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Simple English definitions for legal terms
assignment of lease
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A quick definition of assignment of lease:
An assignment of lease is when someone transfers their lease agreement to another person. This means that the new person takes over the lease and becomes responsible for paying rent and following the terms of the lease. An assignment of property is when someone divides up their property in a fair way, usually during a divorce. An assignment of realty is just another way of saying assignment of lease. An assignment-of-rents clause is a part of a mortgage agreement that allows the lender to collect rent from the property if the borrower doesn't pay their mortgage.
A more thorough explanation:
An assignment of lease is when a tenant transfers their lease agreement to another person. This means that the new person takes over the lease and becomes responsible for paying rent and following the terms of the lease.
For example, if John is renting an apartment and he wants to move out before his lease is up, he can find someone else to take over his lease. This new person would sign an assignment of lease agreement with the landlord and become the new tenant.
Another example of an assignment of lease is when a business owner sells their business but the lease for the business space still has time left on it. The new owner of the business would need to take over the lease by signing an assignment of lease agreement with the landlord.
The assignment-of-rents clause is a provision in a mortgage agreement that allows the lender to collect rent from the mortgaged property if the borrower defaults on their mortgage payments. This means that if the borrower can't make their mortgage payments, the lender can step in and collect rent from any tenants in the property to help cover the mortgage payments.