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Lease Novation Agreement
"I need a Lease Novation Agreement for transferring a retail space lease from my company to a new tenant as part of our business restructuring, with the transfer to take effect from March 1, 2025; the property is a shopping center unit in Dublin and we need to ensure the existing guarantees are properly released."
1. Parties: Identifies the Original Landlord, Original Tenant (Outgoing Tenant), and New Tenant (Incoming Tenant)
2. Background: Recitals explaining the existing lease arrangement and the parties' intention to novate
3. Definitions and Interpretation: Defines key terms used in the agreement and sets out interpretation rules
4. Novation: Core clause effecting the novation of the lease from the Outgoing Tenant to the Incoming Tenant
5. Release of Outgoing Tenant: Formal release of the Outgoing Tenant from future obligations under the lease
6. Assumption of Obligations: New Tenant's assumption of all lease obligations from the effective date
7. Landlord's Consent: Explicit consent of the Landlord to the novation and confirmation of lease continuation
8. Effective Date: Specifies when the novation takes effect
9. Rent and Payments: Addresses handling of rent, service charges, and other payments during the transition
10. Representations and Warranties: Standard warranties from all parties regarding their capacity and authority
11. Governing Law and Jurisdiction: Confirms Irish law governs the agreement and Irish courts have jurisdiction
12. Execution: Signature blocks for all parties
1. Security Deposit: Required if there is an existing security deposit to be transferred or replaced
2. Guarantor Provisions: Required if the original lease has guarantors or new guarantors are being added
3. VAT Elections: Required if there are VAT options or elections that need to be addressed
4. Costs: Optional section detailing who bears the costs of the novation process
5. Insurance: Required if specific insurance arrangements need to be addressed during transition
6. Entire Agreement: Optional boilerplate clause confirming this document represents the entire agreement
7. Counterparts: Optional section allowing execution in counterparts
1. Schedule 1 - The Lease: Copy or details of the original lease and any subsequent amendments
2. Schedule 2 - The Property: Detailed description of the leased property and any relevant plans
3. Schedule 3 - Outstanding Matters: List of any outstanding rent, service charges, or other payments
4. Schedule 4 - Condition Report: Optional schedule documenting the condition of the property at novation
5. Schedule 5 - Existing Guarantees: Copies of any existing guarantees if applicable
6. Appendix 1 - Land Registry Requirements: Forms and information required for Land Registry registration
7. Appendix 2 - Consent Requirements: Any third-party consent documents required for the novation
Authors
Real Estate
Commercial Property
Retail
Manufacturing
Industrial
Office Space
Hospitality
Healthcare
Education
Technology
Financial Services
Logistics
Warehousing
Legal
Real Estate
Facilities Management
Finance
Operations
Risk & Compliance
Property Administration
Corporate Services
Business Development
Asset Management
Legal Counsel
Property Manager
Real Estate Director
Facilities Manager
Commercial Director
Chief Financial Officer
Operations Director
Company Secretary
Risk Manager
Compliance Officer
Property Lawyer
Asset Manager
Lease Administrator
Corporate Real Estate Manager
Business Development Manager
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Lease Novation Agreement
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Letter Of Novation
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