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

Summary

This assignment and assumption of lease agreement template transfers a tenant’s interest under a commercial lease of New Jersey 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 N.J. Stat. § 46:15-5, New Jersey imposes a real property transfer tax on transfers by written instrument of freehold real property interests (including leases for 99 years or more and proprietary leases of cooperative units). See Real Property Transfer Taxes (NJ) for further information on real property transfer taxes in New Jersey. For further information on assignment and assumption of lease agreements, see Assignment and Assumption Agreements. For further information on landlord’s consent to a lease assignment, see Lease Assignments.