Transfer Documents
Assignment of Lease and other Contracts in an Asset Sale
Often times because of visibility and walk-in trade, the business location is a major component of the business and represents substantial value in the transaction. In order for the buyer to obtain rights under the lease, at closing, the seller will have to formally sign an Assignment of Lease which includes the landlord's consent and certification concerning the status of rent payments, security deposit and confirmation that the lease is still in full force and effect.
There will likely be other contracts with customers, suppliers, employees and service providers that will also need to be transferred to the buyer as part of the sale. Again, there will have to be a formal assignment for each contract and if assignable, the other party's consent to the assignment. If not assignable, we will need to seek an accommodation from the other party waiving the prohibition against assignment for the buyer.
