e TecK leases allow for assignment, once appropriate notification and consent is given. Several of our tenants utilize this clause and have entered into arrangements with third parties to assign their lease.
A tenant must notify e TecK of its intention to assign and request consent. Once consent is provided, they can proceed with any necessary sale agreements and thereafter a Transfer of the Property.
We have noted in the past that tenants usually may notify of the intention to assign and request consent, however, they do not usually follow up and provide copies of the Memorandum or Transfer and/or Deed of Assignment. It is imperative that a tenant provide to the REA Division, as soon as practicable, copies of the registered transfer document.
Why is it important to provide a copy of this transfer document?
A registered transfer indicates that legal title has passed from one party to another and under what terms and conditions. It is only when e TecK receives this document that it can change its information regarding invoicing and other communications to the new Party/Tenant. If this document is not received, then e TecK will continue to recognize the old tenant and being the leaseholder and therefore liable to maintain all of the obligations and responsibilities under the lease, including payment of rent, insurance and services charges. It is therefore in the best interest of the tenant to have the transfer registered and copies provided to e TecK as Landlord.
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