Lease Assumption Agreement Law and Legal Definition
A Lease Assumption Agreement is a legal contract effecting an agreement between two parties, whereby the Assignee agrees to assume the responsibilities, interests, rights, and obligations of the Tenant with respect to the already existing Lease Agreement between the Landlord and Tenant. The difference between a sublease and lease assumption is that in a lease assumption, the current tenant is giving up the premises for the rest of the lease term. In a sublease, the tenant leases the premises for a few months during the existing lease term and then takes back apartment for the rest of the original lease term.
Once executed with the Landlord’s consent, the Landlord may no longer seek to recover any money unless the new tenant defaults. In this Agreement, the parties must also make explicit what those rights and obligations consist of, such as an obligation to indemnify, or to make certain payments under a lease or mortgage agreement.