Deed of assignment of arrears

by Practical Law Property

Maintained | England, Wales

A document to effect a legal assignment of the right to recover rent arrears from tenants following a commercial property sale in England and Wales. This standard document is for use where the property is subject to occupational leases and addresses the crucial distinction between 'new' and 'old' leases under the Landlord and Tenant (Covenants) Act 1995 (LTCA 1995). The right to recover arrears for new leases remains with the seller unless expressly assigned, whereas for old leases, the right typically passes automatically under section 141 of the Law of Property Act 1925 (LPA 1925). This deed is drafted to create a legal assignment satisfying the requirements of section 136 of the LPA 1925. It can be adapted for the initial assignment from seller to buyer on completion, or for the subsequent re-assignment of uncollected arrears from the buyer back to the seller, providing a clear framework for managing outstanding tenant payments post-completion.

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