However, this does not mean that your commitments regarding the lease expire if you assign the lease agreement. Once a lease has been granted and the business unit has ended, you of course want to reduce the risk of your former landlord suing you in the event of a breach of the rental terms by your successor. If your lease was granted after 1996, there are more restrictions on who the landlord can sue for a breach of the rental agreement. In most cases, the lessor requires you to submit an authorized warranty agreement when assigning the lease, which is a prerequisite for the assignment, otherwise you will not get an assignment license from your landlord. The advantage of the contract is that the responsibility for securing your successor`s obligations ends once your immediate successor has assigned the lease. Typically, the lessor`s lawyers provide a standard form for the lease assignment agreement. If the transferee does not withdraw, you remain liable until the lease expires. 1. The holder shall succeed to all rights in the guarantee relating to the assigned part of the loan. For landlords, the decision restores the widely accepted position – that a surety can guarantee the liability of an outgoing tenant as part of an AGM. This has the indirect effect of securing the new tenant`s commitments and addressing most of the difficulties arising from the Good Harvest decision. This means that it would be a good idea to prevent transfers between companies in the same group without the agreement of the lessor, in order to obtain an under-guarantee from an existing guarantor.
Alternatively, landlords must impose another form of control – for example, a financial test – to ensure that the new tenant is fit. A recent judgment of the Austrian Supreme Court stated that, when transferring a bank guarantee, any payment from the guarantor bank was made in favour of the beneficiary (i.e. the transferor). Any abuse of the bank guarantee by the transferee has the effect of asserting a right to reimbursement against the zechter, whether or not he is aware of the abuse. If you have any questions about authorized warranty agreements or would like Ringrose Law to act on your behalf for your business transaction, please contact a member of the commercial real estate team at Ringrose Law`s Boston office on 01205 311511. Your landlord can sue you, depending on the age of your lease and the approved warranty agreement. At first instance and on appeal, the courts ruled in favour of the applicant. As a general rule, rights relating to bank guarantees may be assigned; If the use of a transferred bank guarantee is not justified, the right to reimbursement of undue enrichment is generally invoked against the assignee. However, the Tribunal decided that the general rule did not apply in the present case. A guarantor should not be asked to directly guarantee the obligations of an assignee.
An owner should not accept such a guarantee if it is offered autonomously because it is ineffective. Tenants and their guarantors are automatically exempt from any liability vis-à-vis the lessor when a rental contract is legally assigned to a third party. Landlords may, however, require outgoing tenants to enter into AAs that guarantee the new tenant`s commitments under a lease agreement. . . .