EXPLANATORY NOTES FOR THE CESSION OF THE RIGHTS, TITLE AND INTEREST IN AND TO A LEASE AGREEMENT
A cession of the rights, title and interest in and to a lease agreement is a security undertaking that is generally utilised where one entity (for example a bank) (“the Lender“) lends and advances money (“the Loan“) to another entity (“the Borrower“), or which may in future lend and advance money to such Borrower. By concluding this cession document, the Borrower agrees to transfer to the Lender, its rights, title and interest to the lease agreement in the event of default. This enables the Lender to step into the shoes of the Borrower as far as the lease is concerned. It is always prudent to obtain the lessor’s consent to the cession and to also procure that the lessor signs a landlord’s waiver of hypothec (also for sale on this site).
This cession document can be printed onto 4 A4 pages. (In the interests of the environment, it is suggested that the agreement rather be printed back to back on 2 pages).
Please read carefully through the cession document and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding cession document.
Constructive feedback concerning this cession document can be emailed to info@sitllegal.co.za.
