Document background
The Lease Assumption Agreement is a crucial document used in Malaysian commercial and residential property transactions when an existing tenant wishes to transfer their lease obligations to a new tenant. This agreement becomes necessary when a tenant needs to exit a lease early but has found another party willing to take over the remaining lease term. The document ensures compliance with Malaysian property laws, including the National Land Code 1965 and relevant state-level regulations. It typically includes details about the original lease, the premises, rent obligations, security deposits, and any existing modifications or special conditions. The Lease Assumption Agreement must be properly executed and stamped in accordance with the Stamp Act 1949 to be legally enforceable in Malaysia. This document is particularly important in protecting the interests of all parties involved - the landlord, the original tenant, and the new tenant - by clearly defining their rights, obligations, and any conditions attached to the lease transfer.
