Document background
The Assignment Of Leases And Rents is a crucial security document in Hong Kong real estate financing transactions, typically used when a property owner seeks financing against a revenue-generating property. This document serves to create security over both the rental income stream and the underlying lease contracts, providing lenders with direct access to these income sources in case of default. It must comply with Hong Kong's Conveyancing and Property Ordinance and Land Registration Ordinance requirements, and is commonly used alongside mortgages and other security instruments in commercial real estate financing. The document becomes particularly important for properties with significant rental income, such as office buildings, shopping centers, or residential complexes, and must be properly stamped and registered to ensure enforceability.
