Transfer of Lease Agreement
Simplify the process with our do-it-yourself document generator. In a few minutes you’ll have a custom Transfer of Lease document that you can use to release outgoing tenants and welcome new ones.
Better yet, you can reuse and recycle this document for all future incoming and outgoing tenants.
How does it work?
Our intuitive tool will guide you through the process step-by-step from start to finish. It’s quick, easy and simple to understand – just how legal documents ought to be.
The expert interview wizard will help you answer a few questions and prepare your document in the background. You’ll have your custom Transfer of Lease in 15 minutes or less.
When you’re done, print or download a PDF versions for you to review, customise or sign.
What is a Transfer of Lease?
A Transfer of Lease is a contract between a landlord or property manager and a new tenant. It transfers the rights, benefits, and obligations from the outgoing tenants to the incoming tenants.
Because a Transfer of Lease transfers the same rights and obligations from one party to another, it is considered a type of Deed of Novation.
Keeping track of multiple incoming and outgoing parties or guarantors to replace or release can be tricky and time-consuming. We simplify and streamline the process by helping you build a customised template that you can use again and again as tenants come and go.
When should I use the Transfer of Lease?
The Transfer of Lease should be used if you would like to document the lease of any non-retail commercial property.
What topics does the Transfer of lease cover?
- Definitions and interpretation
- Conditions Precedent
- Substitution of parties
- Indemnity from Incoming Party and Incoming Guarantor
- Indemnity from Leaving Party and Leaving Guarantor
- Mutual warranties
- Payments and costs
- Important notices
- Governing law and jurisdiction
What are the main decisions I need to make in creating a Transfer of Lease ?
- Do you want to include guarantors in this agreement? You have the choice to add 1 or 2 guarantors. Each will guarantee the lessee’s performance of the lessee’s obligations under the lease and indemnify the lessor against any breach by the lessee. Each guarantee is given personally and continues until all the lessee’s obligations are completely met. Multiple guarantors will give their guarantees jointly and severally.
- Do you want to include an indemnity clause? You have the choice to include an indemnity, given by the lessee in favour of the lessor, which will cover losses incurred by the lessor as a result of any:
- breach of this lease by the lessee;
- negligence or other tortious conduct of the lessee; and/or
- third party claims that arise during the term of this lease, including claims that arise generally in respect of the premises.
- Will you specify who will pay the costs of preparing and administering this lease? This includes any costs relating to the stamp duty payable in connection with the negotiation, preparation, and execution of the deed.
- Will you charge interest on overdue amounts? You can make the lessee liable for interest on any default payment of rent, outgoings, costs or other liability under this lease including monies payable on demand.
What other names does Transfer of Lease go by?
- Deed of Novation of Lease
- Lease Novation
- Lease Novation Contract
- Novation of Tenancy Agreement
- Lease Assignment Agreement
- Lease Transfer Agreement
- Lease Transfer Deed
- Lease Assignment Deed
Frequently Asked Questions
Continuing, Leaving and Incoming parties. You can name up to 5 of each party.
Each individual named will hold their rights and owe their obligations jointly and severally.
You’ll need this document when;
- You want to transfer a lease for a property.
- You want to ensure that your property is used in a manner that was intended or agreed upon once the lease is transferred.
- You want the incoming party to be aware of the conditions of the property’s use and the consequences of non-compliance with those conditions.
You will need the following information:
- Parties: Particulars of the Continuing, Leaving and Incoming Parties and Guarantors, including names, addresses, ACN for companies, and ABN where applicable.
- Term: The commencement date, duration of the initial term and any options to renew.
- Rent & outgoings: The annual rent, rent reviews and outgoings payable by the lessee.
- Conditionality + completion deliverables/actions: You can customise this agreement to only take effect once certain conditions/circumstances/actions are met/taken.
- Guarantors: Particulars of any guarantors to be added, including names, addresses, ACN for companies, and ABN where applicable.
Yes, you can. The parties may only want this lease to take effect upon the satisfaction of one or more of the following conditions in relation to the leased premises:
- the lessor completing their purchase of the premises;
- the lessor obtaining approval for a change of use; and
- the lesse being granted license to operate their business at the premises.
A guarantee will provide added protection particularly when the lessee does not have sufficiently strong credentials. Each guarantor provides the lessor with an alternative party to recover debts owed to you.
Ideally, a guarantor will have sufficient personal assets to be worth pursuing a debt-recovery action against when required.
If the lessee defaults, the guarantor becomes personally liable regardless of whether the lessee is capable of repaying.
The guarantor’s liabilities are not relinquished until the lease is terminated and all of the lessee’s obligations are fully satisfied. A director guarantor’s obligations are not relinquished by his or her resignation.
As an alternative, parties may wish to negotiate a larger security amount in place of a guarantee.
There are several signing options available. How you sign largely depends on where the parties are located and if they will attend signing together. You can print on paper and sign, or use electronic signature tools such as Docusign or Hellosign.
If you need any assistance please contact us directly, we would be happy to assist.
If you have any questions or are uncertain about any aspect of the document please do not sign it or use it, please contact us directly and we would be happy to assist.
Absolutely! Get in touch with us and we can provide a fixed-fee price to review it.
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Not quite right? Looking for something else?
What other documents might I need?
- Commercial Lease (Non-Retail) – You may need this document if you’re trying to document a commercial lease for non-retail purposes.
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