Free Assignment of Leases and Rents

A document attached to a mortgage/deed of trust and loan agreement which entitles the lender to any income derived from the rental property once the debtor defaults on the loan.

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When an income producing property becomes collateral for a loan, the mortgage/deed of trust used does not always extend the security interest to the leases and receipt of rent associated with that income producing property. As a business-savvy lender, you recognize that the receipt of rent will make things easier for you by keeping a flow of money coming when the borrower defaults. What you can do to accomplish this is execute an Assignment of Leases and Rents.

Frequently Asked Questions

 

A document attached to a mortgage/deed of trust and loan agreement which entitles the lender to any income derived from the rental property once the debtor defaults on the loan.

 

Use of an Assignment of Leases and Rents may incentivize a lender to loan money. The effect of this document is to make it clear that any mortgage, deed of trust or the like that provides a lender an interest in a piece of real estate will also provide a security interest in the rental income generated by that property in the event there is a default on the debt.

 

If the borrower defaults, the assignment allows the lender to assume the place of the borrower with regards to existing leases and start collecting rent earned on the rental property.

To create your assignment, provide:

  • Effective Date: Select the date this assignment will be signed and made effective.

  • Assignor Details: The Assignor (the “borrower” of the loan) is the party that owns the property and is assigning their interest in the leases and rent that they receive. Give the name, contact information, and signing representative for the assignor.

  • Assignee Details: The Assignee (the “lender” of the loan) is the party that owns a mortgage or lien placed on the property owned by the Assignor. Give the name and contact information for the assignee.

  • Loan Amount: Enter the total amount of principal borrowed on the loan.

  • Collateral: Give the location and legal description of the property that secures the loan.

  • Security Instrument: Specify the type of security instrument that this assignment will be attached to.

  • Trustee Identity: If the loan was secured by a deed of trust, give the identity of the trustee associated with the arrangement.

 

Our propriety form generator will assist you in creating your customized Assignment of Leases and Rents within minutes. Answering the questions is not complicated – you only fill in the requested information and we will put it together for you.

 

Once you complete the questionnaire and place your order, it will be available for immediate download in either PDF or Word document from your secure online account including a step-by-step guide on how to use your document.

 

To be legally enforceable, the assignment must be signed by the Assignor in the presence of a notary public. The notary will also sign and stamp the document.