Assigning a Commercial Lease When Selling a Business

The business sale and lease assignment must complete together. The seller should check landlord-consent conditions early, provide the buyer's financial and business information, arrange replacement guarantees or bank security, resolve breaches and obtain express release where negotiated.

Key issues

• Contract for sale conditional on assignment
• Landlord application and information
• Buyer suitability and permitted use
• Assignment deed and legal costs
• Existing arrears or breaches
• New personal or bank guarantees
• Release of seller and old guarantors
• Adjustment of rent, bond and outgoings A landlord's consent to the buyer taking possession does not necessarily release the outgoing tenant or guarantor. Require the documents to state the intended release. Book a coordinated business-sale and lease consultation.

Sources

• WA Government — Commercial tenancy information General information only.