Commercial Leases: Key differences between an Assignment of Lease and a Sublease

assignment of lease nz

Commercial Law

Oct 10 2022.

Similar to the trend seen overseas, working remotely has become a more common and standard practice, which has impacted the way some businesses now operate in New Zealand. Accordingly, when tenants under commercial leases are reviewing their leasing requirements they may decide that they no longer require the same area of premises. This may lead to a tenant transferring their rights under a commercial lease to another party by way of an assignment or sublease. In order to determine which arrangement is best for your business and circumstances, it is important to understand the differences between the two.

A sublease is where the tenant (commonly referred to as the sublandlord) transfers part or all of the tenancy under the sublandlord’s existing lease to a third party. It is important to note that the sublandlord retains an interest in the premises and there is no direct contract between the headlandlord and the subtenant. As a result, the sublandlord is still responsible for all lease obligations but the subtenant pays a contribution for the part of the premises that they sublease from the sublandlord. The subtenant is responsible to the sublandlord for the lease obligations under the sublease. This type of arrangement is particularly common when the sublandlord no longer requires all of the leased premises and wishes to recover some of the costs under the headlease. It is vital to ensure that the timeframe for the sublease arrangement does not extend beyond the term under the headlease. If you are considering subleasing part of your premises, the first step would be reviewing your headlease terms to see if there are any restrictions on the area or any parts within the premises that can or cannot be sublet.

An assignment of a lease involves the new tenant (commonly referred to as the assignee) agreeing to take on all of the existing tenant’s (commonly referred to as the assignor) lease obligations. The transfer of the interest is for the remaining duration of the lease. While the assignment of lease terminates the assignor’s right to possession, the assignor’s liability under the lease commonly continues to the expiry of the current lease term unless provisions are included within the Deed of Assignment of Lease or negotiated with the landlord to provide otherwise. This liability also extends to any guarantors provided. However, the standard ADLS Deed of Assignment of Lease includes an indemnity from the assignee in favour of the assignor against any claims the landlord may raise against the assignor or the assignor’s guarantors.

Once you have established which option is best suited for your business’s circumstances you need to ensure that the headlease allows for an assignment or a sublease to be granted and approach your landlord for their consent to the assignment or sublease.

If you want to assign or sublease your commercial lease or have queries about your lease, please contact us to find out which option is best for you.

assignment of lease nz

John Mackay

assignment of lease nz

Emily Merrill

You may also like ....

assignment of lease nz

Understanding your obligations under the Consumer Guarantees Act 1993

assignment of lease nz

Construction Contracts (Retention Money) Amendment Act 2023 – ‘The Highlights’

assignment of lease nz

All is fair in Consumer Contracts and Trade – Changes to the Fair Trading Act 1986

Start typing and press enter to search.

Isaac_tankard_logo

  • 6 Things to Consider With an Assignment of Lease
  • Market Updates

assignment of lease nz

Since COVID-19 reached New Zealand, the number of assignments we have transacted has significantly increased. Landlord’s and Tenants have been approaching us seeking understanding and solutions regarding their leases and the obligations.

What is an assignment .

An Assignment is the transfer of an existing Lease; including all terms and conditions which have already been agreed between a Landlord and Tenant. This most commonly occurs when a business is sold or needs to relocate to smaller/larger premises. In the current economic environment we are working with an increasing number of Tenants looking to close their business, relocate, expand or downsize.

Before you start considering an assignment we recommend you speak with your current Landlord to advise of your current situation and communicate you plans. As always, we recommend you seek legal advice.

6 Things’ to consider with an Assignment

  • Review your Lease – make sure you have a copy of your current Lease Agreement to understand the renewal dates, lease expiry and your obligations.
  • Landlord approval – For an Assignment to proceed it is conditional upon the Landlord’s approval (10 working days), this includes if a change in business use is required for the incoming Tenant, which why we recommend having advanced communication with the Landlord about your situation.
  • Cost – There are several costs which need to be considered; firstly your own Legal fees but you will also be liable for the Landlords legal fees, Agency fees if you are engaging a commercial real estate agent to help you find a replacement Tenant and lastly your cost to relocate.
  • Reinstatement – If your business has made changes to property which might include painting, fit-out, damaged walls etc then these may need to be repaired, removed, or reinstated. It is important to have a clear understanding between all parties involved what is expected and that it is documented.
  • Ongoing Liability – It is important to be aware that even though you may have assigned the Lease, you still remain liable from the Assignment date the end of lease, we would recommend you seek legal advise as to your options to limit your liability under the Lease.
  • New Lease – As an alternative to assigning your lease, you could suggest to the Landlord that they enter into a new lease with the new Tenant. Of course the terms of this new lease would have to be favourable to the Landlord for them to agree.

assignment of lease nz

assignment of lease nz

  • Business Set Up
  • Consumer Law
  • Data & Privacy
  • Employment Law
  • Getting Finance
  • Intellectual Property
  • Technology and Software
  • Professional Services
  • Construction & Trades
  • Fitness, Health and Wellness
  • Online Business
  • Food & Hospitality
  • Meet the Team
  • Quick Q&As
  • Get Started
  • Member Login

Assigning A Lease – How A Deed Of Assignment Works

assignment of lease nz

When you’re entering or leaving a business premise as a tenant in New Zealand, it’s crucial to check if you need to transfer a lease. In other words, if the ownership of the business is changing, you need to make this official with your tenant. 

This is known as ‘assigning a lease’ or ‘transferring a lease’. It occurs when you’re selling your business and the buyer agrees to be bound by the existing lease, or you’ve decided to move premises and have found another business willing to take over your current lease.

Essentially, when you assign your lease, you’ll be handing over the rights and obligations of that lease to another party . It’s important to ensure you’re not left liable for any part of the old lease! 

This is also known as a Deed of Assignment , which we’ve written about in more detail here . 

The Process Of Transferring A Lease

Transferring a lease in New Zealand doesn’t have to be a complicated process. Let’s simplify it. 

1. Review The Existing Lease

Firstly, you’ll need to check that there aren’t any conditions in the lease that would prevent it from being transferred. Review the terms of your lease carefully, and consider consulting a lawyer to assist with this step! 

2. Landlord’s Consent

Once you’ve confirmed that the lease can be assigned, you’ll need the landlord’s written consent and understand any requirements for the transfer. Each landlord may have different stipulations, so clear communication is key. 

3. Discuss The Assignee

Next, discuss with your landlord who will be taking over the lease, known as the incoming tenant. Gather their name, contact details, and any relevant documents needed for the transfer, such as evidence of their financial standing or business experience. 

Following this, the landlord confirms their consent to the transfer, and the incoming tenant agrees to it. This is formalised in a Deed of Consent to Assignment . 

The assignee will then agree to take on the rights under the existing lease from a specified date until the lease term concludes. 

All parties should review the terms of the Agreement to ensure they are satisfied with their obligations and the rights or interests they will hold in the lease. 

I’m The Outgoing Tenant – What Else Should I Do?

With the landlord’s consent in place, you can proceed with creating a Deed of Transfer of Lease.

This document will officially release you from any responsibilities or liabilities under the lease. However, until this is formalised, continue to fulfil your lease obligations. 

Retail Leases

If you’re transferring a retail lease, the steps you need to take in New Zealand may differ. It’s advisable to review the Commercial Tenancies Act 1991 , which governs retail leases. 

Considerations may include:

  • Under a retail lease, providing evidence of the incoming tenant’s financial reliability can help in obtaining the landlord’s consent.
  • If the incoming tenant lacks financial credibility, the landlord is not obliged to consent to the transfer.

Understanding your rights and obligations under the type of lease you hold is essential. More information about transferring leases can be found here . 

If you need a lease drafted or reviewed, we’re here to assist! Contact our friendly team on 0800 002 184 or [email protected] for a free, no-obligation consultation about your specific situation and the legal documents that suit your needs.

We're an online legal provider operating in New Zealand, Australia and the UK. Our team services New Zealand companies and works remotely from all around the world.

We'll get back to you within 1 business day.

  • Full Name *
  • Email Address *
  • What are you looking for help with? *
  • Phone This field is for validation purposes and should be left unchanged.

Related Services

  • Deed of Assignment/Transfer of Lease
  • Deed of Assignment of Contract
  • Deed of Assignment/Transfer of Lease Review
  • IP Assignment Deed
  • Deed of Accession

assignment of lease nz

  • Email This field is for validation purposes and should be left unchanged.

assignment of lease nz

Download our Top 3 Legal Mistakes guide.

assignment of lease nz

Book in a free consultation with us to discuss your legal needs.

You're visiting Sprintlaw . Would you like to switch to Sprintlaw ?

  • Business Purchase Package
  • Business Sale Agreement
  • Business Sale Agreement (Review Only) Package
  • Business Sale Lawyer
  • Business Sale Package
  • Completion Checklist
  • Convertible Note
  • Franchise Grant Package
  • Franchise Sale Agreement
  • Legal Due Diligence Package
  • Online Business Sale Lawyer
  • Sell Your Business Online
  • Share and Unit Sale
  • Share Sale Agreement & Constitution Review
  • Share Sale Package
  • Share Subscription Letter
  • Software Reseller Agreement
  • Unsolicited Consumer Agreement
  • Vendor Finance Agreement
  • Adopt A Constitution
  • B-Corp Package
  • Canadian New Zealand Subsidiary Set Up
  • Charity Set Up
  • Co-operative Set Up
  • Company Constitution
  • Conflict of Interest Policy
  • Corporate Lawyer Consult
  • CSF Company Constitution
  • Customer Contracts
  • Deed of Access & Indemnity
  • Deed of Guarantee and Indemnity
  • Deed of Waiver, Release and Indemnity
  • Director’s Service Agreement
  • Directors’ Resolution Template
  • Domain Name Licence
  • Dual Company Structure Package
  • Foreign Branch Set Up
  • Founders Term Sheet
  • Intercompany IP Licence
  • Legal Health Check
  • Medicinal Cannabis Businesses Lawyers
  • NFP / Charity Constitution
  • Option Deed
  • Partnership Agreement
  • Partnership Dissolution Agreement
  • Register a Company
  • Register As A Charity
  • Rent Abatement Agreement
  • Set Up a B-Corp
  • Set up a Company Limited by Guarantee
  • Set Up A Special Purpose Company
  • Set up an Incorporated Society
  • Share Vesting Agreement
  • Shareholders Agreement
  • Shareholders Agreement (Vesting)
  • Shareholders Agreement Review
  • Social Enterprise Constitution
  • Unitholders Agreement
  • Agreement for Lease Review
  • Commercial Lease Lawyers
  • Commercial Lease Review
  • Commercial Sublease Agreement
  • Commercial Sublease Review
  • Commercial Tenancy Agreement
  • Drafting a Commercial Lease
  • Drafting a Retail Lease
  • Drafting a Retail Sublease
  • Extension of Lease
  • Extension Of Lease Review
  • Heads of Agreement/Letter of Offer Review
  • Lease HOA Review
  • Lease Review (Amendment Advice)
  • Lease Surrender Agreement
  • Online Commercial Lease Lawyers
  • Property Licence Agreement
  • Retail Lease Review
  • Retail Sublease Review
  • Construction Lawyer
  • Contract Review (Construction/New Zealand Standards)
  • Dry Hire Agreement
  • Freight Forwarding Agreement
  • Joint Venture Agreement (Construction/Property)
  • Labour Hire Agreement
  • Online Construction Lawyer
  • Removalist T&Cs
  • Supply and Install Agreement
  • Wet Hire Agreement
  • Commercial Lawyer Consult
  • Consumer Guarantees Act Consultation
  • Consumer Lawyers
  • Contract Review
  • New Zealand Consumer Law Consultation
  • Online Consumer Lawyers
  • Warranties Against Defects Policy
  • Accountant Terms and Engagement Package
  • Advisory Agreement
  • Affiliate Marketing Agreement
  • Agistment Agreement
  • Airbnb Management Agreement
  • Apprenticeship Agreement
  • Asset Sale Agreement | Sprintlaw
  • Authority to Act Form
  • Beta Participation Agreement
  • Brand Ambassador Agreement
  • Bundled Products Terms & Conditions
  • Business Terms & Conditions
  • Buyer’s Agent Agreement
  • Car Rental Agreement
  • Child Care Agreement
  • Clause Drafting
  • Cleaner Service Agreement
  • Co-founder Separation Agreement
  • Co-founder Separation Consult
  • Coaching Agreement
  • Collaboration Agreement
  • Commission Agreement
  • Community Guidelines
  • Competitions T&Cs
  • Conjunction Agreement
  • Consignment Agreement
  • Consultancy Agreement
  • Contract Amendment
  • Contract Drafting
  • Contract Lawyers
  • Contract Review & Redraft
  • Copyright Licence Agreement
  • Credit Application and Terms of Trade
  • Credit Application Terms
  • Data Processing Agreement
  • Debt Collection Agreement
  • Deed of Novation
  • Deed of Settlement
  • Deed of Termination
  • Deed of Variation
  • Delivery Service Agreement
  • Distribution Agreement
  • Dropshipping Agreement
  • Drug Testing Consent Form
  • Electrical Service Agreement
  • Employee Commission Agreement
  • Endorsement Agreement
  • Engagement Letter
  • Event Planning Agreement
  • Facility Management Agreement
  • Forward Contract
  • Franchise Disclosure Document Update
  • Freelancer Agreement
  • General Security Agreement
  • Goods & Services Agreement
  • Goods & Services Agreement (Online and Offline)
  • Graphic Design T&Cs
  • Gym Terms & Conditions
  • Hardware Supply Agreement
  • Heads of Agreement
  • Health Service Provider Agreement
  • Hire Agreement
  • Hire Agreement (Online)
  • Hire and Rental Agreements
  • Hire Purchase Agreement
  • Import/Export Agreement
  • Individual Flexibility Agreement
  • Influencer Agreement
  • Interior Design T&Cs
  • International Contract Review
  • Internship Agreement
  • IT Services Agreement
  • Joint Venture Agreement
  • Joint Venture Agreement (Incorporated)
  • Joint Venture Agreement (Unincorporated)
  • Joint Venture Dissolution Agreement
  • Loan Agreement
  • Loan Agreement (Secured)
  • Loan Agreement (Unsecured)
  • Loan Agreement Review
  • Location Release Form
  • Managed Services Agreement
  • Manufacturing Agreement
  • Marketing Service Agreement
  • Master Services Agreement
  • Mechanical Workshop Terms & Conditions
  • Medical Release Consent Form
  • Memorandum of Understanding
  • Model Release Form
  • Mutual Non-Disclosure Agreement
  • Negotiation Support
  • Non-Compete Agreement
  • Non-Disclosure Agreement
  • Online Coaching Agreement
  • Online Contract Lawyers
  • Online Course Agreement
  • Parental Consent Form
  • Participant Consent Form
  • Personal Training Agreement
  • Phantom Share Agreement
  • Photographer T&Cs Package
  • Photography/Video Consent Form
  • Power Purchase Agreement
  • Producer Agreement
  • Profit Share Agreement
  • Publishing Agreement
  • Real Estate Agent Agreement
  • Recruitment & Labour Hire Agreement
  • Recruitment T&Cs Package
  • Referral Agreement
  • Research & Development Agreement
  • Reseller Agreement
  • Retreat T&Cs Package
  • Revenue Share Agreement
  • Sale of Goods T&Cs
  • Sales Agency Agreement
  • Salon Rent-a-Chair Agreement
  • Secondment Agreement
  • Service Agreement
  • Service Agreement (Property Stylist)
  • Service Agreement (Trades)
  • Service Level Agreement
  • Share Buyback Agreement
  • Share Farming Agreement
  • Signing Service
  • Software Licence Agreement
  • Software Licence Agreement and EULA
  • Solar Installation & Power Purchase Agreement
  • Solar Installation Services Agreement
  • Sponsorship Agreement
  • Standard Form of Agreement (Telecommunications)
  • Statement of Work Review
  • Sub-Contractor Agreement
  • Sub-Contractor Agreement and Head Contract Review
  • Subscription Terms & Conditions (Offline)
  • Supply Agreement
  • Sweat Equity Agreement
  • Talent Management Agreement
  • Talent Release Form
  • Teaming Agreement
  • Telehealth Service Agreement
  • Terms of Sale
  • Terms of Trade
  • Tour Terms and Conditions Package
  • Trail Book Sale Agreement
  • Training Agreement
  • Travel Agency Agreement
  • Venue Hire Agreement
  • Website Development Agreement
  • Wet & Dry Hire Agreement
  • Whistleblower Policy
  • White Label Agreement
  • Wholesale Agreement
  • Work Experience Agreement
  • Entertainment Lawyer
  • Online Entertainment Lawyer
  • Acceptable Use Policy
  • Access Request Form
  • Credit Reporting Policy
  • Data & Privacy Lawyers
  • Data Breach Notification
  • Data Breach Response Plan
  • Email Disclaimer
  • GDPR Package
  • Information Security Policy
  • Online Data & Privacy Lawyers
  • Privacy Advice
  • Privacy Collection Notice
  • Privacy Complaint Handling Procedure
  • Privacy Consent Form
  • Privacy Incident Response Plan
  • Privacy Policy
  • Privacy Policy (Credit Provider)
  • Privacy Policy (GDPR)
  • Privacy Policy (Health Service Provider)
  • Privacy Policy (Sensitive Information)
  • Lead Generation Agreement
  • Transfer A Trade Mark
  • App Terms and Conditions
  • Cookie Policy
  • eCommerce (Alcohol) Terms and Conditions
  • eCommerce Lawyers
  • eCommerce Terms and Conditions
  • Marketplace Terms and Conditions
  • Online Directory Terms and Conditions
  • Online eCommerce Lawyers
  • Online Goods & Services T&Cs
  • Online Service Terms and Conditions
  • Online Shop (Shopify) Terms and Conditions
  • Online Shop Terms and Conditions
  • Online Subscription Terms & Conditions
  • Platform Terms and Conditions (Premium)
  • Shipping Policy
  • Website Terms & Conditions
  • Website Terms & Conditions (Other)
  • Website Terms of Use
  • Casual Employment Contract
  • Contractor Agreement
  • Contractor Agreement Consult
  • Custom Workplace Policy
  • Employee or Contractor Advice | Sprintlaw
  • Employee Privacy Handbook
  • Employee Termination Documents Suite | Sprintlaw
  • Employment Contract (Executive Level)
  • Employment Contract Packages
  • Employment Contracts (FT/PT)
  • Employment Lawyers
  • ESOP Review
  • Generative AI Use Policy
  • Parental Leave Policy
  • Performance Management Process and Employee Termination Advice
  • Personnel Security Policy
  • Phantom Share Option Plan
  • Phantom Share Scheme
  • Redundancy Advice
  • Redundancy Document Suite
  • Restraint of Trade Advice
  • Specialist Online Employment Lawyers
  • Staff Handbook
  • Volunteer Agreement
  • Workplace Harrassment and Discrimination Claims (Employer)
  • Accidental Franchising Consult
  • Franchise Agreement
  • Franchise Agreement – Quick Review
  • Franchise Agreement Review
  • Franchise Lawyers
  • Franchisor Package
  • Online Franchise Lawyers
  • Capital Raising Consult
  • Capital Raising for Startups
  • Information Memorandum Disclaimer
  • Register a Security Interest
  • SAFE Cap Table Package
  • Share Buyback Package
  • Share Sale Agreement
  • Share Subscription Agreement
  • Term Sheet (Capital Raise)
  • Copyright Consult
  • Copyright Disclaimer
  • Evidence of Use
  • Intellectual Property Lawyer Consult
  • Intellectual Property Lawyers
  • International Trade Mark Application
  • International Trade Mark Consultation
  • IP Health Check
  • Online Intellectual Property Lawyers
  • Register your Trade Mark
  • Registered Design Application
  • Trade Mark (Additional Class)
  • Trade Mark (Additional Related Trade Mark)
  • Trade Mark Adverse Report Consult
  • Trade Mark Initial Consultation
  • Trade Mark Opposition Counter-Statement
  • Trade Mark Renewal
  • Trade Mark Search Report
  • Auspice Agreement
  • Charity Charter
  • Charity Lawyer
  • Not-for-profit Consultation
  • Online Charity Lawyer
  • Alcohol Licence
  • Legal Advice Package
  • Operating a Competition Advice
  • Regulatory Compliance Lawyer
  • API Agreement
  • End User Licence Agreement
  • SaaS T&Cs
  • Saas Terms and Conditions with EULA
  • Software Development Agreement
  • Technology Lawyers
  • Terms of Use
  • FAST Agreement
  • Startup Lawyers
  • Accountants
  • Accountants – All Articles
  • Accountants – All Services
  • Agribusiness
  • Beauty Industry
  • Childcare – All Articles
  • Childcare – All Services
  • Clothing Business
  • Construction
  • Consulting and Professional Services
  • Creative – All Articles
  • Creative Industries
  • Creative Industries – All Services
  • Education and Training
  • Education and Training – All Articles
  • Education and Training – All Services
  • Event Planning & Management
  • Fitness and Wellness Industry
  • Fitness and Wellness Industry – All Articles
  • Fitness and Wellness Industry – All Services
  • Furniture & Homeware
  • Hairdressing Business
  • Healthcare and Medical Practices
  • Healthcare and Medical Practices – All Articles
  • Healthcare and Medical Practices – All Services
  • Hospitality and Tourism
  • Hospitality and Tourism – All Articles
  • Hospitality and Tourism – All Services
  • Instagram Business
  • Legal Services
  • Logistics and Transportation
  • Logistics and Transportation – All Articles
  • Logistics and Transportation – All Services
  • Marketing Business
  • Party Business
  • Restaurant and Cafés
  • Restaurant and Cafés – All Articles
  • Restaurant and Cafés – All Services
  • SaaS Business
  • Sports & Recreation
  • Technology and Software Development
  • Technology and Software Development – All Articles
  • Technology and Software Development – All Services
  • Travel Agencies and Tour Operators
  • Travel Agencies and Tour Operators – All Articles
  • Travel Agencies and Tour Operators – All Services
  • Getting Started With Your Legals
  • Business Ideas and Plans
  • Business Structure
  • Business Partners
  • Industry Regulations
  • Building a Team: Employees and Contractors
  • Online Business and Privacy
  • Business Sales
  • Commercial Leases
  • Creative & Entertainment
  • Data & Privacy
  • Digital Marketing & Advertising
  • Franchising
  • Not-for-profits & Charities
  • Regulatory Compliance
  • Software & IT
  • Uncategorized

Commercial Leasing – What you need to know

Person signing a document

Rachel Lindsay

With the exciting news that Invercargill’s inner city redevelopment is going ahead, it’s likely we will see an increase in commercial leasing activity in the city.

If you are considering leasing your commercial property or looking to lease one as a tenant, then understanding the difference between some of the documents you’re likely to come across is important.

Heads of Lease

A Heads of Lease (sometimes also referred to as a Heads of Agreement) is an informal document setting out the key terms of the lease that have been agreed between the parties before the necessary legal documentation is completed. An agent may sometimes assist in preparing a Heads of Lease, which can then be used by your lawyer to prepare the formal lease. Generally speaking, neither party is bound until all parties have signed the formal lease documents, however it is best to be explicit about this in the Heads of Lease.

Agreement to Lease

An Agreement to Lease is often used when the premises which are to be leased have not been constructed. In this case, the landlord is agreeing to grant, and the tenant agreeing to take, a lease, once the premises are completed. An Agreement to Lease will usually deal with matters such as approval of the tenant’s plans for the fit out of the premises, access to the premises for the purposes of completing the fit out and the time within which the Landlord is required to have the premises completed. An Agreement to Lease will also include a term requiring the parties to sign a formal Deed of Lease, usually once the premises are completed and any conditions have been fulfilled. Such a term will typically also provide that the terms of the Deed of Lease will be binding as if it had been signed, even if the parties don’t end up signing it. Therefore, the parties should seek legal advice prior to entering into an Agreement to Lease.

Deed of Lease

A Deed of Lease is the formal legal agreement between the landlord and tenant. As a lease creates an interest in land, it must, with few exceptions, be in writing and comply with certain formalities. A form often used by lawyers to record a lease is the Auckland District Law Society Deed of Lease. While the ADLS Deed of Lease is relatively even-handed as between landlords and tenants, the form should be amended as necessary to meet the needs of the parties and to suit their specific arrangement – one size never fits all.

Deed of Assignment of Lease

A Deed of Assignment of Lease is used when a tenant wishes to assign its interest in an existing lease to another party, for example, a purchaser of its business. Generally the landlord’s consent to the assignment will be required. Upon assignment, the incoming tenant will become liable to perform the existing tenant’s obligations under the lease. However, it’s important to be aware that the existing tenant, and any guarantors, will generally remain liable under the lease until the expiry of the term. This means that if the purchaser of your business fails to pay the rent under the lease, your previous Landlord can still seek to recover it from you.

As you can see, entering into a lease can be a significant long term financial commitment for both parties. Therefore, it’s best to consult your lawyer to ensure you have the most appropriate documentation in place. They will be able to discuss with you the risks involved in the proposed lease and be able to negotiate any key changes that are required for your circumstances – Rachel Lindsay.

For more information contact our resident specialist  Rachel Lindsay , partner at AWS Legal 

Articles and Updates

Photo of a young couple holding up a house shaped key ring with a key on it

From Dreaming to Buying: Your Fast-Track Guide with our Quick Checklist

assignment of lease nz

What a Night! New Zealand Dairy Industry Awards 2024

assignment of lease nz

Congratulations to Tori Brown & Kyle Galbraith on their recent Bar Admission

People with a contract

Reducing your Risk when Purchasing a Property

International Women’s day

Donald in professional clothing sat at desk

Summer Clerk Spotlight – Donald McIntosh

assignment of lease nz

The Incorporated Societies Act 2022: How the New Act will impact Incorporated Societies?

assignment of lease nz

Last Friday Went to the Dogs!  K9 Medical Detection NZ to be specific!

assignment of lease nz

Congratulations to AWS Legal’s Newest Solicitors: Harrison Croy, Alice Hoogvliet & Nick Wilson

Quick links.

  • Terms of Engagement
  • Invercargill – Waihōpai
  • Queenstown – Tāhuna
  • Alexandra – Areketanara
  • Gore – Māruawai

Tēnā koe. The REA office will be closed for staff training on Friday 7 June 2024 . For enquiries, please email [email protected] , and our team will respond as soon as possible from Monday 10 June.

Commercial real estate guidance

Commercial real estate, including letting and leasing, are specialised fields, and it’s important to understand the pitfalls and challenges.

Topics covered on this page

Your fiduciary duty versus duty of care.

Appraisal and agency agreements

Commercial leasing agreements

Legal descriptions that are included in the certificate of title, disclosure requirements under the unit titles act 2010, what you need to know about unit title developments, holding and releasing deposits.

Things to consider with district plans

Lease documents you need to be aware of

Property alterations and business use changes, commercial related documents, understanding the importance of contract confidentiality, issues that arise between contract and settlement.

Your fiduciary duty to your client is the highest duty in law – it’s a relationship of trust and good faith.

Your duty of care to a customer (purchaser) is less than the fiduciary obligation you owe to a client (vendor) because you are not contractually bound to the customer as you are with a client. However, you must not act in any way that is likely to cause the customer harm or fail to mention something that the customer should be made aware of.

Rule 6.4 of the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012 (Code of Conduct) [PDF, 208 KB] provides a benchmark that applies to both clients and customers:

A licensee must not mislead a customer or client, nor provide false information, nor withhold information that should by law or in fairness be provided to a customer or client.

Your client may be a vendor or lessor, and they will be paying the commission on the sale or lease along with any agreed marketing and advertising expenses. In other situations, your client will be a prospective purchaser or lessee, and they would pay your commission fee and any other agreed expenses.

Remember, you can’t represent two clients (vendor/lessor and purchaser/lessee) in the same transaction. This is covered by rule 9.14 of the Code of Conduct:

A licensee must not act in a capacity that would attract more than 1 commission in the same transaction.

Appraisals and agency agreements

It’s a legal requirement to have an agency agreement and appraisal in place when conducting a commercial real estate transaction – this applies to all transactions, including commercial leases.

Your agreement needs to contain a written appraisal price of the business, which is required under rule 10.2 of the Code of Conduct.

A business appraisal is needed when:

  • the business is to be sold
  • ownership interest is gifted or transferred as part of an estate
  • business partners are changing
  • there is a legal separation of business owners
  • it is required for business financing purposes.

It can be difficult to find comparable data for commercial listings. However, you can use semi-comparable data when it is available and explain this to the vendor. There will often be other businesses with similar characteristics that can be used for comparison. The businesses may not be identical, but they may have comparable products, overheads and turnover.

Take the time to support your appraisal with whatever comparable information is available. Clients rely on your professional expertise and need to know what evidence supports the market value you suggest for the property. A good business appraisal must be clear, easy to understand and defensible.

Read more about agency agreements

Read more about appraisals

Licensees must have a written agreement with a client before they can market or promote any available commercial lease. Licensees working in commercial leasing must do anti-money laundering (AML) due diligence on their client before presenting an offer of lease to the client. This is different to other real estate sectors where AML due diligence must be completed before an agency agreement is signed.

Read more about anti-money laundering regulations (external link)

We recognise that the commercial leasing market operates at scale and pace. Standard agency agreements and processes may not be practical and may be burdensome, particularly for landlords and property managers. This is particularly true where there’s an existing and ongoing relationship with a client for multiple properties. In these scenarios, there may be an agreement between an agency and a client that spans multiple properties across an agreed timeframe that allows licensees to undertake real estate agency work. This agreement should explain how any new leases and properties will be included in the agreement by the client and the agency, being mindful of the requirements in the Code of Conduct. 

Before entering into an agreement with a client, you must:

  • agree a current market appraisal or rental rate with the client
  • explain how your commission is calculated and paid and include actual amounts of commission payable or refer to how your standard commission is calculated — be clear about whether the figures are inclusive or exclusive of GST.
  • recommend that the client seeks legal advice before entering into the agreement.

Licensees who don’t have a written and signed agreement with a client are not entitled to claim commission for any real estate work they have done under section 126 of the Act.

You must obtain and familiarise yourself with the certificate of title for any property you market, whether for sale or lease. The certificate of title is likely to contain critical information, such as details of any long-term leases.

In commercial and industrial real estate, you must consider:

  • the legal description of the property – whether it’s freehold or subject to some other form of tenure, such as leasehold, unit title or company share
  • any covenants or other restrictions that might affect the use of the property
  • the physical description of the property itself - this includes knowledge of the legal boundaries and any encroachments by the subject property onto a neighbouring property or vice versa
  • representations made about the quality of the property, including its potential uses, building quality, building services, licensing issues, lease conditions, insurance, and health and safety requirements.

It’s common for smaller commercial and industrial properties to be a unit title rather than a freehold title. This is easily identified on the certificate of title, which will be listed as ’Computer Unit Title Register’ at the top and show either ‘Stratum in Freehold’ or ‘Stratum in Leasehold’ in the ‘Estate’ section.

The main units, which are used for business or residential purposes, are known as principal units. Other units designed for use with the principal unit, such as outbuildings, car parks and exclusive use areas within the grounds, are usually known as accessory (or auxiliary) units. These can’t be sold separately to anyone who isn’t the owner of a principal unit.

When marketing a unit title property for sale, there are provisions within the Unit Titles Act 2010 that require disclosure statements to be provided. These are required at various stages throughout the transaction process and licensees should be familiar with these provisions.

Learn more about the Unit Titles Act 2010

The operational rules for commercial property developments under the unit title scheme are likely to include a reference to specific issues such as:

  • the types of business the premises may be used for (office, manufacturing, retail, accommodation) – such uses would need to be compliant with the district plan
  • any restrictions or limitations on signage or other exterior advertising, including size, materials, durability, placement, and so on – such rules must be consistent with any local bylaws that apply
  • whether the premises are permitted to be subject to lease agreements, and any terms and conditions that may apply
  • details of security measures (such as access cards and alarm codes) and any restrictions regarding who these can be made available to
  • details of any restrictions on the hours for deliveries
  • details of restrictions on the storage, use or disposal of hazardous materials on site.

Mixed-use developments

Mixed-used developments usually involve a commercial element (such as offices, manufacturing or retail) along with accommodation.

Body corporate rules may apply, and it’s likely there will be rules relating to the residential component. These may involve such things as:

  • the general behaviour of unit owners, occupiers and guests, for example, noise restrictions after a certain time
  • any restrictions on the external appearance of the building(s), such as window coverings, and the permitted uses for balconies
  • any restrictions on keeping pets
  • pest control use of the common areas for recreation purposes.

One significant issue with unit title properties is when the agency can release the deposit paid by the purchaser.

Section 123 of the Real Estate Agents Act (external link)  requires all licensees who receive any money in respect of a transaction to hold that money for 10 working days from the day they receive it. This applies for all transactions, including the grant, renegotiation or renewal of a commercial lease. It also applies if the sale falls over between the time the deposit is paid, and when the 10 working days is up.

The only exceptions to holding money for this are if:

  • there is a court order requiring the agent to pay the money before the 10 working days expires
  • there is an authority signed by all the parties to the transaction requiring the agent to pay the money before the 10 working days expires.

If a notice of requisition (where someone lays a claim on the property) or notice of objection to the title is made while you are holding the deposit, you must not pay the deposit to anyone except in accordance with a court order or an authority signed by all the parties to the transaction.

The agreement being unconditional is just one element that must be satisfied before you can release the deposit. The requisition period must also have expired without a claim being made.

If the property is a unit title, the Unit Titles Act disclosure requirements must also have been met.

Releasing the deposit early

If the parties are seeking the early release of a deposit for a transaction in accordance with section 123(2), you should recommend that the parties seek legal advice. They should be aware of the implications of releasing the deposit early if something goes wrong later in the transaction.

Things to consider with District Plans

Change of use buildings.

A change of use is where the compliance requirements relating to the new use of a building would be in addition to what is required under the Building Act 2004 (external link) .

There are many examples of changes of use in the commercial and industrial sector. For example, if a building that was designed as a warehouse is converted for use as a restaurant, this is a change of use.

The areas of major concern in cases of change of use are:

  • the structural performance of the building
  • ensuring means of escape from fire and the fire rating performance
  • protection of other property
  • access and facilities for people with disabilities, if these are not already provided
  • earthquake strengthening.

Building warrant of fitness (BWOF) and services

Building services include, but are not limited to:

  • elevators, escalators and moving walkways
  • heating, ventilation and air conditioning
  • automatic door systems
  • wet or dry riser mains for use by fire services
  • automatic fire sprinkler systems
  • emergency warning systems for fire or other dangers
  • emergency lighting systems and signage
  • building maintenance units that provide access to the interior or exterior walls of buildings.

These components are listed on a compliance schedule for the building. Each component on the compliance schedule is subject to an annual building warrant of fitness (BWOF), which must be completed by the building owner or their authorised agent. BWOFs must be publicly displayed on the site.

Before listing a property, you should check that the BWOF is current and obtain a copy for your files. If the BWOF is not current, you must alert any prospective purchasers and recommend that they take appropriate advice before proceeding.

Local authority licensing issues

Many types of business are subject to local authority (or other) licensing issues. These can relate to:

  • premises for food preparation, handling and service
  • personal services, for example, hair salons, tattoo parlours and massage therapists
  • recreation services, for example, public swimming pools, saunas and camping grounds.

You must check whether the premises have the necessary licences and the duration of any existing licences. It’s also important to check the conditions under which such licences may be transferred to a purchaser and any restrictions that may apply.

What you need to know about seismic factors

Owners of commercial and industrial property and multi-storey multi-unit buildings throughout the country are often required by lenders and insurers to demonstrate that the building is not earthquake-prone.

Read more about earth-quake-prone buildings at building.govt.nz (external link)

Buildings constructed before 1976 that are for commercial use, publicly accessible, multi-storey, or multi-unit residential complexes, may be assessed under the relevant council’s earthquake-prone buildings policy. You will need to check with the relevant local council for these requirements.

Buildings that are identified as earthquake-prone, will be recorded on the local council’s record of that property and will be included in any land information memorandum (LIM) or project information memorandum (PIM).

Owners who have a detailed engineering evaluation (DEE) or detailed seismic assessment (DSA) should be able to provide this documentation for you, and prospective purchasers and tenants to review. The DEE or DSA should include the percentage of the new building standard (NBS) that the building meets and a basic understanding of any specific issues. You should recommend that your prospective purchasers and tenants seek expert or legal advice to understand these documents.

More about the Building Act 2004

A lease is a contract in which the owner of the property (the lessor) permits another person or organisation (the lessee) to use and occupy the property for a period in exchange for payment of a specified sum of money. You’ll need to distinguish between ground leases, which relate to the lease of the land only, and premises leases, which relate to the lease of land and buildings.

It’s best practice to get a copy of the lease before marketing the business so that you can familiarise yourself with the details.

Lease documents are typically prepared by solicitors acting on behalf of their owner clients. When dealing with a property that is subject to a lease, it’s important to read the lease document carefully and seek specialist advice for any part of the lease that you don’t fully understand. Don’t rely on information from the vendor as this may not be fully accurate.

Some large organisations have their own specific lease documents. Others use:

  • Property Council of New Zealand lease forms (external link)
  • The Law Association lease forms (external link)

There are several versions of each lease, and you need to be able to distinguish between these.

Lease assignments

There are assignments of leases where the original lessee (the assignor) transfers their interest to another party (the assignee), who becomes the lessee (with the approval of the lessor).

The assignor is still responsible to the lessor for any default by the assignee for the duration of the original lease. Subleasing, however, is different because the sublessee engages in a contract with the original (head) lessee rather than the lessor.

It’s important to note that, when a lease is assigned, in most cases, the assignor (or vendor in the case of a business sale) will still have obligations to the landlord (lessor) for the lease even following the assignment to the purchaser. This applies until the end of the lease term.

If the lease is to be assigned, the deed of assignment of the lease will need to be completed within the timeframe specified on the front page of the agreement. You’ll need to explain to both the vendor and purchaser who is responsible for the costs involved in this process.

If you’re aware of any issues or problems relating to the existing lease, you must disclose the issues to the purchaser. You must also discuss whether they require any alterations to the lease to suit their proposed use of the premises.

Often the purchaser or assignee will tell you that they wish to make minor or major alterations to the premises. Usually, they will specify that the changes will be at their cost. If the purchaser or assignee wishes to change the business use, the landlord needs to approve this.

It’s imperative that you insert a clause in the agreement that allows for the purchaser or assignee to obtain the landlord’s approval of such alterations. The clause must state the precise nature of the work. If the changes are structural, they will require a building consent from the local territorial authority. You may want to seek expert or legal advice to determine the appropriate clause to insert. 

Alterations to the premises may have implications for any current licences or business use rights. The sale and purchase agreement needs to reflect protection for the business purchaser in this regard.

Business use

You must ensure that:

  • the business is currently trading in accordance with the business use specified in the lease
  • the purchaser or assignee intends to continue to trade in a similar manner and not contravene the permitted use
  • the purchaser or assignee is aware that adding new products or services or changing a menu may be contrary to the lease provision.

Marketing commercial and industrial properties are likely to involve a range of documents.

These may include but are not limited to:

  • lease documents – there must be one for each tenancy if the property has more than one tenant
  • seismic evaluations
  • building warrant of fitness (BWOF)

In some situations, such as a mortgagee sale or when the client is the receiver or liquidator, it is likely that there will be certain documents and information that parties cannot provide to the agency. 

When the sale contract is signed, the purchaser may wish to use a nominee to protect their identity from the client. If this is the case, you must make the client aware of this before encouraging them to sign an agreement.

If your client asks you whether the purchaser plans to pass their rights to a specific party that your client clearly does not want to become the owner of the property, you must answer truthfully.

There are occasions when new information will become available between the dates of contract and settlement.

For example, the vendor may receive notification of a designation being placed on the property for road widening or the installation of electricity or telecommunications equipment or a maintenance inspection may reveal a significant hazard or indicate a need for expensive repairs.

If the property is subject to a body corporate, a change in the rules that would affect the purchaser’s use of the property, perception of its value, significant increase in levies or insurance premiums must be disclosed. Similarly, if during this period there is new information about a current or future tenant that might affect the purchaser’s perception of the quality of the property, this must also be disclosed.

Any information of this nature or information that would otherwise affect the purchaser, must be disclosed immediately to the purchaser.

Mortgagee sales

Rural real estate guidance

Was this information helpful?

You must enable JavaScript to submit this form

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

assignment of lease nz

Home » Commercial Property Law » As a commercial landlord, what say do I have over who my tenant sells their business to?

As a commercial landlord, what say do I have over who my tenant sells their business to?

23 May, 2012 | Wade Hansen

If you are the landlord of a commercial property, and your tenant is selling their business, you may want to know what say you have as to who the new tenant might be.  The transfer to a third party of the tenant’s rights to use the property is known as assignment.

The rights of landlords and tenants mainly depend on two things:

  • the terms of any written lease signed by the parties and;
  • part 4 of the Property Law Act 2007 (“PLA 2007”).

If you do not have a written lease, pursuant to section 210 of the PLA 2007, the tenant has no right to assign.  Further, if you do not have a written lease, either party may terminate the tenancy at will, giving only 20 working days notice. This is why we strongly recommend you have a lawyer draft a written lease to give you security.  A written lease locks the tenant in for an agreed period of time and gives the tenants the security of tenure for the term or period of the lease.

If you have an existing written lease, then a close examination of the wording surrounding any rights to assign the lease should be undertaken.  A lot of leases are based on the standard form Auckland District Law Society (“ADLS”) lease, which includes as a standard term the tenant’s right to assign the lease, subject to obtaining the landlord’s written consent to the assignment. However, the landlord shall give that consent if the following conditions are fulfilled:

a) the tenant proves to the satisfaction of the landlord that the assignee is respectable, responsible and has the financial resources to meet the commitments under the lease;

In order to satisfy this condition, it is reasonably standard practice that the landlord requests the following types of information from the proposed assignee:

  • previous business experience relating to the business they will be conducting from the premises;
  • details of their previous landlord(s) for the purpose of reference checks;

a list of assets and liabilities of the proposed assignee and/or any proposed guarantor of the assignee (see d) below).

b) all rent and other moneys owing under the lease have been paid and there is not any subsisting breach of any of the tenant’s covenants. An example of a subsisting breach may be if the tenant has made alterations to the premises without obtaining the landlord’s consent.  Then the landlord can require that the tenant reinstate the premises to the original state before the assignment will be consented to.

c) a deed of covenant in customary form is executed and delivered to the landlord; There is a standard ADLS deed of assignment (deed of assignment and deed of covenant can be used interchangeably) that is often used, which ties the assignee into the terms of the existing lease and more importantly, records that the current tenants is still liable under the deed of lease, should the assignee default.

d) if the assignment is to a company, then a guarantee from the principal shareholders of the company be executed and delivered to the landlord;

A guarantee is necessary if the proposed assignee is a company because if the company goes into receivership or is put into liquidation, then you want to secure another avenue whereby you can recoup any outstanding rental payments. Be mindful to ask for a list of assets of the guarantors in their personal names. If all of the guarantor’s assets are held in a family trust, you would be better to obtain a guarantee from the trust itself. Again, in the standard ADLS deed of assignment, the guarantors are a party to the document and if they sign this, they do not need to sign a separate guarantee document.

e) the tenant pays the landlords reasonable legal costs in respect of the proposed assignee.

The tenant is required to pay the landlord’s reasonable legal costs irrespective of whether or not the assignment proceeds.If your lease follows the standard form ADLS lease, you do have some say as to who takes on the assignment of the lease, but clause 45.1(k) states that you cannot unreasonably withhold your consent. If a reasonable landlord would be satisfied with the information the proposed assignee has provided, then you must grant consent.

How much control you have over who the new tenant is depends on the exact wording of your lease.  In rare cases, your lease may include the right for the tenant to assign the lease to someone else, but might not stipulate what conditions have to be met first.  The wording of leases does vary, and it is important that you understand exactly what rights your particular lease provides to you as the landlord.

Remember, even if as landlord you agree to the assignment of the lease, this does not always mean that the original tenant’s obligations under the lease are immediately terminated. You may still be able to fall back on original tenant and/or the original guarantor if assignee defaults. As always, it is determined by the wording of the lease and any other documents signed at the time of assignment.

If you have are in this situation we recommend that you consult your lawyer to understand exactly what your rights and obligations are under your current lease.  If you do not have a written lease in place with your current tenant, we strongly recommend that you instruct a lawyer to draft a lease recording the current terms of the lease immediately.

For assistance with a tenant assigning their lease or any commercial property matters, contact expert commercial property lawyer Wade Hansen  on  09 837 6885  or at  [email protected]

Is your tenant looking to assign their lease.

Ensure your investment is protecting through this transition – contact expert Commercial Property Lawyer, Wade Hansen today to set up an appointment.

+64 9 837 6885

assignment of lease nz

About the author

Born and bred in the West, Wade has a keen interest in developing the community and assisting businesses grow to their full potential. His experience in Property & Commercial Law, along with his common sense and level headed business knowledge Read More »

Related articles

Selling your business or moving premises assigning a commercial lease sep 12, 2014 | read more », negotiating your commercial leases as a landlord jul 4, 2013 | read more », what is a deed of lease feb 1, 2018 | read more », wade's recent articles.

assignment of lease nz

Before you build or renovate, read this – How changes to the Building Act impact consumers

22 February, 2012 | Wade Hansen

assignment of lease nz

Ensuring positive business cash flow with effective terms of trade

7 March, 2012 | Wade Hansen

Business Law

assignment of lease nz

What is a “Flats Plan”?

16 April, 2012 | Wade Hansen

Conveyancing / Buying & Selling Property

Commercial Leases

Rainey Collins Lawyers

  • Employment Opportunities
  • Sponsorships

Our Services

  • Recent Articles
  • Articles By Topic
  • Search Resources
  • Video Resources
  • Newsletters
  • Publications
  • Privacy and Data Protection
  • Join Our Mailing List
  • Your Resources RSS
  • Compliments & Complaints
  • Ask a Question

LinkedIn

Commercial leasing: assigning or subleasing – what’s the difference

The terms assigning and subleasing are often used in a commercial leasing context, to refer to when a tenant transfers their rights under a commercial lease to another party.  It is important to understand the distinctions between them and how they might be relevant in different situations, so that you can make sure you have the right arrangement in place in your circumstances.

Assigning a Lease

A tenant may want to sell their business or move to other premises, but if their lease has not come up for expiry yet they will not be able to terminate it.  Instead, they might need to assign their lease to the party who buys the business, or to a new tenant.

Landlord’s consent

Assigning a lease requires the landlord’s written consent.  Tenants often assume that it will be easy to get the landlord’s consent, but a landlord is likely to want to know (and is entitled to know) all about the new tenant including their financial situation, the nature of their business, and conducting reference checks. 

Essentially the landlord wants to make sure that the new tenant will be in a position to pay the rent and meet their obligations.  It is helpful for the original tenant to provide the landlord with as much information as possible about the prospective tenant when asking for consent.

Although they can conduct thorough due diligence on a prospective tenant, the landlord cannot unreasonably withhold their consent, nor can they ask for any extra payment in order to give their consent.  If a tenant has concerns about what their landlord wants in order to give consent, they should seek legal advice as soon as possible before agreeing to the landlord’s demands.

To formalise the assignment, a written Deed of Assignment of Lease needs to be completed and signed by all parties including the landlord. 

Original tenant’s liability

On a day-to-day basis the new tenant takes on all of the lease obligations.  However, the original tenant (and any guarantors to the lease) will remain liable under the terms of the lease until such time as it is terminated, varied, or renewed beyond the original renewal rights.

This means that should the new tenant fail to meet any of their obligations (for example if they get behind in their rent payments), the landlord could come after the original tenant and/or their guarantors.

What if the tenant does not have the landlord’s consent?

This can be very serious.  The original tenant will likely be in breach of their lease, as most leases will specifically require them to obtain the landlord’s consent to an assignment.  The landlord will be entitled to take action against the original tenant for the breach (for example to recover its losses). 

A sublease differs from an assignment of lease in that the original tenant (the “head tenant”) continues to be responsible for all of the lease obligations, but a subtenant is occupying the premises and paying a contribution towards the rent. 

Subleasing is common where a head tenant is not using all of their leased premises, and wants to make some additional money by subleasing a portion of the leased premises to a third party without giving up their own lease (the “head lease”) altogether.  By way of a Deed of Sublease, a subtenant agrees to pay rent for part of the premises, often a specific portion of a total area marked out on a floor plan, directly to the head tenant.

A head lease will often specify that the landlord must consent to a sublease.  It is best to ensure that this consent is recorded in writing in the Deed of Sublease.

If the subtenant is going to use the premises for a business use that differs from the head tenant’s as recorded in the head lease, then that new use must be disclosed to the landlord as part of obtaining their consent, and recorded in the Deed of Sublease as a variation of the head lease terms.

Head tenant’s liability

The head tenant remains liable to the landlord for the entire premises, even if a portion of that has been subleased. If a subtenant fails to make payments, the head tenant should take legal advice as soon as possible.   

The subtenant must comply with the terms of the head lease as well as their own sublease arrangement, so it is essential that they receive a copy of the head lease at the outset.  A subtenant should not sign a subleasing agreement without having reviewed the head lease first, otherwise they may find themselves with obligations they cannot fulfil.

Tenants wanting to sublease should make sure that their proposed subtenant is reliable and able to meet their obligations under the sublease arrangement.  This can include asking for financial information and conducting reference checks with the subtenant’s permission. 

Share responsibilities

If the head tenant is subletting only part of the premises, it may be necessary to consider how responsibilities relating to the lease are shared – for example access, insurance, and utilities.  Responsibilities may be shared between the landlord, head tenant and subtenant.  The agreed arrangement should be recorded in writing in the Deed of Sublease to avoid any doubt between the parties.

If you want to enter into an assignment or subleasing arrangement, or have concerns about your commercial lease, talk to your legal advisor to find out what is best for you.

Claire Tyler Commercial Lawyer Wellington

You are here:

104 Years

If you are a New Zealand Super Gold Card Holder (Australian Senior Cards do not qualify) we will give you a 75% discount of the fee for one of our set fee 1 hour initial consultations. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5% off any subsequent matters for you.  These discounts relate to your personal matters only (i.e. not business, trust or organisational matters or the sale and purchase of investment properties).

To receive the discount please let us know if you are a New Zealand Super Gold Card Holder.

Your Resources

Terms & Conditions

Privacy Policy

Rainey Collins Lawyers is one of New Zealand's top law firms comprised of a wide range of experienced and skilled barristers and solicitors, making us experts in nearly all legal fields.

We provide litigation, legal representation and advice in fields such as employment law, buying and selling properties, setting up a family trust, commercial law, property law, Māori land, family law, relationship property, body corporates and construction. In addition to these legal services, we also provide highly efficient debt collection New Zealand wide for clients from large companies right through to small businesses and individuals.

Based in New Zealand's capital, our firm has a prime position in taking on cases not only from Wellington, but from all over Aotearoa, having helped a wide range of clients for over 100 years.

Level 19  113-119 The Terrace  Wellington

Phone: 04 473 6850 Email: [email protected]

assignment of lease nz

Copyright © Rainey Collins Lawyers, 2015 | Designed by Expert and Powered by MoST Infrastructure Platform

Arrow

Harkness Henry Lawyers

  • 25 May 2012

Obtaining a Landlord’s consent – assignment of a lease

Where a lease requires the tenant to obtain the landlord’s consent, the property law act 2007 says that the landlord cannot ‘unreasonably’ withhold or delay that consent. any considerations or obligations to consent set out in a lease must also be reasonable..

assignment of lease nz

Under most leases a tenant will require landlord’s consent to undertake lterations, change the use of the premises or assign the lease to a new tenant.  If a tenant does not obtain the landlord’s consent to these matters, or any other matters that the lease specifies needs landlord consent, the tenant will be in breach of the lease.

Assignment of lease

If a tenant wants to sell its business or no longer wants to trade from the current premises then the tenant cannot terminate the lease unless the lease term is at an end.  Therefore the tenant may need to assign the lease to a purchaser of the business or a new tenant.  Assignment requires landlord’s consent.

Upon the sale of a business it is a condition of the usual agreement for sale and purchase that landlord’s consent to the assignment of the lease to the purchaser is obtained.  Many people assume that this is a rubber stamping exercise, but new tenants need to be prepared.  It will be easier for a landlord to make a faster decision if the landlord is provided with relevant information at the time of the application for consent.  An application should include information on the purchaser of the business or the new tenant and guarantors, including a CV or work experience details (especially business or industry experience), financial statements of assets and liabilities, and evidence of the character of the purchaser.  This information needs to be provided by the new tenant.  The application needs to show the landlord that the prospective new tenant has the skills and finance to pay rent and run a profitable business from the premises.

The application for consent in relation to long term and complex leases will need to be more thorough.  In particular motel leases are generally a 10 to 25 year term and the tenant has very high obligations as to business conduct, profit goals, repairs and maintenance.  A motel lease is usually not just for the premises, but for the motel business and that business’s goodwill and income stream.  Therefore the information the landlord needs may include a Police check, a face to face meeting, credit checks, references, or mandatory industry experience, in addition to the standard requirements set out above.

A landlord will insist on a written deed of assignment to bind any new guarantors into the lease obligations.  It is also prudent for the new tenant to have the assignment in writing, to provide certainty as to the landlord’s consent.

Assignment without landlord’s consent

If a tenant assigns without landlord consent the Property Law Act 2007 states that the assignment will take effect and a new landlord–tenant relationship is created immediately on assignment.  This is helpful to a landlord, as the new tenant will be bound by the lease terms, and the landlord can take action directly against that new tenant if necessary.  That does not mean that the previous tenant is off the hook.

In most situations, the terms of the lease will still require a tenant to obtain landlord consent to an assignment and therefore without it the tenant is in breach of the lease. The landlord has the right to take action against a tenant for breaching the lease.

Ongoing liability

After assignment of the lease the old tenant and any guarantors remain liable under the existing terms of the lease until the lease terminates, is varied or renewed beyond the original lease renewal rights.

Landlord’s obligations

Where a lease requires the tenant to obtain the landlord’s consent, the Property Law Act 2007 says that the landlord cannot ‘unreasonably’ withhold or delay that consent. This obligation cannot be amended in the lease document and the only way a landlord can avoid giving consent to a ‘reasonable’ request is for the lease to expressly prohibit any right of assignment.

A landlord may still withhold consent, but the landlord’s decision will always be open to review and the tenant can request that the landlord provide reasons for refusing or for imposing obligations or pre-conditions.  Obtaining the reasons for a decision may then put the tenant in the position of having to make a further application to the landlord that addresses the issues raised by the landlord, and the landlord will be required to  consider the application again.

The test of what is ‘reasonable’ is what a reasonable person would do in the circumstances.  The landlord is entitled to make a decision based on the application presented by the tenant which is why the information provided to the landlord is important.  The landlord must give full consideration to the circumstances of which that landlord is aware.

A landlord cannot ask for a consent payment or an “improper amount” from the outgoing or new tenant.  As the tenant is contractually bound to pay rent, rates and other outgoings the landlord can ask that any outstanding monies are paid prior to the assignment but the landlord cannot ask for an assignment payment or any additional obligations for the old tenant and new tenant.  The tenant will also be liable for the landlord’s reasonable costs in assessing the application for consent.  Those  costs should be kept down if the landlord is provided with sufficient information at the start of the process for them to make a quick decision.

If a person (the Property Law Act 2007 does not specify just the tenant) suffers loss because the landlord withheld or delayed consent unreasonably, then that person may be able to recover damages against the landlord.

As a tenant, do not assume that obtaining landlord consent is a rubber stamping process.  A landlord must act reasonably to come to a  decision on the basis of the circumstances and the application that the tenant makes.  Therefore the information provided to a landlord when making a request for consent is very important, and if it is comprehensive will make it easier for the Landlord to make a decision quickly.

A landlord must act reasonably in coming to a decision and the tenant can review that decision.  A landlord, therefore, needs to have legitimate reasons for withholding consent.  As always, good communication will usually ensure that the consent process works for both parties.

This article is current as at the date of publication and is only intended to provide general comments about the law. Harkness Henry accepts no responsibility for reliance by any person or organisation on the content of the article. Please contact the author of the article if you require specific advice about how the law applies to you.

For further information

Sandra Braithwaite - Harkness Henry Partner

Sandra Braithwaite

Related posts.

Man Reading With Magnifying Glass

assignment of lease nz

Landlords, can a tenant assign their lease?

20 February 2019

The rights of the landlord and tenant around the assignment of a lease will depend on either the written terms of your lease or the Property Law Act 2007 (“PLA”); If you don’t have a written form of lease, then the tenant has no right to assign the lease (see section 210 of the PLA). If you do have a written lease but there’s no mention of the tenants’ rights around assigning the lease, then the PLA provisions will apply. Most commercial leases are drafted using the Auckland District Law Society (ADLS) Deed of Lease; However, the wording in ADLS leases can be different (depending of the age of the lease, or if amendments have been made to the standard terms) so it’s important to understand exactly what rights you have

The current form of ADLS lease states that the tenant has a right to assign the lease, but must obtain written consent from the Landlord. However, the kicker under this form of lease is that as a Landlord, you cannot unreasonably withhold your consent to the assignment. It’s important to understand on what terms you can withhold consent. As a landlord your consent is subject to the following:

  • The new tenant being respectable, responsible and has the financial resources to meet the commitments under the lease.  In order to meet the test, its standard practice that the proposed new tenant would have to provide you with details of their assets and liabilities, and any previous business experience. If they have no assets and high debt, this may be enough for you to refuse to give your consent to the assignment of the lease.
  • All rent owing by the current tenant has been paid and they aren’t in breach of the lease.  This is a bit of an odd one, as if the current tenant is in arrears of rent then you would probably rather see the back of them sooner rather than later. If the current tenant is in arrears, then this is the ideal opportunity to only give your consent on the basis you get paid any money owing to you.
  • A deed of covenant is signed and the landlord is provided with a copy.  The standard ADLS deed of assignment ties the new tenant to the terms of the lease. The deed of assignment is a key document that the parties enter into, as it records that the current tenant is still liable to you if the proposed new tenant breaches the lease after the assignment has taken place.
  • If the proposed tenant is a company, then a guarantee from the shareholders of the company should be provided.  As a landlord you must remember that even if a company looks good on paper, it can easily be put into receivership or wound up. Without a guarantee from the directors/shareholders, you really have no protection. As discussed in point 1 above, it would also be prudent to get the details of the guarantor’s assets and liabilities. If the shareholders have all their assets tied up in a trust, then the trust should also be the guarantor under the assignment/lease.
  • The current tenant must pay your reasonable legal costs (regardless of whether your consent is given). Taking legal advice is critical in ensuring that you are well protected and even better when someone else is paying the bill.

Depending on the terms of your lease, the control you have over the proposed new tenant will vary; We recommend you seek specialist legal advice before entering into any documentation which relates to your lease.

Corporate & Commercial Team

Odette Cottle

Odette Cottle

assignment of lease nz

Please click on the document category to access the documents below it.

Partnerships.

  • Partnership agreement for equal partnership
  • Partnership agreement for un-equal partnership
  • Guarantee of Lease following assignment
  • Guarantee of Loan – Secured
  • Guarantee of Loan – unsecured
  • Guarantee to trade supplier after default – secured
  • Guarantee to trade supplier after default – unsecured
  • Guarantee to trade supplier – secured
  • Guarantee to trade supplier – unsecured
  • Notice of default to Guarantor
  • Short form guarantee of trade account
  • Deed of renewal of Lease no guarantor
  • Deed of renewal of Lease with guarantor
  • Deed of rent review no guarantor
  • Deed or rent review with guarantor
  • Equipment Lease
  • Lease of Commercial Premises No Guarantor
  • Lease of Commercial Premises with Guarantor
  • Notice of intent to cancel lease for breach (not rental)
  • Notice of intent to cancel lease for unpaid rental
  • Assignment of lease with Guarantor
  • Assignment of lease with no Guarantor
  • Sublease no Guarantor
  • Sublease with Guarantor
  • Variation of lease
  • Lease of Commercial Unit Title Premises with Guarantor
  • Lease of Commercial Unit Title Premises without Guarantor
  • Company Agenda and Minutes Pack
  • Certificate of non-revocation of power of attorney
  • Company power of attorney – for specific property
  • Company power of attorney – for specific purpose
  • Company power of attorney – unlimited
  • Notice of revocation of power of attorney
  • Short Form Liquidation
  • Short Form Amalgamation
  • Agreement for sale and purchase of shares and current account
  • Agreement for sale and purchase of shares

Loan Agreements

  • Loan Agreement – interest and principal
  • Loan Agreement – on demand no interest
  • Loan Agreement – on demand with interest
  • Loan Agreement – fixed term interest if demanded
  • Loan Agreement – fixed term – interest only
  • Conflict and Interests Policy

Distribution

  • Distribution agreement from importer
  • Distribution agreement from manufacturer
  • Distribution agreement from manufacturerwith after sales service required

Confidentiality Agreements

  • Confidentiality Agreement (contractor)
  • Confidentiality Agreement (unilateral)
  • Confidentiality Agreement (mutual)

Nominations & Assignments

  • Assignment of contract
  • Assignment of Debt
  • Nomination with vendor consent
  • Deed of nomination
  • Transfer of Contract

Service Agreements

  • Agreement for contracted services - administration
  • Agreement for contracted services – consultant
  • Agreement for contracted services

Sale Contracts

  • Terms of Trade and Credit Application Form

Non Competition/Restraints

  • Deed of Restraint of Trade on sale of business
  • Deed of Restraint of Trade on sale of shares
  • Deed of Restraint of Trade

Business Information

assignment of lease nz

LegalDocuments.co.nz is not a law firm and that you are not receiving any legal advice through this site.

The use of any information, agreement, Document or user guide on this site does not create a lawyer client relationship of any kind between the user of the form and us, or any employee or person associated with us.

Loan agreements

  • Loan Agreement –on demand no interest
  • Holiday rental agreement
  • Residential Tenancy Agreement (Fixed term)
  • Residential Tenancy Agreement (Periodic)
  • Residential Tenancy Agreement (short term)
  • Guarantee of Loan – Unsecured
  • Deed of Gift Cash
  • Deed of Gift Chattels
  • Final release of balance of Debt
  • Full forgiveness of debt
  • Partial forgiveness of debt

Nominations  & Assignments

  • Transfer of contract
  • Agreement for private sale of personal property
  • Agreement for sale of a boat
  • Agreement for private sale of a car

Power of Attorney

  • Certificate of Non Revocation of Power of Attorney
  • Personal Power of Attorney Unlimited
  • Personal power of Attorney for particular property no sale or mortgage
  • Personal power of attorney for specific property
  • Power of Attorney for particular real estate unlimited
  • Revocation of power of attorney

Personal Agreements

we will be releasing other Not for Profit soon

Charitable Trust

  • Charitable Trust Deed
  • AGM Agenda and Minutes for Charitable Trusts

Not for Profit Agreements

  • Declaration of trust for bank account
  • Declaration of trust for property previously purchased on behalf of another
  • Declaration of trust for property to be purchased on behalf of another
  • Deed of appointment of new trustee
  • Deed of notice of retirement of trustee
  • Deed of removal of trustee
  • Deed of retirement of trustee with indemnity from continuing trustees
  • Short form declaration of Bare trust for Property
  • Short form Declaration of Bare trust for shares
  • Simple Declaration of trust for individual beneficiary
  • Trustee Agenda And Minutes Pack
  • Declaration of medical wishes – no treatment
  • Declaration of medical wishes – palliative care only
  • Will – children no spouse
  • Will – No spouse or children
  • Will – spouse and children
  • Will – spouse no children

Wills and Trusts

assignment of lease nz

Can't find it?

Search for it here.

If you still can't find what you're looking for then contact us.

assignment of lease nz

Over 20 years of legal experience

All documents, forms, contracts, and agreements are prepared according to New Zealand law by accredited New Zealand lawyers.

Document Preview

Click the images below to preview a document. All documents come with a user guide which includes an overview, practical tips, and step by step document instructions.

assignment of lease nz

PLEASE NOTE:

Once you have purchased your document through paypal you will be  redirected back to this website to the download link . you will also receive an email with your receipt and the download link. if you don't receive the email then please check your spam folder ., latest articles.

  • Assigning Contracts
  • Notice of meetings – requirements and good practice
  • Documenting Company Decisions – Agenda and Minutes Pack
  • Using Company Powers of Attorney can avoid risks
  • Pre-approved finance – read the fine print

Release of assignors and guarantors of leases

Although it often comes as a surprise to many tenants and guarantors, most landlords are aware that an assignment of lease by an existing tenant (the Assignor) to a new tenant (the Assignee) does not release the Assignor or existing guarantor(s) from the obligations they took on under the lease (unless of course the Deed of Assignment contains a specific release clause). This principle has been reaffirmed in the terms of the Property Law Act 2007 (Section 241).

In practice, what that means is that even though the previous tenant no longer has anything to do with the premises or the new or ongoing business being run from the premises, it can still be “on the hook” to the landlord should rent fall into arrears etc. Indeed, although it is unusual in practice, the landlord is actually under no obligation to go after the current tenant for arrears if it considers the previous tenant and/or its guarantor(s) to be a “better bet” in terms of recovery.

It is however often thought that an Assignor and its guarantor(s) remain “on the hook” for the duration of the lease. The 2011 case of New Wing Development v Wain reminds us that matters are not quite as simple as that.

The case has some degree of complexity, and as yet only preliminary matters have been dealt with, but the summary judgement hearing raised two significant points that landlords, assignors and guarantors should bear in mind:

1. Where a right of renewal contained in the original lease is exercised by an Assignee after the lease was assigned to it, the Assignor and its guarantor(s) are no longer liable for any obligations undertaken in the original lease – this is because the renewal of the lease is deemed to constitute a new lease to the existing tenant (the Assignee).

2. Unless the original lease contains an option to extend the length of the term (which is unusual), a lease extension agreed between landlord and (current) tenant is also deemed to constitute the surrender of the existing lease and its replacement with a new lease for the longer term.

This means that when a lease is assigned, the Assignor and its guarantor(s) remain “on the hook” but only until such time as the Assignee exercises a right of renewal contained in the lease or the Assignee and the landlord enter into a lease variation to extend the term of the lease. Once either of those events occurs, the Assignor and its guarantor(s) are released from their obligations, even though they will not be a party to, and most likely will have no knowledge of, the renewal or extension of the lease.

Article is supplied by East Brewster Ltd in Rotorua – Commercial and Property Law Specialists

assignment of lease nz

LegalDocuments.co.nz is not a law firm and you are not receiving any legal advice through this site.

The use of any information, agreement, document or user guide on this site does not create a lawyer client relationship of any kind between the user of the form and us, or any employee or person associated with us.

  • Terms and Conditions
  • Privacy Policy

Logo of the Parliamentary Counsel Office

New Zealand Legislation

List of access keys.

  • Skip to main content
  • Advanced search
  • About this site
  • How the site works
  • Access keys
  • Accessibility
  • About legislation
  • Tagged sections/clauses
  • Printing order

Quick search

My recent searches, whakatōhea claims settlement act 2024.

  • By sections
  • View whole (662KB)
  • Versions and amendments
  • Secondary legislation
  • Add to web feed
  • Order a commercial print
  • Print/Download PDF [870KB]
  • Previous section
  • Next section
  • Tag section
  • Previous hit

Subpart 2 —Right of first refusal over RFR land

Interpretation, 127 interpretation.

In this subpart and Schedule 3 ,—

control , for the purposes of paragraph (d) of the definition of Crown body, means,—

for a company, control of the composition of its board of directors; and

for another body, control of the composition of the group that would be its board of directors if the body were a company

Crown body means—

a Crown entity, as defined in section 7(1) of the Crown Entities Act 2004; and

a State enterprise, as defined in section 2 of the State-Owned Enterprises Act 1986; and

the New Zealand Railways Corporation; and

a company or body that is wholly owned or controlled by 1 or more of the following:

a Crown entity:

a State enterprise:

a subsidiary or related company of a company or body referred to in paragraph (d)

dispose of , in relation to RFR land,—

to transfer or vest the fee simple estate in the land; or

to grant a lease of the land for a term that is, or will be (if any rights of renewal or extension are exercised under the lease), 50 years or longer; but

to avoid doubt, does not include—

to mortgage, or give a security interest in, the land; or

to grant an easement over the land; or

to consent to an assignment of a lease, or to a sublease, of the land; or

to remove an improvement, a fixture, or a fitting from the land

expiry date , in relation to an offer, means its expiry date under sections 130(2)(a) and 131

notice means a notice given under this subpart

offer means an offer by an RFR landowner, made in accordance with section 130 , to dispose of RFR land to the trustees

public work has the meaning given in section 2 of the Public Works Act 1981

related company has the meaning given in section 2(3) of the Companies Act 1993

RFR area means the area shown on SO 557498

RFR landowner , in relation to RFR land,—

means the Crown, if the land is vested in the Crown or the Crown holds the fee simple estate in the land; and

means a Crown body, if the body holds the fee simple estate in the land; and

includes a local authority to which RFR land has been disposed of under section 136(1) ; but

to avoid doubt, does not include an administering body in which RFR land is vested under section 137(1)

RFR period means the period of 181 years that starts on the settlement date

subsidiary has the meaning given in section 5 of the Companies Act 1993.

  • The Parliamentary Counsel Office
  • www.govt.nz

IMAGES

  1. Lease Assignment Form

    assignment of lease nz

  2. Tenant Assignment of Commercial Lease Form

    assignment of lease nz

  3. Assignment Of Lease Agreement printable pdf download

    assignment of lease nz

  4. New Zealand Notice to Tenants of Assignment of Commercial Lease

    assignment of lease nz

  5. Assignment Of Lease By Lessee

    assignment of lease nz

  6. How to Fill a Lease Assignment Form

    assignment of lease nz

VIDEO

  1. ভূমি অপরাধ প্রতিরোধ ও প্রতিকার আইন ২০২৩ মন্ত্রিসভায় অনুমোদন || ভূমি আইন ২০২৩ মন্ত্রিসভায় অনুমোদন

  2. NIOS class 10th Painting Important Chapter Revision || Complete Syllabus

  3. 🔥Assignment Abroad Times Jobs in Turkey🇹🇷 UAE🇦🇪Oman🇴🇲Soudi Arabia🇸🇦Fresher Can Apply#gulfjobs2024

  4. The Truth Will Set You Free by John Piper

  5. Attitude Adjustment Comes After Seeing Vehicle Already Hooked

  6. Waive the assignment fee cap as a wholesaler and earn what youre worth

COMMENTS

  1. How Do I Assign a Commercial Lease in NZ?

    If you wish to assign an unregistered lease, the most common method is through a deed of assignment. A deed of assignment is a written document that meets specific criteria. A deed of assignment will usually contain: the names of the parties involved; a description of the lease in question, including the length of the lease term;

  2. Commercial Lease Differences

    An assignment of a lease involves the new tenant (commonly referred to as the assignee) agreeing to take on all of the existing tenant's (commonly referred to as the assignor) lease obligations. The transfer of the interest is for the remaining duration of the lease. ... We can expect a similar approach to be taken in the New Zealand Courts ...

  3. Deed of Assignment of Lease

    Get a Deed of Assignment of Lease drafted by expert legal team. Sprintlaw offers smart, simple and affordable legal solutions for small businesses and startups. Our legal experts are ready to help wherever you are in New Zealand. "They've helped us tremendously and are seriously knowledgeable and honest.

  4. 6 Things to Consider With an Assignment of Lease

    Review your Lease - make sure you have a copy of your current Lease Agreement to understand the renewal dates, lease expiry and your obligations. Landlord approval - For an Assignment to proceed it is conditional upon the Landlord's approval (10 working days), this includes if a change in business use is required for the incoming Tenant ...

  5. Assigning Your Commercial Lease When Selling Your Business or Moving

    An assignment of lease is when you assign your obligations to the landlord under the lease, to a new tenant. This new tenant will become responsible for paying the rent, outgoings, renewing the lease, etc. ... Wade Hansen on 09 837 6885 or at [email protected]. Do you need to assign your lease? Ensure your interests are protected ...

  6. Assigning A Lease

    This is also known as a Deed of Assignment, which we've written about in more detail here. The Process Of Transferring A Lease. Transferring a lease in New Zealand doesn't have to be a complicated process. Let's simplify it. 1. Review The Existing Lease

  7. Change of tenant » Tenancy Services

    Assignment of a tenancy agreement (transfer of an agreement) An 'assignment' is the transfer of an existing tenancy agreement from a departing tenant (s) to a new tenant (s). This includes any conditions agreed to in the tenancy agreement by the landlord and existing tenants. For example, a group of tenants may need to leave a fixed-term ...

  8. Commercial Leasing

    A Deed of Assignment of Lease is used when a tenant wishes to assign its interest in an existing lease to another party, for example, a purchaser of its business. Generally the landlord's consent to the assignment will be required. Upon assignment, the incoming tenant will become liable to perform the existing tenant's obligations under the ...

  9. Commercial real estate guidance

    For enquiries, please email [email protected], and our team will respond as soon as possible from Monday 10 June. The Real Estate Authority. Main navigation. Real estate professionals; ... If the lease is to be assigned, the deed of assignment of the lease will need to be completed within the timeframe specified on the front page of the ...

  10. My Commercial Property Tenant Wants To Assign Their Lease? » Smith and

    part 4 of the Property Law Act 2007 ("PLA 2007"). If you do not have a written lease, pursuant to section 210 of the PLA 2007, the tenant has no right to assign. Further, if you do not have a written lease, either party may terminate the tenancy at will, giving only 20 working days notice. This is why we strongly recommend you have a lawyer ...

  11. Commercial leasing: assigning or subleasing

    A sublease differs from an assignment of lease in that the original tenant (the "head tenant") continues to be responsible for all of the lease obligations, but a subtenant is occupying the premises and paying a contribution towards the rent. ... Based in New Zealand's capital, our firm has a prime position in taking on cases not only from ...

  12. PDF Request for assignment

    A response notice template is available on the Tenancy Services website.1. From 11 February 2021 assignment may only be prohibited in a tenancy agreement if the landlord is a social housing landlord as described in section 53B(1)(a) of the Residential Tenancies Act 1986 or if the tenancy was granted before this date.

  13. Obtaining a Landlord's consent

    A landlord will insist on a written deed of assignment to bind any new guarantors into the lease obligations. It is also prudent for the new tenant to have the assignment in writing, to provide certainty as to the landlord's consent. Assignment without landlord's consent. If a tenant assigns without landlord consent the Property Law Act ...

  14. Landlords, can a tenant assign their lease?

    20 February 2019. The rights of the landlord and tenant around the assignment of a lease will depend on either the written terms of your lease or the Property Law Act 2007 ("PLA"); If you don't have a written form of lease, then the tenant has no right to assign the lease (see section 210 of the PLA). If you do have a written lease but ...

  15. PDF DEED OF ASSIGNMENT OF LEASE

    THE LANDLORD consents to the assignment but without prejudice to the Landlord's rights powers and remedies under the Lease, If any Lease Variations are specified in the First Schedule the Landlord, the Assignor, the Assignee and the Guarantor agree that as from the Date of Assignment the Lease is varied as set out in the Lease Variations.

  16. Assignment of tenancies » Tenancy Services

    Assignment of tenancies. From 11 February 2021, landlords must consider all requests from tenants to assign the tenancy and must not decline unreasonably. Landlords may include reasonable conditions when giving consent for assignment. This does not apply to a tenancy granted before 11 February 2021 if the tenancy agreement prohibits assignment.

  17. Business

    The deed is signed by the current tenant, the incoming tenant, the landlord and the Guarantor. The Deed does not affect any ongoing legal liability of the assigning tenant under the lease. The incoming tenant indemnifies the assigning tenant against any future liability. Price: $49.00.

  18. Release of assignors and guarantors of leases

    Release of assignors and guarantors of leases. Although it often comes as a surprise to many tenants and guarantors, most landlords are aware that an assignment of lease by an existing tenant (the Assignor) to a new tenant (the Assignee) does not release the Assignor or existing guarantor(s) from the obligations they took on under the lease (unless of course the Deed of Assignment contains a ...

  19. Liability of Lessees and Assignees of Commercial Leases in New Zealand

    the lease for the duration of the term. As the term had not expired or been surrendered the original tenant was obliged to fulfil his obligations notwithstanding the assignment of the lease. 10. The Grantees of Reversion Act 1540 is in force in New Zealand by virtue of the Imperial Laws Application Act 1988, s 3(1). 11. The Laws of New Zealand

  20. Whakatōhea Claims Settlement Act 2024

    the New Zealand Railways Corporation; and (e) ... to consent to an assignment of a lease, or to a sublease, of the land; or (iv) to remove an improvement, a fixture, or a fitting from the land. expiry date, in relation to an offer, means its expiry date under sections 130(2)(a) and 131.