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Commercial Real Estate

Assignment and Assumption of Leases

Drafting assignment and assumption of leases agreements manually requires reviewing multiple lease documents, coordinating details from purchase agreements, and ensuring proper indemnification language—a process that typically takes 2-3 hours per transaction. Attorneys must carefully track security deposits, rents, and landlord obligations while avoiding errors that could create liability exposure. The repetitive nature of these documents makes manual drafting inefficient and prone to inconsistencies.

Automation ROI

Time savings at a glance

Manual workflow3.5 hoursAverage time your team spends by hand
With CaseMark8 minutesDelivery time with CaseMark automation
EfficiencySave 18.8x time with CaseMark

The Problem

Drafting Assignment and Assumption of Leases agreements for commercial real estate transactions is time-intensive and detail-critical. Attorneys must extract information from multiple documents, ensure consistency with purchase agreements, properly allocate pre- and post-closing obligations, and comply with state-specific requirements—a process that typically takes 3-4 hours per transaction.

The CaseMark Solution

CaseMark automates the entire drafting process by intelligently extracting transaction details from your purchase agreement and lease schedules, then generating a comprehensive, attorney-ready Assignment and Assumption of Leases agreement. The platform ensures proper indemnification provisions, security deposit transfers, and compliance with your jurisdiction's requirements in minutes instead of hours.

Key benefits

How CaseMark automations transform your workflow

Generate complete assignment and assumption agreements in 8 minutes vs. 2.5 hours manually

Automatically populate party information, property details, and lease schedules from source documents

Ensure proper indemnification language protects both assignor and assignee from pre- and post-closing liabilities

Maintain consistency across multiple lease assignments in portfolio transactions

Reduce risk of errors in security deposit transfers and rent allocation

What you'll receive

Document Header and Title
Parties Identification
Recitals (Purchase Agreement, Leases, Purpose)
Assignment Clause
Assumption Clause
Assignor Indemnification
Assignee Indemnification
Purchase Agreement Controls
Governing Law
Signature Blocks
Exhibit A (Schedule of Leases)

Document requirements

Required

  • Purchase and Sale Agreement
  • Lease Schedule or Rent Roll

Optional

  • Individual Tenant Leases
  • Tenant Estoppel Certificates
  • Property Legal Description
  • Closing Statement

Perfect for

Commercial real estate attorneys handling property acquisitions
Real estate transactional lawyers preparing closing documents
Corporate counsel managing commercial property purchases
Real estate paralegals supporting transaction closings
Commercial property investors and developers
Law firm associates in real estate practice groups

Also useful for

This workflow is applicable across multiple practice areas and use cases

Asset Purchase90% relevant

Asset purchase agreements routinely include commercial real estate with tenant leases that require formal assignment and assumption documentation at closing.

The workflow directly supports asset purchase transactions by generating the necessary lease assignment documents referenced in purchase agreements, ensuring proper transfer of landlord rights and obligations.

M&A transactions involving companies with commercial real estate holdings require assignment and assumption of leases as part of asset transfers during acquisitions.

Portfolio acquisitions and asset purchases frequently include commercial properties with existing leases that must be properly assigned to the acquiring entity with appropriate indemnification provisions.

Corporate General72% relevant

Corporate restructurings, spin-offs, and entity reorganizations often involve transferring commercial property leases between related entities or successor corporations.

Corporate counsel managing internal reorganizations need to document lease transfers between entities while maintaining proper indemnification and ensuring continuity of lease obligations.

Bankruptcy asset sales and Section 363 sales require assignment and assumption of valuable commercial leases as part of the debtor's asset disposition.

Bankruptcy practitioners need to prepare lease assignment documents when selling commercial properties as part of estate liquidation or reorganization plans, ensuring proper assumption by purchasers.

Frequently asked questions

Q

What documents do I need to generate an Assignment and Assumption of Leases?

A

At minimum, you need the purchase and sale agreement and a lease schedule or rent roll. CaseMark will extract the essential transaction details, party information, closing date, and lease specifics from these documents. For enhanced accuracy, you can also upload individual tenant leases, estoppel certificates, and the property legal description, which the system will analyze to ensure completeness and identify any assignment restrictions.

Q

How does CaseMark handle security deposit transfers and rent prorations?

A

CaseMark automatically generates provisions addressing security deposit transfers based on the amounts listed in your lease schedule or rent roll. The system creates language requiring the assignee to assume liability for deposit returns and releasing the assignor from further obligations. Rent proration provisions are included that allocate pre-closing rents to the assignor and post-closing rents to the assignee, with references to your closing statement for specific calculations.

Q

Will the assignment agreement comply with my state's landlord-tenant laws?

A

Yes. CaseMark identifies the property location from your documents and applies the appropriate governing law provisions. The system incorporates state-specific requirements for security deposits, landlord assignment obligations, and tenant notice requirements where applicable. However, as with all AI-generated documents, attorney review is recommended to ensure compliance with the latest statutory requirements and case law in your jurisdiction.

Q

Can CaseMark identify leases that restrict assignment or require tenant consent?

A

When you upload individual tenant leases, CaseMark analyzes them for assignment restrictions, consent requirements, and other provisions that may be triggered by ownership changes such as co-tenancy clauses or exclusive use rights. The system will flag these issues in the output and can suggest appropriate carve-outs or special provisions. If only a lease schedule is provided, the system will include standard language but recommend review of individual leases for restrictions.

Q

How does the assignment agreement relate to other closing documents?

A

CaseMark ensures the Assignment and Assumption of Leases aligns with your purchase agreement by extracting and incorporating consistent terms, dates, and party information. The system includes provisions stating that the assignment is subject to the purchase agreement and that any conflicts are resolved in favor of the purchase agreement. The effective date is synchronized with your closing date to maintain consistency across all transaction documents including the deed, bill of sale, and closing statement.