Assignment and Assumption of Lease Agreement
(Commercial Lease) (IL)

Summary

This template assignment and assumption of lease agreement transfers a tenant's interest under a commercial lease of Illinois real property to a third party. This template includes practical guidance, drafting notes, alternate clauses, and optional clauses. This template assumes that the tenant is assigning all of its rights and obligations under a commercial lease for the remainder of the lease term. If the tenant/assignor desires to transfer less than all of its interest under the lease, a sublease as opposed to an assignment should be used. For a template, see Sublease Agreement. Prior to assigning its lease, assignor should review the lease to determine if landlord consent is required. This template includes an optional consent of landlord and a release of tenant by landlord from further liability under the lease. Pursuant to 35 Ill. Comp. Stat. Ann. 200/31-10, Illinois imposes transfer tax on the transfer of a ground lease with a term of 30 years or more when all options to renew or extend are included. See 35 Ill. Comp. Stat. Ann. 200/31-5. See Real Property Transfer Taxes (IL) for further information on real property transfer taxes in Illinois. For further information on assignment and assumption of lease agreements, see Lease Assignments.