deed of assignment tenancy deposit

Deed of Assignment

Introduction.

Most of the time, when a tenant chooses to leave their property they will do so at the end of the fixed term of the tenancy and they will give you vacant possession of the property when they do.

However, sometimes one of your tenants will want to leave in the middle of a tenancy and the other remaining tenants will want to stay. In these circumstances if you do agree to allow them to leave the agreement, you can provide a new tenancy agreement that starts afresh, or you, the outgoing tenant, the remaining tenants and the replacement tenant can sign a deed of assignment. This will transfer the outgoing tenants interest in the property over to their replacement.

Deeds and signatures

As a deed this document must be signed by all parties but that signature must be witnessed by someone who is not a family member or a party to the agreement. The most appropriate way to do this is to have the witness be physically present in the room as the parties sign the deed.

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Deed of Assignment of Lease Agreement to transfer complete right to the Tenant.

Format of deed of assignment of lease agreement for transferring right to the tenant..

An assignment of a lease is a complete transfer of the right to be the tenant under the lease. The third-party assignee becomes the "tenant" under the lease, taking over all of the leased premises, substituting for the old tenant. When the lease is assigned, the assigner move out permanently and a new tenant moves in for the remainder of the lease term. An assignment of a lease differs from a sublet. With a sublet, the original tenant gives up an apartment temporarily. With an assignment, the original tenant gives up the apartment permanently. Assignment agreement should be legally binding, so it is necessary to prepare and sign a deed of assignment.

DEED OF ASSIGNMENT OF LEASE

THIS DEED OF ASSIGNMENT is made this ______ day of_____

Mr. _________________ son of _____________ Resident of _____________ hereinafter called "the Assignor" of the One Part:

Mr. _____________ Son of _____________ Resident of _____________ hereinafter called "the Assignee" of the Other Fart.

WHEREAS: 1. By a Deed of Lease dated_____________ and made between_____________ therein referred to as the Lessor of the One Part and the Assignor, therein referred to as the Lessee of the Other Part and registered with the Sub-Registrar of Assurances at _____________ under No _____________ of Book No. I on the _____________ the said Lessor demised unto the Assignor in perpetuity ALL that piece of land situate at_____________ and more particularly described in the Schedule thereunder being the same as described in the Schedule hereunder written together with the buildings and structures standing thereon at the rent and subject to the covenants and agreements therein contained;

2. By Clause_____________ of the said Deed of Lease it was in teralia provided as follows, "Not to assign the demised premises for the whole of the term hereby granted without the previous consent in writing of the Lessor his heirs, executors, administrators and assigns, which consent shall not be unreasonably withheld".

3. The Assignor has agreed with the Assignee for an assignment to him of the said demised premises for the remaining term in perpetuity free from all encumbrances at or for the price of Rs _____________.

4. The said Lessor by his letter dated_____________ has given his consent to the assignment of the demised premises.

NOW THIS DEED WITNESSETH that in pursuance of the said agreement and in consideration of the sum of Rs_____________ (Rupees) paid in the manner following viz. Rs_____________ on_____________ day of_____________ as earnest or deposit and Rs (Rupees) on or before the execution of these presents making together Rs _____________ (Rupees _____________ _____________. ) by the Assignee to the Assignor (the receipt whereof the Assignor doth hereby admit) He the Assignor hereby assigns unto the Assignee ALL that piece of land situate at_____________ in the Registration Sub-District of_____________ and more particularly described in the Schedule hereunder written TOGETHER WITH the buildings and structures thereon AND TOGETHER with all rights, liberties privileges, easements and appurtenances whatsoever to the said premises or any part thereof belonging or in anywise appertaining or usually held or occupied therewith or reputed to belong or be appurtenant thereto AND all the estate, right, title, interest property, claim and demand whatsoever of him the Assignor in and to the said premises or any part thereof TO HOLD the said land and other the premises hereby assigned unto the Assignee in perpetuity subject to the payment of ground rent of Rs_____________ reserved by the said Deed of Lease and to the performance and observance of the covenants and stipulations therein contained and on the part of the Lessee to be observed and performed and which henceforth on the part of the Assignee ought to be observed and performed.

AND THE ASSIGNOR COVENANTS WITH THE ASSIGNEE AS FOLLOWS - the said lease is now a valid and subsisting lease of the said premises hereinbefore expressed to be hereby assigned and is in no wise void or voidable that all the rents reserved and the covenants by the Assignor and the conditions contained in the said Deed of Lease have been paid, observed and performed upto the date of these presents; that the Assignor now has in himself good right and absolute power to assign the said premises unto the Assignee for the term and in the manner aforesaid that it shall be lawful for the Assignee from time to time and at all times hereafter during the said term to peaceably and quietly hold, possess and enjoy the said premises hereby assigned or expressed so to be with the appurtenances on and subject to said lease and receive the rents, and profits thereof for his own use and benefit without any eviction interruption claim or demand whatsoever from or by the Assignor or from or by any other person or persons lawfully or equitably claiming by, from, under or in trust for them. that the said premises are free and clear and freely clearly and absolutely acquitted, exonerated, released and forever discharged or otherwise by the Assignor well and sufficiently saved, defended, kepi harmless and indemnified of from and against all estates charges and encumbrances whatever made executed occasioned or suffered by the Assignor or by any other person or persons having or lawfully claiming by from under or in trust for him. that the Assignor and all persons having or lawfully claiming by. from, under or in trust for him shall and will from time to time and at all times hereafter during the said term at the request and costs of the Assignee do and execute or cause to be done and executed all such further and other lawful and reasonable acts, deeds, things, matters and assurances in the law whatsoever for further and more perfectly and absolutely assuring the said premises hereby assigned or expressed so to be and every part thereof unto and to the use of the Assignee for the residue of (he said term and in manner aforesaid as shall or may be reasonably required.

AND the Assignee doth hereby covenants with the Assignor that he the Assignee will henceforth during the said term pay the rents reserved by and perform all the covenants by the Lessee and conditions contained in the said Deed of Lease and keep indemnified the Assignor and his estate and effects from and against the payment of the said rent and the observance and performance of the said covenants and all actions, proceedings, costs, damages, claims, demands and liability whatsoever for or on account of the same or in anywise relating thereto.

IN WITNESS WHEREOF the parties hereto have hereunto set and subscribed their respective hands the day and year first hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

Signed and Delivered by the within-named Assignor

Signed by the within-named Assignee

Received from the Assignee above-named a sum of Rs_____________ today which together with the sum of Rs_____________ paid on_____________ as earnest makes up the sum of_____________ Rupees (Rupees) being the full consideration money to be paid by him to me. Witnesses:

I say received.

Relevant Sections of Transfer of Properties Act 1882

Section 107 "Leases how made"

107. A lease of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. Where a lease of immovable property is made by a registered instrument, such instrument or, where there are more instruments than one, each such instrument shall be executed by both the lessor and the lessee: Provided that the State Government may, from time to time, by notification in the Official Gazette, direct that leases of immovable property, other than leases from year to year, or for any term exceeding one year, or reserving a yearly rent, or any class of such leases, may be made by unregistered instrument or by oral agreement without delivery of possession.

Section 108 "Rights and liabilities of lessor and lessee"

108. In the absence of a contract or local usage to the contrary, the lessor and the lessee of immovable property, as against one another, respectively, possess the rights and are subject to the liabilities mentioned in the rules next following or such of them as are applicable to the property leased :-

A. Rights and liabilities of the Lessor (a) the lessor is bound to disclose to the lessee any material defect in the property, with reference to its intended use, of which the former is and the latter is not aware, and which the latter could not with ordinary care discover; (b) the lessor is bound, on the lessee's request to put him in possession of the property; (c) the lessor shall be deemed to contract with the lessee that, if the latter pays the rent reserved by the lease and performs the contract binding on the lessee, he may hold the property during the time limited by the lease without interruption. The benefit of such contract shall be annexed to and go with the lessee's interest as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested. B. Rights and liabilities of the lessee (d) if during the continuance of the lease any accession is made to the property, such accession (subject to the law relating to alluvion for the time being in force) shall be deemed to be comprised in the lease; (e) if by fire, tempest or flood, or violence of any army or of a mob, or other irresistible force, any material part of the property be wholly destroyed or rendered substantially and permanently unfit for the purposes for which it was let, the lease shall, at the option of the lessee, be void : Provided that, if the injury be occasioned by the wrongful act or default of the lessee, he shall not be entitled to avail himself to the benefit of this provision; (f) if the lessor neglects to make, within a reasonable time after notice, any repairs which he is bound to make to the property, the lessee may make the same himself, and deduct the expense of such repairs with interest from the rent, or otherwise recover it from the lessor; (g) if the lessor neglects to make any payment which he is bound to make, and which if not made by him, is recoverable from the lessee or against the property, the lessee may make such payment himself, and deduct it with interest from the rent, or otherwise recover it from the lessor; (h) the lessee may even after the determination of the lease remove, at any time whilst he is in possession of the property leased but not afterwards, all things which he has attached to the earth : provided he leaves the property in the state in which he received it ;

Legal Formats, Alphabetical Order

Agreement Formats

Assignment of Lease

Jump to Section

What is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

Under a sublease, the original lease agreement still remains in place.
The original tenant retains all responsibilities under a sublease agreement.
A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
The third-party in a sublease agreement does not have a direct relationship with the landlord.
The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

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Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

Do you have any questions about a lease assignment and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in lease assignment.

Meet some of our Assignment of Lease Lawyers

I grew up in Beaumont, Texas. I attended Baylor University for college and the The University of Texas School of Law for law school. I gained extensive experience in many areas of transactional law through my former position as corporate counsel at National Western Life Insurance Company and my current position as an Associate at Nance & Simpson, LLP.

Senior experienced contracts/transactions attorney in the Software Technology space. Also very versed in general corporate legal matters relating to business operations.

As a lawyer of 27 years, I have a great deal of experience handling many different types of legal projects. Starting with a simple estate plan or the purchase of a personal residence, and moving all the way to complex estate plans and real estate transactions. I regularly advise small business owners and real estate investors.

Trusted contracts attorney specializing in real estate and business law. I handle leases, land purchase contracts, investment valuations, cease and desist letters, and operating agreements.

I am a Berkeley Law 2020 graduate. I have experience working in finance and operations, plaintiff and defense litigation, and have been involved in multiple start-ups.

Jeanilou M.

Jeanilou G.T. Maschhoff has over 20 years of comprehensive business operations, finance, and development experience in addition to being a licensed attorney in California and Hawaii. She zealously works as a Trusted Advisor, Business/Brand Consultant, and Advocate for small businesses, non-profit organizations, and personal brands. She is dedicated to helping female business owners and professionals in the entertainment, beauty, fashion, and wellness industries make their goals a reality. She uses her diversified expertise to provide a holistic approach to addressing business and legal needs. Acting as a trusted advisor and outsourced general counsel, she assists on an array of business and personal matters. Passionate about social justice and assisting underrepresented populations, Jeanilou started her legal career working in the non-profit sector working towards access to justice and gender equity. She continues to assist non-profit organizations in many capacities and actively looks to partner businesses with charitable causes, creating a synergistic effect that benefits not only the organizations involved but our society as a whole. As an early adopter of the virtual practice of law, Jeanilou has been assisting law firms and solo practitioners adjust to the remote delivery of legal services and helping businesses explore Web 3.0.

30 year practitioner. Seasoned but not old. Wide variety of practice areas, including criminal, domestic and civil law.

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Contract to lease land from a church.

I’m planning on leasing land from a church. Putting a gym on the property. And leasing it back to the school.

Ok; first step is that you will need a leasing contract with the church. Ask them to prepare one for you so you would just need an attorney to review the agreement and that should cost less than if you had to be the party to pay a lawyer to draft it from scratch. You need to ensure that the purpose of the lease is clearly stated - that you plan to put a gym on the land so that there are no issues if the church leadership changes. Step 2 - you will need a lease agreement with the school that your leasing it do (hopefully one that is similar to the original one your received from the church). Again, please ensure that all the terms that you discuss and agree to are in the document; including length of time, price and how to resolve disputes if you have one. I hope this is helpful. If you would like me to assist you further, you can contact me on Contracts Counsel and we can discuss a fee for my services. Regards, Donya Ramsay (Gordon)

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Lease Assignment Agreement

Rating: 4.9 - 137 votes

A Lease Assignment Agreement is a short document that allows for the transfer of interest in a residential or commercial lease from one tenant to another. In other words, a Lease Assignment Agreement is used when the original tenant wants to get out of a lease and has someone lined up to take their place.

Within a Lease Assignment Agreement, there is not that much information included, except the basics: names and identifying information of the parties, assignment start date, name of landlord, etc. The reason these documents are not more robust is because the original lease is incorporated by reference , all the time. What this means is that all of the terms in the original lease are deemed to be included in the Lease Assignment Agreement.

A Lease Assignment Agreement is different than a Sublease Agreement because the entirety of the lease interest is being transferred in an assignment. With a sublease, the original tenant is still liable for everything, and the sublease may be made for less than the entire property interest. A Lease Assignment transfers the whole interest and puts the new tenant in place of the old one.

The one major thing to be aware of with a Lease Assignment Agreement is that in most situations, the lease will require a landlord's explicit consent for an assignment. The parties should, therefore, be sure the landlord agrees to an assignment before filling out this document.

How to use this document

This Lease Assignment Agreement will help set forth all the required facts and obligations for a valid lease assignment . This essentially means one party (called the Assignor ) will be transferring their rights and obligations as a tenant (including paying rent and living in the space) to another party (called the Assignee ).

In this document, basic information is listed , such as old and new tenant names, the landlord's name, the address of the property, the dates of the lease, and the date of the assignment.

Information about whether or not the Assignor will still be liable in case the Assignee doesn't fulfill the required obligations is also included.

Applicable law

Lease Agreements in the United States are generally subject to the laws of the individual state and therefore, so are Lease Assignment Agreements.

The Environmental Protection Agency governs the disclosure of lead-based paint warnings in all rentals in the States. If a lead-based paint disclosure has not been included in the lease, it must be included in the assignment. Distinct from that, however, required disclosures and lease terms will be based on the laws of the state, and sometimes county, where the property is located.

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At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

A guide to help you: Tenants and Subtenants Obligations under a Sublease Agreement

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Resources & Guides

Free Deed of Assignment Tenancy Agreement Sample Form and Template

A Deed of Assignment is a legal document that transfers the ownership rights and interests of a property or asset from one party, known as the assignor, to another party, known as the assignee. It is commonly used in real estate transactions but can also apply to other types of assets such as intellectual property rights, stocks, or contractual rights.

The Deed of Assignment serves as evidence of the transfer of ownership and provides a clear record of the transaction. It outlines the terms and conditions of the assignment, including the details of the parties involved, a description of the property or asset being assigned, and any applicable terms or conditions.

Key elements typically included in a Deed of Assignment are:

Parties: The document identifies the assignor (current owner) and the assignee (new owner) involved in the transaction. It is essential to provide accurate and complete information about both parties.
Description of the property or asset: The Deed of Assignment should include a detailed description of the property or asset being transferred. For real estate, this includes the physical address, boundaries, and any relevant identifying information. In the case of other assets, it may include specific details such as patent numbers or stock certificates.
Consideration: Consideration refers to the value or payment exchanged in return for the assignment. It can be in the form of money, goods, services, or any other agreed-upon consideration. The Deed of Assignment should clearly state the consideration provided by the assignee to the assignor.
Terms and conditions: This section outlines the specific terms and conditions of the assignment. It may include any restrictions, warranties, or obligations that the assignee must adhere to after the transfer of ownership. These terms are mutually agreed upon by both parties and are legally binding.
Signatures and witnessing: To make the Deed of Assignment legally enforceable, it requires the signatures of both the assignor and the assignee. Additionally, it is common to have witnesses present during the signing of the document to validate its authenticity.

Once the Deed of Assignment is signed and executed, it becomes a legally binding agreement between the assignor and the assignee. It ensures that the assignee acquires the rightful ownership of the property or asset, and the assignor relinquishes their ownership rights.

It is important to note that the requirements and legal implications of a Deed of Assignment can vary depending on the jurisdiction. Consulting with legal professionals or experts in the relevant field is recommended to ensure compliance with local laws and regulations.

When Can A Contract Be Signed As A Deed?

Under certain circumstances, a contract can be signed as a deed, distinguishing it from a standard contract. This is typically the case when the parties involved agree that no consideration, or payment, is necessary for the agreement to be valid.

As a more formal document, a deed follows a specific execution process. It requires the presence of a witness during the signing and in some cases, the use of a seal to authenticate the deed.

Is it Possible to Reverse a Deed of Assignment?

Once a deed of assignment has been executed and dated, it remains legally binding and enforceable until specific actions are taken. These actions include varying the deed using a deed of variation, surrendering it using a deed of surrender, or selling the property involved. If you intend to make changes to the original deed, it is more common to surrender the entire deed and then create a new deed with the desired modifications.

Which document do I require, a deed of assignment or a deed of trust?

When it comes to transferring the beneficial interest in land or property from one party to another, a deed of assignment is typically utilized. This document focuses solely on the assignment of the beneficial interest. On the other hand, a deed of trust can serve the same purpose but includes additional clauses that outline procedures for selling the property, among other things.

For most married couples seeking to assign their beneficial interest in an investment property, a deed of assignment is suitable for their needs.

Download a Deed of Assignment Tenancy Agreement Template

If you like a custom, completely personalised assignment agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.

Download CUSTOM Assignment Agreement

Alternatively, if you just want to download a generic deed of assignment of tenancy template, use the link below.

Download GENERIC Deed of Assignment of Tenancy Agreement

All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.

Can a landlord refuse to assign a lease in the UK?

In the United Kingdom, a landlord’s ability to refuse to assign a lease is governed by the terms of the lease agreement and relevant landlord and tenant laws. The Landlord and Tenant Act 1988 (as amended) provides certain protections and guidelines for both landlords and tenants regarding the assignment of leases.

Here are some key points to consider:

Lease Agreement Terms: The terms of the lease agreement will typically outline the conditions and requirements for assigning the lease. Some leases may include provisions that require the tenant to obtain the landlord’s consent before assigning the lease.
Reasonable Refusal: The Landlord and Tenant Act 1988 imposes certain restrictions on a landlord’s ability to unreasonably withhold consent to an assignment. Generally, the landlord’s refusal must be reasonable, and they cannot arbitrarily deny permission. Common reasons for refusal may include concerns about the financial stability of the proposed assignee or if the assignee’s intended use of the property violates the terms of the lease.
Landlord’s Costs: The landlord may be entitled to recover reasonable costs incurred in considering the request for assignment. These costs should be outlined in the lease agreement.
Procedure for Seeking Consent: The lease agreement may specify the procedure that the tenant must follow when seeking the landlord’s consent for an assignment. It is important for tenants to adhere to these procedures to ensure compliance with the terms of the lease.
Landlord’s Remedies: If the landlord believes there are valid reasons to refuse consent, they may have remedies available under the lease agreement or applicable law. However, these reasons must typically be specified in the lease.

It’s important for both landlords and tenants to be aware of the specific terms of the lease agreement and to understand their rights and responsibilities under the Landlord and Tenant Act 1988. If disputes arise, seeking legal advice is recommended to ensure compliance with the law and the terms of the lease. Additionally, the laws and regulations may be subject to change, so staying informed about any updates is advisable.

Assignment and succession of tenancy

Produced in partnership with morayo fagborun bennett of gatehouse chambers, introduction.

This Practice Note discusses assignment and succession of tenancy in England, with reference to the Housing Act 1985 (HA 1985), the Localism Act 2011 (LA 2011) and the Housing Act 1988 (HA 1988). It explains that assignment of a secure periodic tenancy is prohibited except in three situations. With effect from 1 April 2012, a registered social landlord can include express provisions in their tenancy agreements granting additional succession rights for assured tenants.

As of 1 December 2022, tenancies and licences of dwellings in Wales are governed by the Renting Homes (Wales) Act 2016 (RH(W)A 2016) (subject to certain exceptions). Secure tenancies may no longer be created and existing secure tenancies will convert automatically into occupation contracts. The terms of existing and new tenancies must be considered in the context of RH(W)A 2016 in order to establish whether or not they are occupation contracts for the purposes of RH(W)A 2016 and, if so, what kind of occupation contract. Tenancies and licences which are occupation contracts must comply with the comprehensive provisions of

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Morayo specialises in all areas of landlord and tenant and property law. Recent cases include Charalambous v Ng [2014] EWCA Civ 1604 (tenancy deposit schemes), Coope v Ward [2015] EWCA Civ 30 (easement of support and measured duty of care) and Farah v Hillingdon LBC [2014] EWCA Civ 359 (intentionality and homelessness). She also regularly acts in disrepair and dilapidation proceedings, service and estate charge disputes and residential and commercial lease renewals. Morayo’s public law practice includes community care, Court of Protection, deprivation of liberty, welfare benefits, homelessness, judicial review and discrimination law. Recent cases concerned the community care needs of life sentenced prisoners, a deprivation of liberty case on the interface between the MCH and MCA and a test case on the lawfulness of the current practice adopted by decision makers in Employment Support Allowance assessments. Morayo’s commercial practice covers contractual disputes in the property and employment sectors advocating in the courts and tribunals. A speciality is cases involving multiple discrimination complaints. Morayo came to the law with a background in philosophy and theology, graduating from St Hilda’s College, Oxford in 2000 with a 2:1. Her Masters in Crime, Human Rights and the International Community achieved a Distinction. She attained a commendation in the Common Professional Examination and was graded outstanding on the Bar Vocational Course in 2004.

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Deed of assignment of rent deposit(s) | Practical Law

Deed of assignment of rent deposit(s)

Practical law uk standard document 6-520-2981 (approx. 13 pages).

Deposit protection for joint tenancies

Home » Content Hub » Deposit protection for joint tenancies

Why is this guide important?

If you take a deposit relating to a joint and several tenancy agreements, you should familiarise yourself with our insured process to make sure that the deposit is protected correctly, including our key requirement to appoint a ‘lead tenant’.

This guide should be read in conjunction with our Membership rules .

Other authorised tenancy deposit protection schemes may have different rules and processes relating to deposit protection of joint tenancies. This guide relates to our processes only.

What is a joint and several tenancy agreement?

A joint tenancy agreement is created when two or more adults sign a single agreement, for the same length of time, to live in the rented property. They are collectively classed as a single tenant and will all be jointly responsible for the terms and conditions of the tenancy agreement, which is known as joint and several liability.

Strictly speaking, a joint tenancy is limited to a maximum of four people (although many agreements include more than four) and each person has full use of the property and equal rights under the tenancy.

What happens to the deposit under a joint tenancy?

In line with the Tenant Fees Act 2019, a single deposit can be taken for the tenancy, equivalent to no more than five weeks’ rent if the annual rent is less than £50,000 and six weeks’ rent if the annual rent is £50,000+. How many of the tenants contribute to the deposit is up to them and is most often split equally. At the end of the tenancy, the joint tenants are entitled to have their deposit refunded. However how it is distributed is up to the tenants, although many landlords do refund the deposit in the same way they received it e.g. if they received it in parts from individual tenants, this is how it is returned. Any specific requests the tenants may have, on how the deposit is to be refunded, should be agreed in advance and clearly documented.

How do we deal with joint tenancy deposits?

The landlord is responsible for telling us the names of every tenant listed in the tenancy agreement when protecting the deposit.

Once protected, the landlord must provide the tenants with a copy of the protection certificate and the prescribed information. If there are any mistakes or omissions, such as one tenant’s name missing, the tenant should tell the landlord and ask the landlord to inform us.

What is a ‘lead tenant’ and what is their role in deposit protection?

As we do not require the landlord to provide every tenant with separate documents confirming the deposit protection details, we only ask that the landlord nominate a ‘lead tenant’. The landlord must make sure that all the tenants agree to the person named as lead tenant, who will then be responsible for receiving all documents we send, and act on behalf of all tenants in dealing with us during the tenancy.

What happens if the lead tenant leaves or the tenants wish to change the lead tenant?

The landlord should inform us immediately when a new lead tenant has been appointed and we will update the tenancy details and the prescribed information which is then reissued, with the name of the new lead tenant.

We do this free of charge and the deposit remains protected at all times.

A new tenant has replaced one of the original co-tenants. Is the deposit still protected?

If the new tenant has simply replaced an existing one and all the other details of the tenancy are the same, the existing deposit protection will continue to be valid. However, the new tenant and the old tenant should draw up and sign a ‘deed of assignment’ to amend the contract.

It is essential that the landlord is involved in this process and make sure:

the incoming tenant agrees to take over responsibility for the deposit with the outgoing It is common practice for the incoming tenant to pay the outgoing tenant the equivalent share of the deposit
they inform both the new and old tenant of any intended deductions from the deposit at the end of the tenancy. If this is not done, the incoming tenant may have a strong case to dispute any proposed deductions for contract breaches committed before moving in, despite being joint and severally
we are informed of the change and provided with a copy of the deed of assignment. We will then confirm if the protection is still valid and amend the prescribed information. The landlord must then reissue it to the tenants who are required to confirm it is

What happens if there is a dispute at the end of a joint tenancy?

We will only accept a dispute from one of the tenants on behalf of all tenants, as we only recognise a single deposit protection and are unable to accept disputes for separate “shares” of the deposit.

Where this person is the lead tenant, we recognise the authority assumed by them at the start of the tenancy.

If one of the other tenants raises a dispute, it will be on the understanding that they:

have the express authority and acceptance from all co-tenants, including the lead tenant, that the dispute is being raised on their behalf and
the nominated tenant is responsible for distributing the money if they are entitled to a share of the disputed amount

One of the tenants is no longer in contact with any of the co-tenants. Can they still raise a dispute?

When a tenant raises a dispute they must declare that they accept responsibility for dealing with the dispute and this must be agreed by all the tenants.

We will then proceed with the dispute, and make a decision based on the evidence, but you must be aware that the tenant is responsible for distributing any money awarded.

There may be circumstances where a tenant raising a dispute is asked to sign the form as well as the co-tenants.

We are unable to get involved with disputes between tenants on how the deposit is allocated.

All but one of the co-tenants have agreed on how much of the deposit should be returned. Can that tenant still raise a dispute?

In this instance, the tenant will need to provide us with evidence of why they wish to raise a dispute and the amount of the deposit they wish to dispute. The co-tenants will then be asked to confirm that they do not wish to use our dispute resolution service in relation to this tenancy and accept that they will be unable to do so in the future, irrespective of the adjudication decision.

A tenant wanting to dispute more than their “share” of the deposit should be aware that, while this may be possible, the adjudicator will consider the evidence from the landlord as well as any robust agreement from the other tenants on their share of the deposit making this an unlikely possibility.

Deed of Assignment (Joint Tenants)

Notification.

Practical Law

On an assignment can a landlord retain a rent deposit from the assignor tenant?

Practical law resource id a-005-8542 (approx. 2 pages).

Landlord and Tenant

Suggestions

Assignment of assured and assured shorthold tenancies

Assignment of assured, assured shorthold, PRPSH demoted tenancies, and some agricultural tenancies depends on the terms of the tenancy agreement.

Right to assign of assured tenants

Housing association tenants, mutual exchange, planning restrictions.

Whether an assured or assured shorthold tenancy can be assigned depends on what is contained in the tenancy agreement.

The position regarding permission and consent is different from other tenancies.

Agricultural occupiers who are fully protected by the Housing Act 1988 have the same rights of assignment as assured tenants. Find out more about assured agricultural occupiers .

Periodic assured and assured shorthold tenants

The position depends upon what the tenancy agreement says about assignment. Periodic assured and assured shorthold tenants whose tenancy agreement says nothing about assignment cannot assign their tenancies unless their landlord consents. [ 1 ] In this case, landlords may withhold consent for any reason, whether reasonable or not. [ 2 ]

A tenant who assigns the tenancy without consent leaves the assignee in a vulnerable position as this is a breach of a term of the tenancy and is a discretionary ground for possession. [ 3 ] The exception to this is where a premium has been paid for the grant of tenancy, for example a tenancy deposit that is greater than one-sixth of the annual rent is a premium.

Otherwise, where the tenancy agreement:

allows assignment freely and without consent, assignment is allowed

expressly makes provision for the tenant to assign with the landlord's consent, the tenant will be able to assign with consent and such consent cannot be unreasonably withheld

forbids assignment, an assignment would be a breach of the tenancy agreement and could be subject to possession action

Fixed-term tenants

The rights of assured and assured shorthold tenants with fixed-term tenancies to assign their tenancies are governed by their tenancy agreements.

The rules on assignment above apply equally to assured and assured shorthold tenants of private registered providers of social housing (PRPSH). The rules for PRPSH demoted tenancies are the same as for periodic assured and assured shorthold tenancies, that is, generally only with the landlord's consent.

In addition, tenants of a PRPSH (or of a housing trust that is a charity) can mutually exchange with other social tenants.

Mutual exchange – assignment of tenancy

A secure tenant has the right to mutually exchange their tenancy by way of assignment to a fully assured tenant. [ 4 ] For more information see Secure tenancies and flexible tenancies .

Mutual exchange – transfer of tenancy

There is a statutory right to mutually exchange under the procedure introduced in section 158 of the Localism Act on 1 April 2012, where at least one of the tenancies is a periodic secure or assured tenancy which existed prior to 1 April 2012.

The right only applies where one of the following applies: [ 5 ]

assured shorthold tenant exchanges with a secure tenant

assured tenant exchanges with flexible tenant

assured tenant exchanges with assured shorthold tenant

In these cases, the exchange is not done by way of assignment. Instead, each tenant's tenancy is brought to an end and a new tenancy is granted for their new property. Each tenant retains their existing status (where the landlord condition for creating that type of tenancy allows it).

Each tenant wishing to exchange must make a request in writing to their own landlord. The landlord can only refuse consent on limited grounds. [ 6 ] Exchanges can take place between two or more tenants if each landlord consents.

An assured shorthold tenant cannot rely on the right in section 158 of the Localism Act to exchange their tenancy in accordance with that section if: [ 7 ]

their tenancy is for a fixed term of less than two years

their tenancy is periodic

the rent payable under their tenancy is affordable rent, Intermediate rent, Mortgage Rescue rent or shared ownership rent

In these cases a mutual exchange may only take place if each landlord gives permission, for example through a contractual term in the tenancy agreement.

For more detailed information see Secure tenancies and flexible tenancies.

An assured tenant could be refused permission for a mutual exchange by their landlord if the exchange would lead to a breach of a Section 106 planning agreement.

Section 106 of the Town and Country Planning Act 1990 allows a local authority to place legally binding obligations on a developer when it approves applications for planning permission. These restrictions will be binding on the owner of the property, unless the local authority agrees not to enforce a breach or to waive restrictions.

Planning obligations run with the land and will bind successive owners. [ 8 ] Breaches of a Section 106 agreement can be enforced by injunction. [ 9 ]

A Section 106 agreement can govern how a property is let, sold or otherwise disposed of. [ 10 ] The exact requirements of a Section 106 agreement will depend on the anticipated impact of the development and local needs.

A Section 106 agreement can be used to set additional restrictions on how a social housing property is let based on factors such as local connection or affordability. A landlord could refuse permission if a proposed mutual exchange breaches these restrictions. [ 11 ]

Last updated: 8 September 2022

s.15(1) Housing Act 1988.

s.15(2) Housing Act 1988.

Ground 12, Sch.2 Housing Act 1988.

s.92 Housing Act 1985.

s.158 Localism Act 2011.

s.159 Localism Act 2011.

reg.3 Transfer of Tenancies and Right to Acquire (Exclusion) Regulations 2012 SI 2012/696; see also para 7.3 of the Explanatory Memorandum to those regulations.

s.106(3) Town and Country Planning Act 1990.

s.106(5) Town and Country Planning Act 1990.

s.106(1) Town and Country Planning Act 1990.

ground 8, Sch.3 Housing Act 1985.

⛪ Rent deposit assignment

A rent deposit assignment is a legal document that assigns the responsibility for paying the rent on a property from one party to another. This type of assignment is typically used when a tenant is unable to make their rent payments and assigns the responsibility to a third party, such as a family member or friend. The assignment can also be used to assign the responsibility for paying the rent to a new tenant if the original tenant moves out before their lease is up.

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Deed Of Assignment For Rent Deposits (Occupation Lease)

England and Wales

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