Assignment Flashcards

1
Q

Who becomes landlord of assignee?

A

Same landlord

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2
Q

What is assignee entitled to

A

Exclusive possession of premises

Obliged to perform all tenant covenants

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3
Q

Consent required for assignment?

A

Absolute covenant - not allowed

Qualified covenant - only with LL consent

Fully qualified covenant - LL must act reasonably if deciding to withhold consent

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4
Q

Is qualified covenant upgraded to fully qualified?

A

Yes

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5
Q

When/how must LL give decision on consent

A

Within 28 days of having all information

In writing

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6
Q

Reasonable grounds for withholding consent

A

Assignee has unsatisfactory covenant strength
- Assignee’s proposed use would be breach of lease
- Assignee is in business that competes with LL
- If LL has a policy on different uses in different uses and assignee’s use would conflict

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7
Q

Unreasonable grounds with withholding consent

A

Personal grievance
Using consent as leverage
T has MINOR breaches of repairing covenant

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8
Q

Old leases - who remained liable after assignment?

A

Original tenant remained liable and only limited obligations passed to new tenant automatically

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9
Q

New leases- who is liable after assignment

A

Original T is released and new T becomes liable for all covenants

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10
Q

If lease is silent, can LL insist on AGA from outgoing tenant

A

Only if it is reasonable to do so

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11
Q

What happens if outgoing tenant gives an AGA, and the lease is subsequently assigned to another new tenant?

A

Outgoing T only guarantees the next tenant under AGA - if there is a subsequent assignment, the outgoing tenant’s liability ends

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12
Q

Assignment procedure

A
  1. T apply to LL for consent
  2. LL confirm receipt and check if need consent from lender. If want to proceed - LL drafts license to assign
  3. T deduces title and A investigates
  4. A raises pre-contract enquiries and searches - CPSE 1 and CPSE4
  5. LL ask T for undertaking for costs
  6. LL engross license to assign, triplicate and give one to each party to execute
  7. T send completion statement to A
  8. A raise pre-completion searches - OS1
  9. A draft deed of assignment - TR1
  10. L, T and A agree to complete license to assign via phone
  11. T and A agree to complete deed of assignment via phone
  12. A does pre-completion steps (pay SDLT and register deed of assignment if necessary), send notice of assignment to LL
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13
Q

Who drafts license to assign

A

Landlord

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14
Q

Who drafts deed of assignment and what form is used

A

Assignee

TR1

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15
Q

Pre- completion enquiries for assignee

A

CPSE1 and CPSE4 (specific to assignment of leases)

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16
Q

Pre completion searches for assignee

A

OS1

17
Q

What does landlord need to sign

A

License to assign

DOES NOT SIGN DEED OF ASSIGNMENT