Last week we kicked off our series about the most important lease clauses to understand. We talked about lease exclusivity clauses and how they can be greatly beneficial to your dental practice. This week, we’re looking at assignments and assumptions. If you’re thinking about selling your practice, or are in the process currently, read on.
What is an assignment/assumption clause?
An assignment/assumption clause is when a tenant has the right to assign the lease to another business entity and remove any financial obligation or risk to the landlord. Generally, landlords will agree to allow this with a certain amount of other conditions.
Why is this important to dentists?
When a dentist is looking to sell their practice and there is a remaining obligation on their lease, it is important to have a strong assignment/assumption clause in the lease to allow any easy transfer of the lease obligations to the entity buying your practice. This clause can protect your potential buyer and you from jumping through hoops with the landlord to allow for an assumption of the lease obligations.
If you would like to learn more about assignment and assumption clauses or general dental lease information, contact me at 612.373.0281.
Look for lease clause #3 from the top 5 lease clauses to know for dental leases next week!