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Lease Option Assignment Template for Canada

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Key Requirements PROMPT example:

Lease Option Assignment

"I need a Lease Option Assignment document for transferring my commercial property option rights to a corporate buyer, with the original lease option expiring in March 2025, and the landlord has already provided verbal consent."

Document background
The Lease Option Assignment is a crucial document used in Canadian real estate transactions when a party holding a lease option wishes to transfer their rights to another party. This document is commonly used in both commercial and residential property contexts, particularly when the original option holder cannot or chooses not to exercise their option rights. The agreement must comply with provincial property laws and regulations, including any registration requirements and landlord consent provisions. It typically includes detailed information about the original lease option, the terms of the assignment, consideration paid, and any conditions that must be met. The document serves to protect all parties' interests and ensure a clear chain of title for the option rights.
Suggested Sections

1. Parties: Identifies all parties to the assignment: the Assignor (current option holder), the Assignee, and confirmation of the Landlord's consent if required

2. Background: Outlines the existence of the original lease option agreement, its key terms, and the intention to assign

3. Definitions: Defines key terms used throughout the agreement including 'Original Lease Option', 'Property', 'Option Period', and 'Option Price'

4. Assignment: Core clause transferring all rights, title and interest in the lease option from Assignor to Assignee

5. Consideration: Details the payment or other consideration for the assignment

6. Assignor's Representations and Warranties: Assignor's confirmations regarding their right to assign, good standing of the option, and other key assurances

7. Assignee's Covenants: Assignee's promises to comply with original option terms and conditions

8. Landlord's Consent: Acknowledgment and confirmation of the landlord's consent to the assignment

9. Completion: Process and requirements for completing the assignment transaction

10. Notices: How and where formal notices under the agreement should be sent

11. Governing Law: Specifies that Canadian law governs the agreement and which province's jurisdiction applies

Optional Sections

1. Security Deposit Assignment: Required if there is an existing security deposit to be transferred from Assignor to Assignee

2. Real Estate Commission: Include if any real estate agents are involved and commission payments need to be addressed

3. Due Diligence Period: Optional section allowing Assignee time to review documents and conduct investigations

4. Environmental Matters: Include for commercial properties where environmental issues may be relevant

5. Assignment of Related Rights: Include if there are additional rights (e.g., parking, storage) that need to be specifically assigned

6. Confidentiality: Include if parties wish to keep the terms of the assignment private

7. Further Assurances: Optional clause requiring parties to take additional actions if needed to perfect the assignment

Suggested Schedules

1. Schedule A - Original Lease Option Agreement: Copy of the complete original lease option agreement being assigned

2. Schedule B - Property Description: Legal description and details of the property subject to the option

3. Schedule C - Option Terms Summary: Summary of key option terms including price, exercise dates, and conditions

4. Schedule D - Outstanding Obligations: List of any outstanding obligations under the original option agreement

5. Schedule E - Consent Form: Formal landlord consent document if required

6. Appendix 1 - Payment Schedule: Details of any installment payments for the assignment consideration

7. Appendix 2 - Due Diligence Documents: List of documents provided for review during due diligence

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































Clauses






























Relevant Industries

Real Estate

Commercial Property

Residential Property

Property Development

Property Management

Legal Services

Property Investment

Retail

Office Space

Industrial Property

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Risk Management

Operations

Asset Management

Acquisitions

Contract Administration

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Commercial Lease Administrator

Property Development Manager

Asset Manager

Legal Counsel

Contract Administrator

Real Estate Investment Manager

Compliance Officer

Title Officer

Real Estate Broker

Property Acquisition Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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