.  

Perhaps unsurprisingly, the same rules apply to subletting.  When a tenant sublets their usable space, they remain the sole responsible party; should the third-party renter fail to make payments or cause damage to the rental unit, the original tenant is responsible.

Verbal or written agreements between tenants and third-party renters are great for establishing rules and responsibilities, but are more-so personal arrangements and not legally enforceable.  For this reason, it’s imperative that choosing a third-party renter is given ample consideration—regardless if you’re assigning your lease or simply looking to sublet.  It’s not unfair to request bank statements, criminal histories, or credit reports before making a commitment to a secondary tenant.  

In some situations, landlords will in-fact release the original tenant from liability when the lease is assigned to a third-party renter, rendering the new renter responsible for the terms of the original lease.  This is sometimes called “permeant assignment” and is definitely worth exploring when considering lease-assignment.  Usually this stipulation is negotiated between the landlord and tenant; an experienced legal professional may be helpful in these situations.

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What Is a Sublease?

How a sublease works, subleasing and state laws, sublease vs. standard lease.

• Risks (Original Tenant)
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Example of a Sublease

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A sublease is the re-renting of property by an existing tenant to a new third party for a portion of the tenant’s existing lease contract. The sublease agreement may also be called a sublet.

Subleasing may or may not be permitted in the terms of the original lease, and may be subject to additional restrictions by jurisdiction. Even if a sublease is permitted, the original tenant is still liable for the obligations stated in the lease agreement, such as the payment of rent each month.

Key Takeaways

• A sublease is the legal transfer of tenancy from an existing tenant to a third party for a specified period.
• The owner of the real estate must typically approve any subletting arrangement offered by the first tenant, subject to local laws and regulations.
• If a tenant decides to sublease, they remain responsible for rent payments and other contractual obligations.

A lease is a contract between a property owner and a tenant that transfers the owner’s rights to the exclusive possession and use of the real estate property to the tenant for an agreed-upon period. The lease states the length of time the contract is to run and the amount of the tenant’s rent. In legal terms, the tenant’s legal right to possess the property is deemed tenancy. Subleasing occurs when the tenant transfers a part of their legal tenancy to a third party as a new tenant.

Subleasing can be established unless the original lease forbids it. However, in most cases, the owner must be notified and must approve any subletting arrangement created by the tenant. Control over the subletting process could be written into the original lease so that the owner has some control over who uses and/or occupies their property.

A tenant who sublets property must understand that subleasing does not release them from their obligations on the original contracted lease. The tenant is responsible for paying rent and for repairs or damage to the property. That means that if a new subtenant does not pay rent for three months, the original tenant that subleased the property is liable to the landlord for the overdue rent amount and any late fees . In turn, the subtenant is liable to the original tenant for the unpaid rent.

The laws of many states and local municipalities affect a tenant’s right to sublease. These laws may allow an individual to sublease under certain conditions even if their contract with the landlord forbids it. For example, in New York City, a tenant who lives in a building with four or more units has the right to sublease, as long as the landlord consents—or if they deny the sublet on unreasonable grounds, Any lease provision restricting a tenant’s right to sublease is void as a matter of public policy.

In San Francisco, a tenant can replace a roommate with another, even when prohibited by a written lease, as long as the replacement meets the landlord's application screening standards. For example, a landlord might demand a certain credit score where a tenant is concerned. Subleases can apply to both residential and commercial properties.

When subleasing, it's standard for only the original tenant's name to be on the lease—even if the sublessee pays the landlord directly.

A sublease differs from a standard lease primarily in the parties involved and the structure of the agreement. In a standard lease, the lease agreement is directly between the landlord and the tenant, establishing the tenant as the primary occupant responsible for rent and adhering to the lease terms. In a sublease,, there are three parties: the landlord, the original tenant (sublessor), and a new tenant (sublessee). The original tenant remains responsible to the landlord, while the sublessee pays rent to the sublessor and occupies the property under the terms agreed upon in the sublease.

Another key difference lies in the responsibilities and liabilities. In a standard lease, the tenant has direct obligations to the landlord including paying rent, maintaining the property, and complying with lease terms. In a sublease, the original tenant retains these responsibilities to the landlord, even after subletting the property. This can create a layered relationship where the sublessor must ensure that both they and the sublessee fulfill their respective obligations.

Last, the duration and flexibility of the agreements differ. A standard lease typically runs for a fixed term agreed upon by the landlord and tenant, with renewal options specified in the contract. A sublease, however, is often more flexible, potentially aligning with the remainder of the original lease or being arranged for a shorter period. The sublease agreement may also include specific clauses that differ from the original lease depending on the sublessor's needs.

Risks of Subletting for Original Tenant

Subletting can expose the original tenant to several risks, the most significant being financial liability. When a tenant sublets their rental property, they remain legally responsible for the terms of the original lease including the payment of rent. If the subtenant fails to pay rent on time or at all, the original tenant must still cover the shortfall. This financial responsibility extends to any damage caused by the subtenant.

Another risk involves the potential for legal complications. Many leases require the landlord's explicit permission to sublet, and failing to obtain this permission can lead to serious consequences including eviction . Even if subletting is allowed, the original tenant must ensure that the sublease agreement complies with local laws and the terms of the original lease.

The quality of the subtenant is another critical risk factor. If the original tenant does not carefully vet the subtenant, they may end up with someone unreliable or disruptive. A problematic subtenant could cause issues with neighbors, fail to take care of the property, or violate lease terms. Though the financial terms were discussed above, this may also lead to non-financial complications.

Lastly, subletting can complicate the original tenant's ability to return to the rental property. If the subtenant refuses to leave at the end of the sublease, the original tenant may have to engage in costly and time-consuming eviction proceedings. That is because, at the end of the original tenant's lease, the subtenant must leave the premises as the original tenant no longer has a claim on the property through the original lease.

In theory, subleases are limitless. For example, someone who is subleasing a property could in turn lease that property to someone else, and so on. Again, this is all dependent on the conditions on each lease/sublease.

Risks of Subletting for Subtenant

Subletting also poses several risks for the subtenant, starting with the potential lack of legal protection. Since the subtenant does not have a direct contractual relationship with the landlord, their rights are limited compared to those of the original tenant. If the original tenant violates the terms of the primary lease, the subtenant could find themselves unexpectedly evicted, even if they have been fully compliant with their sublease agreement.

Another significant risk involves the possibility of unexpected lease termination. If the original tenant decides to end their lease early or is evicted by the landlord, the subtenant may be forced to leave the property with little notice.

The condition of the rental property is another area of concern for the subtenant. Since the subtenant typically does not conduct the initial walk-through with the landlord, they may not be fully aware of the property’s existing condition or any outstanding maintenance issues . If the landlord refuses to address these problems because the subtenant is not their direct tenant, the subtenant could end up living in substandard conditions with limited recourse.

Because a lease is generally for a predefined term, situations can arise that make it difficult or impossible for the original tenant to complete the lease term. For example, if a tenant is renting an apartment in Chicago with a 12-month lease and, during month four, that tenant receives a job offer in Boston, the tenant may decide to sublease the apartment to another tenant for the remaining eight months. The sublease means that the original tenant can accept the job and move and does not have to pay expensive fees to get out of the lease or pay rent on two apartments.

The landlord also benefits because they receive all 12 rent payments and are saved the expense and effort of finding a replacement tenant. The sublease arrangement also means that the original tenant retains an interest in the apartment. Thus, if the original tenant decides to move back to Chicago, they may be able to renew their lease on their old apartment.

What Is Subletting?

Subletting occurs when a tenant, who has a lease agreement with a landlord, rents out all or part of their rented property to another person, known as the subtenant. The original tenant, or sublessor, remains responsible for the lease with the landlord, while the subtenant occupies the property and pays rent to the sublessor under the terms of a separate sublease agreement.

Do I Need Permission From My Landlord to Sublet?

In many cases, tenants need written permission from their landlord to sublet. Most lease agreements include a clause that outlines the conditions under which subletting is allowed. Check with your landlord if you're not sure.

How Do I Find a Suitable Subtenant?

Many times, people may sublet to people they already know like family or friends. However, you could also take more traditional methods to find a subleasor. Finding a suitable subtenant involves advertising the property, conducting interviews, and thoroughly vetting potential candidates. This process should include background checks, credit checks, and references to ensure the subtenant is reliable, financially stable, and likely to adhere to the sublease terms.

Who Is Responsible for Rent Payment in a Sublease?

In a sublease, the subtenant is responsible for paying rent to the original tenant, who in turn remains responsible for paying rent to the landlord. If the subtenant fails to pay, the original tenant must still fulfill their rent obligations to the landlord.

A sublease is an agreement where an original tenant rents out their leased property to a subtenant, while remaining responsible to the landlord for the terms of the original lease. This arrangement creates a layered relationship, where the subtenant pays rent to the original tenant, but has no direct legal connection with the landlord.

Office of the New York State Attorney General. " Residential Tenants’ Rights Guide ," Pages 26-27.

City and County of San Francisco Rent Board. " Topic No. 151: Subletting and Replacement of Roommates ."

Apartment List. " What is Subletting? Guide to Sublet Apartments ."

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Do you know the difference between a sublease and an assignment?  We can help…

The right of possession may be transferred by the tenant to a third person either by sublease or assignment, provided the landlord gives  consent when required. The substance of the transfer, rather than its form, may well determine the parties’ liabilities to the landlord (see below). Thus, when the tenant retains some right of reentry onto the leased premises, the law deems the transfer a sublease. On the other  hand, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, the transfer is an assignment.

Landlord’s Consent Required

Texas Property Code § 91.005 provides that a tenant may not sublease or rent leased premises during the term of the lease without first obtaining the landlord’s consent. The statute has been held to apply to assignments as well as subleases.  Since the statutory prohibition of assignments or subletting is solely for the landlord’s benefit, only the landlord may bring an action for any wrong done as a result of a  sublease or  assignment made without consent. If the original tenant does assign or sublet the lease without the landlord’s consent, the landlord may refuse to accept rent and treat the lease as forfeited.

The statutory prohibition against assigning a lease without the landlord’s consent may be avoided only by a clear expression of such an intent. For example, a lease provision granting the lessee the right to assign the lease without the landlord’s consent when the tenant is mortgaging its interest will not operate as a relinquishment by the landlord of the right to consent to subsequent assignments.

A landlord traditionally has no duty to consent to the proposed assignment of a lease unless such a duty is expressly stated in the lease. However, the Texas Supreme Court’s 1997 decision to impose a duty to mitigate damages on landlords will limit the right to refuse consent in many cases. A lease to a named person and that person’s heirs has been held to amount to an express authorization of either an assignment or a sublease.

A lease may include a provision that the landlord may not unreasonably withhold consent to a sublease or assignment. In that case, the reasonableness of the landlord’s refusal to consent is determined by reference to the terms and conditions of the original lease. It is unreasonable for the landlord to condition consent on a change in the terms and conditions of the original lease based on what the landlord finds economically advantageous at the time of the attempted assignment or sublease.

The landlord’s acceptance of payments with knowledge of a sublease raises a material fact issue as to whether the landlord has waived the right to object to the sublease.

Liabilities of Parties Upon Sublease or Assignment

Even when the landlord consents to an assignment or sublease, the original tenant is not released from the obligations of the original lease. In an assignment situation, the assignee, as well as the original  tenant, is bound by the covenants of the original lease. For instance, when the landlord does not receive rent from the lessee’s  assignees, and the assignees appear to have abandoned the premises, the landlord has the  right to re-let the property. By so doing, the landlord will not abrogate the lease and may recover from the former lessee or the assignees  the amount of  the agreed rent for the entire contract period, less any sum realized from re-letting

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Triple Net Leases: 10 Opportunities for Commercial Tenants to Negotiate More Favorable Terms (US)

Commercial tenants are likely to encounter the common triple net (NNN) lease; however, without negotiating more favorable terms, they risk accepting an agreement that most often favors landlords. 

Commercial tenants should watch out for these ten clauses common in NNN leases. This articles discusses some opportunities to mitigate risks by negotiating more favorable terms.

      1. Rent . Commercial rent usually comes in two forms in NNN leases. The first is base rent, which is typically quoted on a per-square-foot basis. The tenant is also responsible for additional rent, which typically includes a share of operating expenses, real estate taxes, insurance costs, and utilities.

Key negotiating points:  a)    Additional rent estimate.  Because everything but the base rent will be variable, it is important to get a more fulsome estimate. Consider asking the landlord for an additional rent estimate for up to two or three years into the future. At the very least, request a statement showing what additional rent, operating costs, and taxes have run in the recent past.  b)    Audit rights. Similarly, negotiate for an annual statement showing actual additional rent costs, and for the right to examine the books if something seems irregular.   c)    Cap on controllable operating costs. Every lease will outline the operating costs, some of which the landlord can control, such as wages for building managers and security guards or costs to update amenities. Consider negotiating an annual cap on such costs.  d)    Base rent during extended term. If you have negotiated an option to extend the term of the lease, put in writing a mechanism by which you will have some negotiating leverage for determining the base rent for the extended term.

      2. Security. A landlord will typically ask for some form of security in the event that the tenant stops paying rent, fails to perform maintenance or repairs for which it is responsible, or otherwise defaults under the lease. The three common types of security are a deposit, a personal guaranty, or a secured interest in the tenant's fixtures, furniture, and equipment (FF&E).

Key negotiation points: a)    Security deposit. The landlord may agree to refund some of the tenant's security deposit over time if the tenant is paying rent and abiding by the other terms of the lease. For instance, you may be able to negotiate a return of half of the security deposit after the first year, and the remainder after the second year. b)    Personal guaranty. Tenants are understandably nervous about signing a lease that puts their own personal assets on the line. It may be possible to negotiate a limited guaranty, a corporate (as opposed to personal) guaranty, or an agreement that the guaranty will expire after a certain period of time. c)    Secured interest in the FF&E. This provision is common in restaurant leases. If your lender already has a security interest in your FF&E, you should explain that to the landlord. It would typically be a waste of the landlord's effort to take a secondary interest.

     3. Initial Premises Build-Out . Tenants need the build-out of their space to be suitable for their business, and they need the work to be done on time.

Key negotiation points: a)    Tenant improvement allowance . The landlord may agree to put some money toward the tenant's improvement expenses, since the work will add value to the property. The landlord can also factor the allowance into base rent to recoup the cost over the lease term.  b)    Hiring and payment of contractors. The lease agreement should specify that the landlord is in charge of hiring the architects, engineers, and contractors doing the build-out and making sure those contractors get paid from the tenant improvement allowance. c)    Approval of plans. Ensure you are involved in the design and approval of final plans for the buildout.  d)    Construction schedule and delivery dates. The schedule of work should be spelled out in the lease. However, construction delays are not uncommon. Consider building in terms that include free rent during the delay, an extension of the lease start date, and/or lease termination or a "drop dead" date.

     4. Permitted Use. A typical lease will specify what the space may be used for, and landlords typically specify restrictions.

Key negotiation points:   a)    Define the use. Because a tenant may decide to assign the space at a later date, it is best to define the use as broadly as possible, such as "general office use and ancillary uses."  b)    Exclusive use clause . If it is meaningful, try to include a clause that prohibits the landlord from leasing to competitors in the same building.

     5. Assignment and Sublet. Tenants may over time find that the space they leased no longer serves their purposes, either because they need a larger or smaller space or they need to relocate. But a typical lease will say that assignment or subletting is not allowed without the landlord's consent.

Key negotiation points: a)    Affiliated party transfers. The tenant may be able to negotiate a provision that allows for a transfer if its company is acquired or there has been a merger.   b)    Release from liability. In the event the landlord approves an assignment, it is best for the tenant to have a guarantee that its liability will end. That is more likely if the original tenant can prove to the landlord that the new tenant is credit worthy. c)    Landlord's consent. Try for an agreement that states the landlord's consent will not be unreasonably withheld.  d)    Definition of assignment. The lease should ideally say that a merger, a transfer of ownership of the company, or a sublease of less than half of the space should not be considered an "assignment" per the lease.

      6. Repairs and Maintenance . Generally, the landlord will be responsible for repairs and maintenance of common areas and will pass along associated costs to the tenant as operating expenses, whereas the tenant will be responsible for work involving the leased space.

Key negotiation points: a)    Capital improvements . If large projects will be charged back to you as operating costs, ask that those be amortized over the useful life of the building. b)    Failure to repair. Build in remedies if the landlord fails to make necessary repairs. These might include the right to make the repairs and be refunded for costs, or a rent abatement for space that becomes less usable.

      7. Indemnification/Limitation on Liability. Virtually every form lease will contain language that discusses the tenant's obligation to indemnify, defend, and hold the landlord harmless in the event of a problem. Landlords should have the same obligations.

Key negotiation points: a)    Mutual indemnity. Insert an obligation that the landlord indemnifies, defends, and holds the tenant harmless for events occurring outside the tenant's premises, such as in the parking lot.  b)    Landlord's negligence. Insert a qualifier that states "except in the event of landlord's negligence or willful misconduct" wherever possible.

      8. Subordination. The tenant will want to know that it will not be forced out of the building in the event the landlord defaults on its own loan. This is covered by Subordination Non-Disturbance and Attornment ("SNDA") and estoppel provisions, but it is important to negotiate the scope and form of these documents.

Key negotiation points: a)    Non-disturbance . Confirm that any SNDA clause requires the landlord's lender agree not to disturb the tenancy. b)    Lender approval requirement. Try to avoid any SNDA that requires the tenant to get the lender's approval before common actions like amending the lease or negotiating an extension.

     9. Options. Common options offered to tenants include the option to extend, right of first refusal, and, with longer-term leases, termination.

Key negotiation points:  a)    Notice period. Sometimes landlords offer a very short window, such as five days, for a tenant to exercise an option to expand or right of first refusal. Try to negotiate a more sufficient window to consider the option.  b)    Termination fee. Keep in mind that in the rare instance when a landlord agrees to a termination option, it will often require payment of a fee and potentially a lengthy notice period.

      10. Defaults and Remedies . The tenant will be in default if it fails to pay rent or comply with the other terms and conditions of the lease, and the landlord typically specifies remedies, such as accelerating rent due and forcing the tenant to vacate.

Key negotiation points: a)    Notice and cure periods. Make it clear that "default" requires the landlord to give notice about exactly how the tenant is failing to fulfill the terms of the lease, and an opportunity within a reasonable period of time to fix those failures. b)    Landlord default. Most landlord form leases do not include a provision for landlord default. Negotiate common tenant remedies like rent abatement and self-help in the event the landlord is not keeping with its obligations and covenants under the lease.

Your careful attention to these key clauses in triple-net leases can help ensure that your company's interests and rights are preserved.  Author: Matthew Loven is a real estate partner at Maslon LLP.    

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