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ARTICLE · 21 MARCH 2018

Key considerations when a landlord assigns a lease

DibbsBarker
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A tenant may need to consider protecting its position in case its landlord at some stage seeks to assign its interest.

AustraliaReal Estate and Construction
Bill Burrough
Bill Burrough
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Services: Real Estate & Construction
Industry Focus: Real Estate & Construction

What you need to know

  • In most circumstances, a tenant will not be given an opportunity to object to a landlord assigning its interest in a lease, because most landlords will not want to limit their ability to do so.
  • Whether or not a new landlord will be bound by specific obligations of the original landlord will depend on whether those obligations 'run with the land'.
  • Some tenants may seek certain safeguards to protect their position in the event of a future assignment of the lease by their landlord, particularly where they have the benefit of incentives or rights that have been negotiated outside of the lease itself.

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