BarbriSFCourseDetails

Course Details

This CLE webinar will closely examine assignment and permitted transfer provisions in commercial leases. The panel will discuss key differences between these provisions and under what circumstances they should be used. The panel will also offer negotiation and drafting considerations for landlords and tenants.

Faculty

Description

Some of the most heavily negotiated provisions in a commercial lease are those related to assignment and transfer. Assignment provisions provide a potential exit strategy for the tenant while offering the landlord the ability to maintain a revenue stream as the property continues to be occupied. Most commercial leases require landlord consent for a tenant to assign a lease, subject to defined criteria and obligations on both parties.

Permitted transfers, on the other hand, often allow the tenant greater flexibility in transferring its lease without landlord consent. Generally, permitted transfers are allowed under narrow circumstances and often depend on the tenant's financial well-being and purpose for the transfer.

Counsel should understand the key differences between assignments and permitted transfers as well as the pros and cons of each to best protect their clients' interests during the lease negotiation process and for potential changes in circumstances during the lifetime of the lease.

Listen as our expert panel provides an in-depth look at assignments and permitted transfers in commercial leases. The panel will discuss key differences between these provisions and under what circumstances permitted transfer language should be included in the lease. The panel will also offer best practices for negotiation and drafting for landlords and tenants.

Outline

  1. Introduction: the importance of assignment and transfer provisions
  2. Assignment provisions
    • Purpose
    • Key requirements
    • Landlord considerations
    • Tenant considerations
  3. Permitted transfer provisions
    • Purpose
    • Key requirements
    • Landlord considerations
    • Tenant considerations
  4. Best practices for negotiation and drafting
  5. Practitioner takeaways

Benefits

The panel will review these and other important considerations:

  • Why are assignment and transfer provisions some of the most heavily negotiated in commercial leases?
  • What key requirements should be included in an assignment provision? Permitted transfer clause?
  • Under what circumstances should counsel consider including a permitted transfer clause in the commercial lease?
  • When drafting assignment and transfer clauses, what are unique considerations for landlords? For tenants?