Assignment and Assumption
Gridlync land and infrastructure glossary.
An assignment and assumption agreement transfers one party’s rights and obligations under a lease or easement to another party, who assumes them. It is how agreements move when assets or portfolios change hands. The assignor transfers its rights and the assignee takes on the obligations, and many leases require the landowner’s consent or notice before an assignment is valid. It is the mechanism by which leases and easements move during an acquisition or divestiture.
Acquisitions and divestitures move many agreements at once. Gridlync keeps a clean record of which agreements transferred and their current holder.
Example
When Crestline Energy sells its solar portfolio to Aurora Power, the two sign an assignment and assumption agreement transferring 42 ground leases, so Aurora steps into Crestline’s shoes and starts paying rent to landowners like the Castillo family.