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Assignment of Rents In Alberta

Image from Pixabay

 

As of 2020, Canada’s rental, leasing and property management industries were estimated to be worth around $120.5 billion. Real estate is a rapidly growing sector, and several factors contribute to this growth. If you’re looking to get into this vast market, there are a few things you need to understand.

When it comes to transactions as complex as the assignment of rent in Alberta, it’s best to seek the advice of experienced lawyers. Complex legal issues can come into play in a real estate deal, and having a lawyer who knows the law inside and out can make all the difference.

In this article, we’ll take a closer look at what the assignment of rents in Alberta entails and provide insight for landlords and tenants so that they can navigate this process.

 

Key Takeaways:

  • Assignment of rent is one way for lenders to make back some money in case of delinquency.
  • General and specific are the two types of assignment of rent.
  • Both landlords and tenants can benefit from having a lawyer on their side in a property deal.

 

What does the assignment of rents mean?

In the province of Alberta, an assignment of rent is a document that allows mortgage lenders and banks to collect rent if the borrower fails to pay. A general assignment of rents applies to all tenants who live in the property, while a specific assignment of rents applies only to particular tenants.

The assignment of rents is a document that can be registered at the Alberta Land Titles Office, ensuring that the lender has the legal right to collect the amount of rent in the event of delinquency. Landlords and tenants need to understand the implications of this agreement and seek legal advice if necessary.

A lessee, who is the person that has rented the property, must pay the month-to-month rent even if the owner of the property has changed. Most rental agreements require this, and new tenants that move in have to abide by it.

If the property owner has changed, the new owner may need to know the existing covenants between the tenant and the previous owner. Lessees can also sublet or assign a rental property if they have the landlord’s consent.

Sublease contracts are a great way to earn back money on any rental property. They are usually set for a fixed amount of time and are generally governed by the original rental agreement. 

The new owner, however, must contact or give a written notice of landlord to the lessee when they move into the rental premises to remind them of their obligation to continue paying rent. If the tenant fails to do so and has unpaid rent, the property owner has reasonable grounds for the lessee’s eviction.

Failure to pay rent before the termination date is a substantial breach of any residential tenancy agreement. Delinquencies during the term of the lease can lead to lawsuits, which are very stressful and expensive.

If the new owner wants to impose a rent increase, they should provide written notices to the lessees. Both landlords and tenants must understand their rights and responsibilities under an assignment of rents agreement.

You should speak to a lawyer if you have questions or require dispute resolution. A lawyer can assist both parties in negotiating a fair and beneficial agreement.

How much does it cost?

When it comes to the assignment of rents in Alberta, one of the most important aspects is the lawyer’s fees, which is what the lawyer charges for their services in drawing up and reviewing the agreement. It’s important to remember that this is a separate fee from the cost of changing the land title.

It’s a good idea to shop around for a lawyer who offers a fair price for their services. Ask for quotes from several lawyers, and ensure you understand what’s included in their fees. It’s also important to note that only a few lawyers offer the same level of service. Some may be more experienced in real estate law than others. Therefore, it’s critical to do your research before choosing one.

If a property has multiple titles, there may be a registration fee, which Alberta charges to update the property’s land registry. This fee, which is separate from the lawyer’s service fee, can vary depending on the number of registered titles.

What are the different types of assignments of rent in Alberta?

There are two types of assignment of rents in Alberta: the general assignment of rents and the specific assignment of rents.

A general assignment of rents applies to all tenants who are living in the property, while a specific assignment of rents applies only to particular tenants. Both landlords and tenants must understand the differences between these two types of assignments.

The general assignment of rents is a document that allows mortgage lenders and banks to collect rent if the borrower fails to pay. This type of assignment applies to all tenants who are living on the property. Both the landlord and the tenant need to understand their rights and obligations under this agreement.

On the other hand, a specific assignment of rents is a document that allows mortgage lenders and banks to collect rent from particular tenants. This type of assignment applies only to those tenants who are specified in the agreement.

What Lawyers Can Do To Help

Image from Pixabay

 

Lawyers can help you review registered titles, complete the registration process, draft the assignment of rents documents, serve notices and collect payment of rent from delinquencies. They can also provide you with other legal services related to property management, such as protecting your rights as a tenant or a landlord and helping resolve disputes.

If you’re a renter, it’s important to have a lawyer review your lease agreement so that you know your tenant’s rights and obligations. Likewise, if you’re a landlord, it’s important to have a lawyer draft an assignment of rents agreement so that you can collect rent from your tenants.

For example, if you have any problems with your rental property, such as condominium units, mobile home sites, or houses, it’s important to have a lawyer by your side who can resolve the situation. Lawyers can provide legal advice, help the parties negotiate a dispute, and represent you in court as well.

 

Did you know?

The Residential Tenancies Act (RTA) Handbook of Alberta is valuable for tenants and landlords. It provides detailed information on all aspects of tenancy law in Alberta, including rights and responsibilities, mediation services, and enforcement measures. The RTA handbook is available online or in print form.

Let Us Help You With Your Assignment of Rents

Dealing with real estate involves many legal issues and technicalities that can be quite daunting to navigate. Whether you’re a tenant or a landlord, having an experienced lawyer facilitate the process is the greatest thing you can do. Hiring a lawyer saves you countless hours of reviewing documents and laws. Some law firms may even offer an online case evaluation, meaning you don’t have to leave the comfort of your own home. 

If you’re in Canada and are looking to get into real estate, having a seasoned real estate lawyer by your side is very important. One law firm that stands out from the rest is Diamond & Diamond Lawyers. They offer their services across various cities in Canada, such as Calgary, Edmonton, Vancouver, Toronto, Ottawa, and much more. Therefore, hiring a lawyer from Diamond & Diamond to handle real estate transactions is something your future self will thank you for.

Handling a case that involves an assignment of rent requires a deep understanding of laws in Alberta. Contact us if you have any questions or need legal advice.

 

FAQs on Assignment of Rents in Alberta

What is an assignment of the lease?

An assignment of lease is a document that allows a tenant to transfer their rights and responsibilities under a lease agreement to another person. This is very helpful if the original tenant can’t live in the property anymore because, for example, they’re moving out of the province or the country.

The assignee must satisfy all requirements the original tenant met, including being approved by the landlord. The assignor (the person transferring the lease) must also leave the property in good condition and continue to meet all of its obligations under the lease agreement.

If you’re interested in transferring your lease agreement to another person, consulting a lawyer is very important so that you understand the process and your rights and responsibilities.

How is it different from an assignment of rent?

The assignment of rents is a document that allows a landlord to collect rent from particular tenants in case of unpaid rent. This type of assignment applies only to those tenants specified in the agreement. 

On the other hand, the lease assignment is a document that allows a tenant to transfer their rights and responsibilities under a lease agreement to another person. This document can be helpful if the original tenant can’t continue to live in the rental property.

Moreover, not only does an assignment of lease apply to all tenants on the lease, it can also transfer a periodic tenancy to someone else. However, an assignment of rents does no such thing.

Is there a risk for the buyer who wants to purchase property with an assignment of rent?

Yes, there is. If the tenant assigned to pay rent doesn’t do so, the landlord can take legal action against the tenant. However, if the tenant assigned to pay rent doesn’t live in the property anymore, the landlord might not be able to collect rent from that tenant.

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