The transfer of a lease for business premises is quite common. Unlike the transfer of other leases, like equipment, it's a particularly complex process.
But many landlords prefer to have separate agreements for separate tenants. This because of possible liabilities, or an accounting policy of separating tenants for auditing purposes.
This letter contains references to legal obligations on yourself and the lessee.
The actual transfer of lease is an executable document.
This letter is an agreement in principle. Seek legal advice regarding the requirements of the transfer.
Acceptance of transfer means the lessee assumes responsibility for the terms of the lease.
You, in turn, are obliged to comply with the terms of the lease to the new owners.
The letter of acceptance of transfer of lease for commercial premises isn't just a formality. It represents your acknowledgement and acceptance of the occupancy of the site, and is an undertaking to transfer the lease to the new business owners.
This document may be part of a legal action, if the transfer of lease doesn't proceed.
The example below is of a transfer of lease of a shop in a shopping mall. The owner wants some new terms in the lease, and has attached a copy of a draft transfer of lease with the new terms as additional conditions.
Re: Transfer of lease of premises (Shop 1A, Rosetown Shopping Plaza)
I refer to your letter of (insert date) requesting the transfer of lease of the above premises.
Please be advised that this transfer of lease is acceptable.
However, several amendments to the terms of the lease will be required.
The previous lease was an older lease, not the standardized lease now in use for Rosetown Shopping Plaza shops. To bring the lease up to the current standard, the new conditions are necessary.
A draft copy of the transfer of lease, with the new terms of the lease on a separate sheet (Appendix C), is enclosed.
Please advise in writing your acceptance of the additional terms of the lease.
On receipt of your acceptance, a copy of the amended transfer of lease containing the new terms will be forwarded to you by our solicitors, Redd and Blue, for signature.
If you have any queries regarding the terms of the lease, please contact me directly on the above phone number or email address.