how does an assignment of rents work

Assignment of Rents – What, Why, and How?

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Madelaine prescott, esq., share this post:.

• November 29, 2023

These days, almost all commercial loans include an Assignment of Rents as part of the Deed of Trust or Mortgage. But what is an Assignment of Rents, why is this such an important tool, and how are they enforced?

An Assignment of Rents (“AOR”) is used to grant the lender on a transaction a security interest in existing and future leases, rents, issues, or profits generated by the secured property, including cash proceeds, in the event a borrower defaults on their loan. The lender can use the AOR to step in and directly collect rental payments made by the tenant. For an AOR to be effective, the lender’s interest must be perfected, which has a few fairly simple requirements. The AOR must be in writing, executed by the borrower, and recorded with the county where the property is located. Including an AOR in the recorded Deed of Trust or Mortgage is the easiest and most common way to ensure the AOR meets these requirements should it ever need to be utilized.

When a borrower defaults, lenders can take advantage of AORs as an alternative to foreclosure to recoup their investment. With a shorter timeline and significantly lower costs, it is certainly an attractive option for lenders looking to get defaulted borrowers back on track with payments, without the potential of having to take back a property and attempting to either manage it or sell it in hopes of getting your money back out of the property. AORs can be a quick and easy way for the lender to get profits generated by the property with the goal of bringing the borrower out of default. But lenders should carefully monitor how much is owed versus how much has been collected. If the AOR generates enough funds so that the borrower is no longer in default, the lender must stop collecting rents generated by the property.

Enforcement of an AOR can also incentivize borrowers to work with the lender to formulate a plan, as many borrowers rely on rental income to cover expenses related to the property or their businesses. Borrowers are generally more willing to come to the table and negotiate a mutual, amicable resolution with the lender in order to protect their own investment. A word of warning to lenders though: since rental income is frequently used to pay expenses on the property, such as the property manager, maintenance, taxes, and other expenses, the lender needs to ensure they do not unintentionally hurt the value of the property by letting these important expenses fall behind. This may hurt the lender’s investment as well, as the property value could suffer, liens could be placed on the property, or the property may fall into disrepair if not properly maintained. It is also important for lenders to be aware of the statutes surrounding the payment of these expenses when an AOR is being used, as some state’s statutes require the lender to pay certain property expenses out of the collected rents if requested by the borrower.

In addition to being shorter and cheaper than foreclosure, AORs can be much easier to enforce. In California, the enforcement of an AOR is governed by California Civil Code §2938. This statute specifies enforcement methods lenders can use and restrictions on use of these funds by the lender, among other things. Under CA Civil Code §2938(c), there are 4 ways to enforce an AOR:

• The appointment of a receiver;
• Obtaining possession of the rents, issues, profits;
• Delivery to tenant of a written demand for turnover of rents, issues, and profits in the correct form; or
• Delivery to assignor of a written demand for the rents, issues, or profits.

One or more of these methods can be used to enforce an AOR. First, a receiver can be appointed by the court, and granted specific powers related to the AOR such as managing the property and collecting rents. They can have additional powers though; it just depends on what the court orders. This is not the simplest or easiest option as it requires court involvement, but this is used to enforce an AOR, especially when borrowers or tenants are uncooperative. Next is obtaining possession of the rents, issues, profits, which is exactly as it seems; lenders can simply obtain actual possession of these and apply the funds to the loan under their AOR.

The third and fourth options each require delivery of a written demand to certain parties, directing them to pay rent to the lender instead of to the landlord. Once the demand is made, the tenant pays their rent directly to the lender, who then applies the funds to the defaulted loan. These are both great pre-litigation options, with advantages over the first two enforcement methods since actual possession can be difficult to obtain and courts move slowly with high costs to litigate. The written demands require a specific form to follow called the “Demand To Pay Rent to Party Other Than Landlord”, as found at CA Civil Code §2938(k). There are other notice requirements to be followed here, so it is essential to consult with an experienced attorney if you are considering either of these options. California Civil Code §2938 specifically provides that none of the four enforcement methods violate California’s One Action Rule nor the Anti-Deficiency Rule, so lenders can confidently enforce their AORs using the above methods with peace of mind that they are not violating other California laws.

Whether you are looking to originate a new loan, or you are facing a default by your borrower, understanding what an Assignment of Rents is and how it operates can be extremely beneficial. Enforcing an AOR can be an easier option than foreclosure and can help promote a good relationship with your borrower when handled correctly. If you have any questions about AORs, or need further details on how to enforce them, Geraci is here to help.

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• Estate Planning & Probate

Assignment of Rents & Leases

Assignment of rents and leases in business and real estate transactions.

An “Assignment of Rents and Leases” is a crucial legal instrument that significantly impacts commercial and residential real estate, and mergers and acquisitions of real estate. Having a properly drafted and executed assignment means the rights and assets that are transferred give the new party (the assignee) the right to receive payments.

What is an assignment of rents and leases?

An assignment of rents and leases is a legal agreement in which the individual or company entitled to receive payments transfers that right to another party. Most often, this occurs (1) when a property owner hires a property manager, or (2) in acquisitions, such as a property management company selling their accounts to another property management company or a commercial landlord selling their portfolio to a buyer.

How is an assignment of rents and leases used?

This arrangement is often utilized in business sales, account sales, financing, and investment transactions as a means of securing debt or protecting the interests of the lender or property owner.

In the financing context, an assignment often grants the lender or assignee the authority to collect and apply the rents from the property should the borrower default on their loan; this is important when the borrower collateralizes real estate in order to receive the loan. In a property management context, an assignment often serves to effectively transfer management rights to the new company.

An assignment of rents and leases is probably most commonly used in a commercial real estate context when there is a sale of a commercial property, or in the residential real estate context when there is a change in property managers.

What terms should be included in an assignment of rents and leases?

Certain components should be included in a proper assignment. Here are a few of the foundational terms for an assignment of rents and leases:

• Parties. All parties should be clearly identified and defined. This can include the borrower, lender, assignee, assignor, successor, etc.
• Property description. The real estate parcel(s) involved in the assignment should be described by legal description, street address, and more.
• Lease terms, rents, and disclosures. The actual lease agreements that are being transferred to the new landlord, property manager, lender, etc. should be provided to the assignor/successor, along with an easy-to-read schedule of rents and other crucial details per parcel or premises.
• Rights and obligations. Each party should have their rules, permissions, and contractual rights and obligations outlined in the assignment language. The rights and obligations of each stakeholder will be widely varied based on the needs and financial position of each party, the existing leases being assigned, and the specifics of the subject properties.

Best Commercial Real Estate Attorneys in Oklahoma

It is crucial to engage an attorney with experience in properly negotiating, drafting, and executing assignments of rents and leases. They can guide you through the process, ensuring that the assignment is tailored to your specific needs and complies with all relevant legal requirements. The attorneys of Avenue Legal Group have the experience you need and want in your transaction. Contact our firm to discuss your transaction, assignment of rents and leases, or other real estate documentation.

Looking for local counsel in Oklahoma for your commercial real estate transaction? Our firm frequently works with attorneys, investors, and lenders from outside the state. Contact us by call, text, email, or website submission to discuss your matter.

Other helpful information:

• Commercial Real Estate Transactions in Oklahoma
• Due Diligence in Oklahoma Real Estate Transactions
• Essential Terms for Every Commercial Lease
• Attorney for Real Estate Contract Review
• Estate Planning
• Real Estate and Investing

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• What is an assignment of rents?

by Brian D. Moreno, Esq., CCAL | General Real Estate Law , Homeowners Association

With the collection of assessments, community associations are always looking for creative ways to increase the chance of recovery.  One underutilized remedy that may provide associations good results is an assignment of rents.  If an owner-landlord fails to pay HOA assessments but continues to collect rent payments from his or her tenant, the association should consider rent assignment.  There are prejudgment and post-judgment rent assignment remedies that can be pursued with regard to the delinquency.  A post-judgment rent assignment can be pursued by way of a request to the court after a Judgment is entered against the owner-landlord.

A prejudgment rent assignment can be pursued even before filing a lawsuit if executed properly.  In California, Civil Code Section 2938 regulates the formation and enforcement of the assignment of rents and profits generated by a lease agreement relating to real property.  It provides that “[a] written assignment of an interest in leases, rents, issues, or profits of real property made in connection with an obligation secured by real property. . .shall, upon execution and delivery by the assignor, be effective to create a present security interest in existing and future leases, rents, issues, or profits of that real property. . . .”   Once a written assignment of rents is properly authorized and formed, the law creates a security interest (i.e., lien) against the rents and profits paid by a tenant. 

The question then is whether the association’s CC&Rs, by itself, creates an assignment of the right to a tenant’s rent payment in favor of the association.  Indeed, section 2938(b) provides that the assignment of an interest in leases or rent of real property may be recorded in the same manner as any other conveyance of an interest in real property, whether the assignment is in a separate document or part of a mortgage or deed of trust.  Since a homeowners association’s CC&Rs is a recorded document and contains covenants, equitable servitudes, easements, and other property interests against the development, it follows that the assignment of rents relief provided in Section 2938(b) can be extended to community associations provided the CC&Rs contains an appropriate assignment of rents provision.

Section 2938, however, does not clarify whether the CC&Rs document on its own creates a lien and enforceable assignment right.  Moreover, a deed of trust is much different than a set of CC&Rs, in that the deed of trust creates a lien against the trustor’s property upon recordation, while a homeowners association would not have a lien until an owner becomes delinquent with his or her assessments and the association records an assessment lien against the property.  Therefore, depending on the scope of the assignment of rents provision in the CC&Rs, a homeowners association would likely need to record an assessment lien first before pursuing rents from a tenant.  Moreover, even after a lien is recorded, homeowners associations should consider adding a provision in the assessment lien giving notice to the delinquent owner that an assignment right is in effect upon recordation of the assessment lien.  Nevertheless, association Boards should consult with legal counsel to ensure proper compliance with the law.

Once the assignment right becomes enforceable, the next issue is how the Association can and should proceed.  Section 2938(c)(3) allows the association to serve a pre-lawsuit demand (a sample of which is included in the statute) on the tenant(s), demanding that the tenant(s) turn over all rent payments to the association.  This can be a powerful tool for homeowners associations.  Moreover, if the tenant complies, the association will receive substantial monthly payments that can be applied towards the assessment debt, and collecting the funds does not appear to preclude the association from pursuing judicial or non-judicial foreclosure proceedings at a later time.

While homeowner associations have the option of pursuing a lawsuit against the delinquent owner and seeking to collect the rent payments after a judgment has been obtained, there are obvious advantages to enforcing the assignment of rents provision prior to pursuing litigation.  A pre-lawsuit assignment of rents demand may prove to be more effective and cheaper.  Additionally, the tenant affected by the assignment of rents demand may place additional pressures on the delinquent owner/landlord having received such a demand.  Given this, the options available pursuant to Section 2938, including the pre-lawsuit demand for rents, should at least be considered and analyzed before action is taken.

Truly, the initial pre-lawsuit demand for rents may persuade the landlord-owner to resolve the delinquency with the association in the face of the potential disturbance of the landlord-tenant relationship.  Even if the tenant fails to comply with the demand and/or the owner fails to bring the account current, the association could nonetheless pursue foreclosure remedies and/or seek to have a receiver appointed to specifically enforce the assignment of rents provision.

In sum, if a delinquent homeowner is leasing the property to a tenant, the homeowners association should consider making a pre-lawsuit demand for rent payments.  If the association’s CC&Rs does not contain an assignment of rents provision, the board of directors should consider amending the CC&Rs to include an appropriate provision.  Without question, the pre-lawsuit demand for rents could provide an excellent opportunity for recovery of unpaid assessments during these difficult economic times.

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Understanding the Purpose and Process of Assignment of Rents

Almost all commercial loans nowadays include an Assignment of Rents (AOR) as part of the Deed of Trust or Mortgage. This tool has become increasingly vital in the mortgage industry due to its role in granting the lender a security measure. So, what exactly is an AOR, why is it so significant, and how is it enforced?

An Assignment of Rents is a legal document used to provide lenders with an additional layer of security in commercial transactions. Through an AOR, the borrower assigns the right to collect rental income from a property to the lender, should there be a default on the loan. This mechanism safeguards the lender’s ability to recover their investment by allowing them to step in and collect rents directly from tenants in case of non-payment.

Enforcement of an AOR typically involves notifying tenants of the assignment, redirecting rental payments to the lender, and taking legal action if necessary to ensure compliance. The lender diligently monitors the property’s cash flow to protect their interests, especially when there is a risk of default. Overall, Assignment of Rents has proven to be an indispensable tool for lenders, granting them added security in commercial lending transactions.

Key points:

– Assignment of Rents (AOR) is included in most commercial loans. – AOR grants the lender the right to collect rental income in case of loan default. – It provides an extra layer of security for the lender. – Enforcement involves tenant notification, redirecting rental payments, and potential legal action. – AOR is crucial for protecting lenders’ interests in commercial lending.

You can read this full article at: https://geracilawfirm.com/assignment-of-rents-what-why-and-how/ (subscription required)

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• What is an Assignment of Rents?

WHAT IS AN ASSIGNMENT OF RENTS?

An assignment of rent is a binding contract between a lender and a borrower stipulating that in the event the borrower defaults on the mortgage, the lender will be entitled to collect any rent payments made by a tenant occupying the property. If the lender is aware that the borrower intends to use the mortgaged property as a rental property, the lender may include an assignment of rents clause in the mortgage agreement to further protect its interest. A lender may choose to enter a general assignment of rents or a specific assignment of rents.

In a general assignment of rents, the agreement is binding on all future leases. A specific assignment of rents is only binding on the specific parties listed in the agreement. In the context of a real estate transaction, an assignment of rents, whether general or specific, may be registered on title. An assignment of rent may also be registered under the Personal Property Security Act as a secured interest. An assignment of rents is typically only deleted from the title when the corresponding mortgage is discharged and paid in full.

Contact us if you require legal assistance with your real estate transaction. Our real estate law team has the experience and knowledge to assist you throughout every step of the transaction.

Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.

About the Author:

Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here .

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Assignment of Lease: How It Works and Parties Involved

Jump to section, what is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

• Under a sublease, the original lease agreement still remains in place.
• The original tenant retains all responsibilities under a sublease agreement.
• A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
• Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
• Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
• The third-party in a sublease agreement does not have a direct relationship with the landlord.
• The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

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Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

Do you have any questions about a lease assignment and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from real estate lawyers who specialize in lease assignment.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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Former AGC and first in-house counsel at publicly traded tech company. 10+ years of experience in commercial contracts across multiple areas including tech, events, licensing, procurement, marketing, sponsorships, professional services and others.

Jennifer B.

Highly accomplished Corporate Counsel with a proven track record of success. Skilled in contract negotiation, risk management, and regulatory compliance, with expertise in drafting and negotiating agreements in SaaS sales and distribution, data processing, and privacy.

Business-focused attorney with a proven track record of providing comprehensive organizational support in a fast-paced setting under increasingly tighter deadlines. With experience in not just Legal, but also in Sales and Finance, balancing corporate interests against risk exposure to produce the ideal organizational solution – i.e., “seeing the big picture” – comes naturally. Exceptional communicator who thrives at building trusted relationships both internally & externally, as well as distilling complex legal concepts into more easily digestible ideas. Highly adept negotiator with an extensive understanding of a wide variety of contractual arrangements (Purchasing, Leasing, SaaS, ISAs, BAAs, DPAs, NDAs, etc.), and a working knowledge of major domestic and global data privacy laws. Passionate about sports, entertainment, and people.

I have extensive experience in all aspects of real estate development and ownerships, from small leases to multimillion-dollar, nationwide projects. Career includes 25+ years as a law firm partner and head of real estate practices in two highly regarded New York law firms, as well as Special Counsel to a prominent, New York based and family owned real estate company. Experience includes representation of corporations and individuals - including artists, performers and athletes-in any of non real estate matters, such as contract negotiations with agents and auction houses.

Atim is an international business lawyer licensed in New York and Texas. She advises businesses on smart and fit-for purpose legal and business solutions to achieve their strategic objectives. Equipped with strong legal, regulatory compliance, tax advisory, as well as contract drafting skills, she serves clients internationally at the intersection of law, finance and technology across industry verticals.

Licensed to practice Law in Illinois since 2009. Family Law and Real Estate Law Attorney.

I am a business, Internet, and intellectual property lawyer. My practice is split between both transactional work and litigation. Prior to law school, I earned a master’s degree in computer science, which gives me the background and experience to understand technology, software, and the Internet better than most attorneys, and so my practice focuses on these areas. However, I represent clients in almost any industry, including real estate, construction, medicine, service, and consumer products.

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Assignment of Lease

Contract to lease land from a church?

I’m planning on leasing land from a church. Putting a gym on the property. And leasing it back to the school.

Ok; first step is that you will need a leasing contract with the church. Ask them to prepare one for you so you would just need an attorney to review the agreement and that should cost less than if you had to be the party to pay a lawyer to draft it from scratch. You need to ensure that the purpose of the lease is clearly stated - that you plan to put a gym on the land so that there are no issues if the church leadership changes. Step 2 - you will need a lease agreement with the school that your leasing it do (hopefully one that is similar to the original one your received from the church). Again, please ensure that all the terms that you discuss and agree to are in the document; including length of time, price and how to resolve disputes if you have one. I hope this is helpful. If you would like me to assist you further, you can contact me on Contracts Counsel and we can discuss a fee for my services. Regards, Donya Ramsay (Gordon)

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REAL ESTATE LAW

What is a deed of trust with assignment of rents.

By Rebecca K. McDowell, J.D.

February 24, 2020

Reviewed by Michelle Seidel, B.Sc., LL.B., MBA

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• What Is a Corporate Assignment of Deed of Trust?

A deed of trust is a written instrument granting a lien on real property. While slightly different from a mortgage, they are functionally nearly the same. Some states use deeds of trust instead of mortgages while others allow both. Either way, a deed of trust used to secure a commercial loan may also include an assignment of rents , which gives the lender the right to collect rental income from the property in the event of default.

What Is a Deed of Trust?

A ​ deed of trust ​ is a document that a borrower may execute in favor of a lender to give the lender a lien on a parcel of real estate. Like a mortgage, a deed of trust secures the loan by allowing the lender to foreclose on the real estate if the loan isn't paid (although in some states that use deeds of trust, a foreclosure isn't necessary).

​ Read More: ​ How to Research a Deed of Trust

Deed of Trust vs. Mortgage

A deed of trust is very similar to a mortgage in that it pledges property to secure a loan. A mortgage, however, is simpler; the property owner executes a mortgage document in favor of the lender, and the lender records the mortgage and has a lien , but the property owner still holds title to the property.

A deed of trust, on the other hand, grants an actual ownership interest in the property to a trustee, who holds the property in trust for the lender until the obligation is paid.

What Is an Assignment of Rents?

An ​ assignment of rents ​ is extra security granted to a lender that provides a commercial loan. Commercial loans are loans that are not made for family or household use but for business purposes.

When a borrower grants a mortgage or deed of trust on real estate and the real estate has tenants who pay rent, the lender can demand an assignment of rents in addition to the mortgage or deed of trust.

The assignment of rents means that if the borrower defaults on the loan, the lender can step in and collect the rents directly from the tenants.

Deed of Trust With Assignment of Rents

A deed of trust may contain an assignment of rents clause for that same property. In addition to a clause in the deed of trust, the lender may also require the borrower to execute a separate document called an "Assignment of Rents" that is recorded with the register of deeds.

Whether the assignment is written in the deed of trust only or is also contained in a separate document, it is binding on the borrower as long as its language is clear and sufficient to create an assignment under state law.

Exercising an Assignment of Rents

When a lender decides to collect the rents on the borrower's property, the lender is said to be exercising the assignment of rents. The lender cannot exercise the assignment unless the borrower has defaulted on the loan. Once that happens, the lender can send a written demand to the tenant or tenants, requiring that the rents be paid directly to the lender.

Absolute Assignments of Rents

An assignment of rents most likely will contain language that the assignment is an ​ absolute assignment ​. In most states, an absolute assignment gives the lender an immediate interest in the rents. This means that the lender actually owns the rents and is simply allowing the borrower to collect them on license until an event of default. Once a default occurs, the lender can intercept the rents without taking any court action; a letter to the tenants is all that's needed.

Every state's laws are different; the law of the state where the property is located will dictate how a lender can exercise an assignment of rents.

​ Read More: ​ What Is the Difference Between a Deed and a Deed of Trust?

• Companies Incorporated: Mortgage States and Deed of Trust States
• American Bar Association: Commercial Real Estate FAQs
• Schulte Roth & Zabel: Sixth Circuit Upholds Assignment of Rents to Secured Lender
• Findlaw: California Civil Code - CIV § 2938
• Legal Beagle: What Is the Difference Between a Deed and a Deed of Trust?
• Legal Beagle: How to Research a Deed of Trust
• Legal Beagle: Documents Needed to Refinance a Mortgage
• Legal Beagle: How to File a Property Lien

Rebecca K. McDowell is a creditors' rights attorney with a special focus on bankruptcy and insolvency. She has a B.A. in English from Albion College and a J.D. from Wayne State University Law School. She has written legal articles for Nolo and the Bankruptcy Site.

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What Is an Assignment of Leases and How Can a Real Estate Lawyer Help?

• LANDLORD AND TENANT LAW GUIDE
• » Lease Agreements and Negotiations
• » Laws Governing Everyday Living Disputes
• » Landlord's Legal Obligations for Maintenance and Repair
• » Eviction and Lease Termination
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• ⇒ How A Lawyer Can Help with Landlord and Tenant Disagreements

Assigning a Lease

Assignments explained, more information on assignments.

What’s an Assignment of Rents?

A lender may ask you to sign an assignment of rents agreement, but what is this? Should you agree to this?

In this piece, we give you a quick overview into what an assignment of rents is whether you should agree to this.

What is an Assignment of Rents?

An assignment of rents reserves the lender the right to collect rent payments (if being rented out) when a borrower defaults on their loan payments. The lender using certain clauses can also take over the lease and dealing with the tenant. However, both the borrower and lender must agree to this.

The assignment of rents is registered on the property alongside the mortgage/loan. This means that once the mortgage is discharged from the property, so is the assignment of rents.

General vs Specific Assignment of Rents

There are two main types of assignments of rents, general and specific. A general assignment of rents allows for the creditor to collect rent but not under a specific lease. This assignment therefore applies to all present and future rental income/leases.

On the other hand, a specific assignment of rents applies to leases that are specifically listed in the document. If any of the specific/listed leases expire or are terminated, the specific assignment of leases will not apply to any new lease/sublease.

In most situations, the lender will prefer a general assignment of rents as it is a more comprehensive additional security.

Signing an assignment of rents is standard practice for rental properties and protects the lender if you default. If you’re interested in what an assignment of rents agreement looks like, click here to see an example of an Assignment of Rents from the Land Registry of Ontario.

If you have any questions on the assignment of rents, feel free to contact our office at 905 787 2296 or [email protected] .

Navigating the assignment of a residential lease

A landlord can assign his leases to a new buyer of his building. Likewise, a tenant may be able to assign his lease if he needs to relocate. Find out how to assign your lease and what you can do to protect yourself when doing so.

by   Ronna L. DeLoe, Esq.

Ronna L. DeLoe is a freelance writer and a published author who has written hundreds of legal articles. She does...

Read more...

Updated on: December 4, 2023 · 3 min read

Assignment of lease by the tenant

Assignment of lease vs. sublease, assignment of lease by the landlord.

As a tenant, you may want to get out of your residential lease without paying the remaining rent. Likewise, if you're a landlord and sell your rental property, the buyer must now collect rent from the tenants, who may have no idea you sold the property. In both situations, assignment of a lease with a release for the tenant and assignment of leases with notice by the landlord accomplish these goals.

If you're the tenant and want to leave before the end of your lease term, you may be able to assign your lease to a third party if the landlord doesn't let you out of the lease. The third party then becomes the new tenant, who is bound by the terms of the original lease and pays rent to the landlord.

Most often, the lease won't permit assignment without the landlord's approval, but leases often state that the landlord cannot unreasonably withhold consent. As long as you produce a tenant who's shown a history of payment under prior leases and has been a model tenant, a landlord should consent to assignment.

The assignment of lease form should include places for the tenant-assignor, the new tenant-assignee, and the landlord to sign. If the master lease allows assignment, then the tenant doesn't need the landlord's permission; the tenant can sign an assignment of lease agreement without the landlord's signature.

If the landlord allows an assignment of the lease, you, as the tenant, also want him to sign a release stating that you're not responsible for the new tenant's failure to pay or for any damage she causes. Without such a release, you may still be liable for both.

When you, as the tenant, assign the lease, you sign an agreement that either reads “Assignment of Lease," “Lease Assumption Agreement," or “Assignment and Assumption Agreement." An assumption of the lease means that the new tenant assumes your obligations, such as paying rent and keeping the apartment in good condition.

An assignment of a lease transfers the tenant's entire rights in the property to a third party. With a sublease, on the other hand, the tenant transfers only a portion of the remaining lease. For example, if the original tenant has six months remaining on his lease and he gives the entire six months to a third party, the tenant is permanently assigning his rights to live on the property to the third party. If, however, the tenant allows that third party to stay at the premises for only three months, and the tenant intends to return after three months, he is subleasing the premises.

A landlord can assign the right to collect rent to someone who has purchased the property. An assignment of lease from the seller to the buyer allows the new landlord to collect rent from any and all current tenants in the building. The language in the landlord's assignment of lease agreement can include assignment of security deposits, if the parties agree to it. An assignment of leases by the landlord to the buyer affords protection to the buyer so he can collect rent.

An assignment of leases by the landlord to the buyer is meaningless if tenants aren't aware the landlord sold the property, which is why it's important for the assignor-landlord to give tenants proper notice. A notice of assignment of lease, which is a form signed by both the assignor-landlord and the assignee, or new landlord, is one way to give notice. Another way is to send a letter on the landlord's letterhead. Either way, the notice must include the new landlord's address and how rent is to be paid.

Both landlords and tenants who become assignors should sign a formal assignment of lease agreement, which an online service provider can prepare for you. If you're the tenant who has assigned your lease, try to get a release or you'll still be liable to the landlord. If you're the landlord, make sure you can count on the new tenant to pay the rent before you release the primary tenant from his obligations under the lease.

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Demystifying Assignment of Lease: Your Go-To Guide

LegalGPS : July 25, 2024 at 12:20 PM

When you’re talking about property leasing, it’s important to understand that there are a lot of terms and concepts that you may have never heard before. One of them is the assignment of lease, which refers to a situation where a tenant transfers their rights and responsibilities under the lease agreement to another party.

Assignment of Lease Template

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What is an Assignment of Lease, and why is it so crucial?

An Assignment of Lease is a term you may have heard thrown around, especially if you're involved in rental properties. It’s a pretty important document. But what exactly is it? Well, in simple terms, an Assignment of Lease is an agreement where the original tenant of a property transfers their leases and all of its rights and obligations to a new tenant. Now, you might be wondering, "When would this scenario ever occur?"

Let's imagine you're a tenant who signed a three-year lease for an office space. However, two years in, you need to relocate due to unprecedented growth of your business. Instead of breaking the lease, you might choose to assign your lease to another business looking for office space. This means that you, as the original tenant, no longer have any obligations under the lease. The new tenant is now responsible for paying rent and complying with all of the terms of the previously signed agreement.

Now that you understand, let's get into the step-to-step guide on how to create an Assignment of Lease!

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Steps to Write an Assignment of Lease

Creating a thorough Assignment of Lease agreement doesn't need to be an overwhelming task. Simply follow these steps to ensure your agreement is both comprehensive and legally binding:

Step 1: Identify the Parties

The information of each party should be included. For the existing tenant (the assignor), make sure to include:

Full legal name or business name

Postal mailing address

Phone number and email address

Do the same for the new tenant (the assignee). Make sure all the information is up-to-date and accurate to avoid any unnecessary confusion or disputes. For example, if the assignor is a business, make sure they have updated their mailing address with the post office to reflect their new building location. If a party has multiple addresses, be sure to list them all.

Step 2: Specify the Lease

This section requires exact information from the original lease agreement, including:

Property address and description

Lease start and end date

A reference to the original lease agreement (for instance, a sentence like "the lease agreement dated...")

Remember to include a copy of the original lease as an attachment to ensure the assignee understands the terms they're adhering to. If not already included in the original lease agreement, be sure to add the following information: Description of rental property, Lease term (how long the lease is good for), Rent amount, and Security deposit amount.

Step 3: Detail the Assignment

State that the assignor is transferring all their interests and obligations in the lease to the assignee. Here, write something like:

"The Assignor hereby assigns, transfers, and conveys to the Assignee all of the Assignor's rights, title, and interest in and to the Lease, together with all the Assignor's obligations, liabilities, and duties under the Lease."

This means that the assignor is transferring all of their interests and obligations in the lease to the assignee. This includes any future rent payments, repairs and maintenance responsibilities, notices of default by either party, and so on.

Step 4: Landlord's Consent

Many leases require the landlord's consent to assign the lease. The assignor should request written consent from the landlord and include a clause like:

"The assignment of the lease is not valid unless and until the landlord provides written consent."

This is followed by a place for the landlord to affirm consent by signing or initialing. This is important because the landlord can elect to withhold consent and the assignment will not be valid. If this is the case, you may need to provide additional consideration for your landlord's assent (for example, an increase in rent).

Step 5: Assignee Acceptance

Include a statement in which the new tenant agrees to the assignment and the terms of the lease. It may look like:

"The Assignee hereby accepts this assignment, assumes all duties and responsibilities under the Lease, and agrees to perform all of the Assignor's obligations under the Lease."

You need to do this because the new tenant needs to have an affirmative acceptance of the assignment in order for it to be valid. This is typically done through a letter from the assignee stating that they agree to perform all of your obligations under the lease.

Get Your Assignment of Lease Template with a Legal GPS Subscription

Step 6: Signature and Date

Every binding legal document needs a date and a signature. Make sure that there is a proper place for the assignor and the assignee to sign and print their names, with a line for the date.

By following these clear, actionable steps, you'll be able to construct an effective Assignment of Lease agreement. Remember, every situation is unique, so adjust the template as necessary, being sure to include all relevant details.

Clear so far? Great! Now, let's focus on the tips to draft a perfect Assignment of Lease.

Tips to Draft a Perfect Assignment of Lease

Accurate Dates: Be sure to include the date when this agreement will take effect. Precision avoids any confusion about durations, when the assignee takes over, or when the assignor's obligations end.

Clear Terms: This document should restate the terms of the original lease. The assignee needs a clear understanding of what they're stepping into. Bit ambiguous? Think of it like this: the assignee should be able to step into the assignor's shoes comfortably.

Specify Rent Terms: Stating the rent amount, due dates, and method of payment in the assignment helps create a record of the agreed-upon rent terms, ensuring no misunderstanding arises in the future.

Specify the Term: The assignment should state how long the new lease lasts. For example, if the original lease is for one year, then the assignee will assume only a one-year term.

Specify Other Conditions: If there are other conditions in place—such as tenant improvements or utility allowances—then specify these too.

An assignment of lease doesn't have to be a formidable task to overcome. With a cautious and considered approach, these documents can be a smooth and seamless part of managing a successful lease transition.

Our contract templates can offer you even more support, empowering you towards crafting an excellent and individualized Assignment of Lease ready for your task. So why not take your next step towards leasing success and check them out today? Click here to get started!

Get Legal GPS's Assignment of Lease Template Now

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Assignment of Rents

What you need to know about Assignment of Rents and Leases

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Properly Enforcing an Assignment of Rents

Reading Time: 5 minutes

In Florida, lenders typically obtain an “assignment of rents” if the property produces income by collecting rent, such as an apartment complex, rental home, rental space, or office building. An “assignment of rents” allows the lender to collect the rent payments, if the borrower defaults on their loan payments. Although the lender and borrower may agree to the assignment of rents in the loan documents, the procedure for enforcing the assignment of rent is governed by   Section 697.07, Florida Statutes .

The Assignment of Rents Should be Recorded

If a lender and borrower agree to the assignment of rents as security for repayment of debt in a mortgage document, the lender will hold a lien on the rent payments.  However, to perfect its rents lien against third parties, the lender must record the mortgage in the public records of the county in which the real property is located. Fla. Stat. § 697.07 (2).

How Can a Lender Enforce the Assignment of Rents?

Section 697.07 provides two methods for the lender to enforce the assignment of rent: (i) the actual assignment of rent to the lender, and (ii) the sequestration of rents into the court registry. Wane v. U.S. Bank, Nat’l Ass’n , 128 So. 3d 932, 934 (Fla. 2d DCA 2013) (“Section 697.07 draws a clear line between a motion seeking sequestration of rents into the court registry [under subsection (4)] and a motion seeking an actual assignment of rents to the lender pending foreclosure [under subsection (3)].”).

(i) Actual Assignment of Rent to the Lender

The first method, the actual assignment of rent to the lender, is provided in Section 697.07 (3). If the borrower defaults on the loan, the lender can make a written demand to the borrower to turn over “all rents in possession or control of the [borrower] at the time of the written demand or collected thereafter,” minus any expenses authorized by the lender in writing. Fla. Stat. § 697.07 (3). If the borrower does not turn over rent payments after the lender has made a written demand, the lender may foreclose on the rents lien and collect rent payments, without having to foreclose on the underlying mortgage. Ginsberg v. Lennar Fla. Holdings, Inc. , 645 So. 2d 490, 498 (Fla. 3d DCA 1994) (“[A]n assignment of rent creates a lien on the rents in favor of the mortgagee, and the mortgagee will have the right to foreclose that lien and collect the rents, without the necessity of foreclosing on the underlying mortgage.”).

To receive a court order for the actual assignment of rent, the lender will have to prove that there was a default, and that it made a written demand to the borrower to turn over rent payment. Wane , 128 So. 3d at 934. Additionally, an evidentiary hearing will be required.

(ii) Sequestration of Rent Into the Court Registry

The second method, the sequestration of rent into the court registry, is provided in Section 697.07 (4). This method can only be used if there is a pending mortgage foreclosure lawsuit. Unlike the first method, the lender does not have to prove that there was a default or make a written demand, and an evidentiary hearing is not required.

Either the borrower or lender may make a motion to the court for sequestration of rent into the court registry. Upon such a motion, a court, pending final judgment of foreclosure, may require the borrower to deposit the collected rents into the court, or in such other depository as the court may designate. The court must hear the motion on an expedited basis, and the moving party will only be required to show that there is a pending foreclosure lawsuit, and that there is a provision in the loan documents for the assignment of rent. Wane , 128 So. 3d at 934.

Moreover, a borrower cannot avoid sequestration of rents by raising defenses or counterclaims. Id. ; Fla. Stat. § 697.07 (4). In addition, the borrower will be required to submit records of receipt of rent to the court and lender, typically on a monthly basis throughout the lawsuit. The rents will remain in the court registry until conclusion of the foreclosure action.

To properly enforce the assignment of rents, the first thing lenders should do is record the assignment of rents in the public records of the county in which the real property is located. In the event the borrower defaults on their loan, the lender will have two options to enforce the assignment of rents: the actual assignment of rent to the lender (Section 697.07 (3)), or the sequestration of rents into the court registry (Section 697.07 (4)). If the lender is seeking the actual assignment of rent, the lender must send a written demand to the borrower to turn over the rent payments and provide proof of default. On the other hand, the lender may seek sequestration without proof of default or written demand. Showing the existence of an assignment of rents provision in the loan documents is sufficient to obtain sequestration of rents into the court registry.

• Austin B. Calhoun, Esq.
• Melissa G. Murrin, JD Candidate

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A banker asked us: General vs specific assignments of rents and leases in Ontario

Q: What is the difference between a general assignment of rents and leases and a specific assignment of rents and leases, and when should I include them in my term sheet for a commercial real estate financing of an Ontario property?

A: In situations where a borrower owns real property in Ontario that either is or will be leased to third party tenants, a lender should consider obtaining either a general assignment of rents and leases or a specific assignment of rents and leases in addition to a mortgage on the secured property. Like a mortgage, an assignment of rents and leases should be registered against title to the subject property, and in addition, should be registered under the applicable personal property security legislation as the rents and leases that are being secured by the assignment fall within the definition of personal property under that legislation. [1]

An assignment of rents and leases, be it a general assignment of rents and leases or a specific assignment of rents and leases, provides a lender with two principal benefits which may be realized by the lender after an event of default:

• it permits the lender to receive the rent payments that the borrower/landlord would otherwise be entitled to, and this revenue stream from the tenants is a significant asset that should be secured; and,
• it permits the lender to step into the shoes of the borrower/landlord and exercise all of the rights and remedies available to the landlord to ensure that the full benefit and value of the lease is realized by the lender, which includes for example, the right to demand payment in the event of non-payment of rent by a tenant and to assign the lease to a purchaser in the event of a power of sale proceeding.

The only difference between a general assignment of rents and leases and a specific assignment of rents and leases is the revenue streams and leases to which they apply. A general assignment of rents and leases applies to all present and future rental income and leases in respect of a particular property. Once in place, a general assignment of rents and leases gives the lender a right to the rental income and the ability to exercise all of the rights of the landlord under a lease in respect of all leases of the property, including but not limited to any new leases, subleases or assignments of lease entered into after the assignment is granted and registered. In contrast to this, a specific assignment of rents and leases only applies to leases which are specifically listed in the document. In the event that any of the specifically listed leases expire or are terminated, and/or a new lease or sublease is put in place, the specific assignment of leases will not apply to this new lease or sublease and the lender will have no right to the rental income or rights resulting from the new lease or sublease.

In most lending situations, the lender will prefer a general assignment of rents and leases as it provides the most comprehensive security. The lender will have security over all rental income, and be able to exercise the rights of the landlord, regardless of who the tenants are in the future, or what leases the borrower has in place at the time of default under the terms of the loan or credit facility. However, where there is a principal or anchor tenant that represents a preponderance of the rental income, and/or the borrower objects to a general assignment of rents and leases securing all rents and leases as too broad a security interest, the lender may only be interested in securing the rental income and landlord rights associated with a specific principal or anchor lease, or a particular group of leases. In such a situation, a specific assignment of rents and leases may be a reasonable compromise position for a lender to adopt. Alternatively, in situations where multiple lenders are taking security in a particular parcel of real property, specific assignments of rents and leases allow the various lenders to divide the rental income and leases among themselves, with each lender only obtaining security in a specifically agreed upon lease or group of leases.

The above is a general overview of general and specific assignments of rents and leases. The professionals in Gowling WLG (Canada) LLP’s financial services practice group would be pleased to discuss your lending and real property security needs in greater detail, and help you chose the security documents most appropriate for your lending needs.

[1] Some financial institutions have chosen to incorporate into their Standard Charge Terms for their mortgages various provisions that serve as a general assignment of rents, and they do not register a separate general assignment of rents as a result.

NOT LEGAL ADVICE. Information made available on this website in any form is for information purposes only. It is not, and should not be taken as, legal advice. You should not rely on, or take or fail to take any action based upon this information. Never disregard professional legal advice or delay in seeking legal advice because of something you have read on this website. Gowling WLG professionals will be pleased to discuss resolutions to specific legal concerns you may have.

Money blog: Oasis resale U-turn as official reseller lowers fee amid criticism

The Money blog is your place for consumer and personal finance news and tips. Today's posts include Twickets lowering fees for Oasis tickets, the extension of the Household Support Fund and O2 Priority axing free Greggs. Listen to a Daily podcast on the Oasis ticket troubles as you scroll.

Monday 2 September 2024 17:40, UK

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Twickets has announced it is lowering its charges after some Oasis fans had to pay more than £100 in extra fees to buy official resale tickets.

The site is where the band themselves is directing people to buy second-hand tickets for face value - having warned people against unofficial third party sellers like StubHub and Viagogo.

One person branded the extra fees "ridiculous" (see more in 10.10 post), after many people had already been left disappointed at the weekend when Ticketmaster's dynamic pricing pushed tickets up by three times the original advertised fee.

Twickets said earlier that it typically charged a fee of 10-15% of the face value of the tickets.

But it has since said it will lower the charge due to "exceptional demand" from Oasis fans - taking ownership of an issue in a way fans will hope others follow. 

Richard Davies, Twickets founder, told the Money blog: "Due to the exceptional demand for the Oasis tour in 2025, Twickets have taken the decision to lower our booking fee to 10% and a 1% transactional fee (to cover bank charges) for all buyers of their tickets on our platform. In addition we have introduced a fee cap of £25 per ticket for these shows. Sellers of tickets already sell free of any Twickets charge.

"This ensures that Twickets remains hugely competitive against the secondary market, including sites such as Viagogo, Gigsberg and StubHub.

"Not only do these platforms inflate ticket prices way beyond their original face value but they also charge excessive booking fees, usually in the region of 30-40%. Twickets by comparison charges an average fee of around 12.5%"

The fee cap, which the Money blog understands is being implemented today, will apply to anyone who has already bought resale tickets through the site.

Mr Davies said Twickets was a "fan first" resale site and a "safe and affordable place" for people to trade unwanted tickets.

"The face value of a ticket is the total amount it was first purchased for, including any booking fee. Twickets does not set the face value price, that is determined by the event and the original ticketing company. The price listed on our platform is set by the seller, however no one is permitted to sell above the face-value on Twickets, and every ticket is checked before listing that it complies with this policy," he said.

Meanwhile, hundreds of people have complained to the regulator about how Oasis tickets were advertised ahead of going on sale. 

The Advertising Standards Authority said it had received 450 complaints about Ticketmaster adverts for the gigs.

Some  expressed their anger on social media , as tickets worth £148 were being sold for £355 on the site within hours of release, due to the "dynamic pricing" systems.

A spokesperson from ASA said the complainants argue that the adverts made "misleading claims about availability and pricing".

They added: "We're carefully assessing these complaints and, as such, can't comment any further at this time.

"To emphasise, we are not currently investigating these ads."

Ticketmaster said it does not set prices and its website says this is down to the "event organiser" who "has priced these tickets according to their market value".

After a long Saturday for millions of Oasis fans in online queues, the culture secretary says surge pricing - which pushed the price of some tickets up by three times their original advertised value to nearly £400 - will be part of the government's review of the ticket market. 

On today's episode of the Daily podcast, host Niall Paterson speaks to secondary ticketing site Viagogo. While it wasn’t part of dynamic pricing, it has offered resale tickets for thousands of pounds since Saturday. 

Matt Drew from the company accepts the industry needs a full review, while Adam Webb, from the campaign group FanFair Alliance, explains the changes it would like to see.

We've covered the fallout of the Oasis sale extensively in the Money blog today - see the culture secretary's comments on the "utterly depressing" inflated pricing in our post at 6.37am, and Twickets, the official Oasis resale site, slammed by angry fans for its "ridiculous" added fees at 10.10am.

The growing backlash culminated in action from Twickets - the company said it would lower its charges after some fans had to pay more than £100 in extra fees for resale tickets (see post at 15.47).

Tap here to follow the Daily podcast - 20 minutes on the biggest stories every day

Last week we reported that employers will have to offer flexible working hours - including a four-day week - to all workers under new government plans.

To receive their full pay, employees would still have to work their full hours but compressed into a shorter working week - something some workplaces already do.

Currently, employees can request flexible hours as soon as they start at a company but employers are not legally obliged to agree.

The Labour government now wants to make it so employers have to offer flexible hours from day one, except where it is "not reasonably feasible".

You can read more of the details in this report by our politics team:

But what does the public think about this? We asked our followers on LinkedIn to give their thoughts in an unofficial poll.

It revealed that the overwhelming majority of people support the idea to compress the normal week's hours into fewer days - some 83% of followers said they'd choose this option over a standard five-day week.

But despite the poll showing a clear preference for a compressed week, our followers appeared divided in the comments.

"There's going to be a huge brain-drain as people move away from companies who refuse to adapt with the times and implement a 4 working week. This will be a HUGE carrot for many orgs," said Paul Burrows, principal software solutions manager at Reality Capture.

Louise McCudden, head of external affairs at MSI Reproductive Choices, said she wasn't surprised at the amount of people choosing longer hours over fewer days as "a lot of people" are working extra hours on a regular basis anyway.

But illustrator and administrative professional Leslie McGregor noted the plan wouldn't be possible in "quite a few industries and quite a few roles, especially jobs that are customer centric and require 'round the clock service' and are heavily reliant upon people in trades, maintenance, supply and transport". 

"Very wishful thinking," she said.

Paul Williamson had a similar view. He said: "I'd love to know how any customer first service business is going to manage this."

We reported earlier that anyone with O2 Priority will have their free weekly Greggs treats replaced by £1 monthly Greggs treats - see 6.21am post.

But did you know there are loads of other ways to get food from the nation's most popular takeaway for free or at a discount?

Downloading the Greggs app is a good place to start - as the bakery lists freebies, discounts and special offers there regularly. 

New users also get rewards just for signing up, so it's worth checking out. 

And there's a digital loyalty card which you can add virtual "stamps" to with each purchase to unlock discounts or other freebies.  

Vodafone rewards

Seriously begrudged Virgin Media O2 customers may want to consider switching providers. 

The Vodafone Rewards app, VeryMe, sometimes gives away free Greggs coffees, sausage rolls, sweet treats and more to customers.

Monzo bank account holders can grab a sausage roll (regular or vegan), regular sized hot drink, doughnut or muffin every week. 

Birthday cake

Again, you'll need the Greggs award app for this one - which will allow you to claim one free cupcake, cream cake or doughnut for your birthday each year.

Octopus customers

Octopus Energy customers with smart meters can claim one free drink each week, in-store from Greggs (or Caffè Nero).

The Greggs freebie must be a regular size hot drink.

Make new friends

If you're outgoing (and hungry), it may be worth befriending a Greggs staff member.

The staff discount at Greggs is 50% on own-produced goods and 25% off branded products. 

If you aren't already aware, Iceland offers four Greggs sausage rolls in a multi-pack for £3. 

That means, if you're happy to bake it yourself, you'll only be paying 74p per sausage roll. 

Millions of Britons could receive extra cash to help with the cost of living this winter after the government extended the Household Support Fund.

A £421m pot will be given to local councils in England to distribute, while £79m will go to the devolved administrations.

The fund will now be available until April 2025 having been due to run out this autumn.

Councils decide how to dish out their share of the fund but it's often via cash grants or vouchers.

Many councils also use the cash to work with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes and items to improve energy efficiency in the home.

Chancellor Rachel Reeves said: "The £22bn blackhole inherited from the previous governments means we have to take tough decisions to fix the foundations of our economy.

"But extending the Household Support Fund is the right thing to do - provide targeted support for those who need it most as we head into the winter months."

The government has been criticised for withdrawing universal winter fuel payments for pensioners of up to £300 this winter - with people now needing to be in receipt of certain means-tested benefits to qualify.

People should contact their local council for details on how to apply for the Household Support Fund - they can find their council  here .

Lloyds Bank app appears to have gone down for many, with users unable to see their transactions. 

Down Detector, which monitors site outages, has seen more than 600 reports this morning.

It appears to be affecting online banking as well as the app.

There have been some suggestions the apparent issue could be due to an update.

Another disgruntled user said: "Absolutely disgusting!! I have an important payment to make and my banking is down. There was no warning given prior to this? Is it a regular maintenance? Impossible to get hold of someone to find out."

A Lloyds Bank spokesperson told Sky News: "We know some of our customers are having issues viewing their recent transactions and our app may be running slower than usual.

"We're sorry about this and we're working to have everything back to normal soon."

We had anger of unofficial resale prices, then Ticketmaster's dynamic pricing - and now fees on the official resale website are causing consternation among Oasis fans.

The band has encouraged anyone wanting resale tickets to buy them at face value from Ticketmaster or Twickets - after some appeared for £6,000 or more on other sites.

"Tickets appearing on other secondary ticketing sites are either counterfeit or will be cancelled by the promoters," Oasis said.

With that in mind, fans flocked to buy resale tickets from the sites mentioned above - only to find further fees are being added on. 

Mainly Oasis, a fan page, shared one image showing a Twickets fee for two tickets as high as £138.74. 

"Selling the in demand tickets completely goes against the whole point of their company too… never mind adding a ridiculous fee on top of that," the page shared. 

Fan Brad Mains shared a photo showing two tickets priced at £337.50 each (face value of around £150, but increased due to dynamic pricing on Saturday) - supplemented by a £101.24 Twickets fee. 

That left him with a grand total of £776.24 to pay for two tickets.

"Actually ridiculous this," he  said on X .

"Ticketmaster inflated price then sold for 'face value' on Twickets with a £100 fee. 2 x £150 face value tickets for £776, [this] should be illegal," he added. 

Twickets typically charges between 10-15% of the ticket value as its own fee. 

We have approached the company for comment.

Separately, the government is now looking at the practice of dynamic pricing - and we've had a response to that from the Competition and Markets Authority this morning.

It said: "We want fans to get a fair deal when they go to buy tickets on the secondary market and have already taken action against major resale websites to ensure consumer law is being followed properly. 

"But we think more protections are needed for consumers here, so it is positive that the government wants to address this. We now look forward to working with them to get the best outcomes for fans and fair-playing businesses."

Consumer protection law does not ban dynamic pricing and it is a widely used practice. However, the law also states that businesses should not mislead consumers about the price they must pay for a product, either by providing false or deceptive information or by leaving out important information or providing it too late.

By James Sillars , business reporter

It's a false start to the end of the summer holidays in the City.

While London is mostly back at work, trading is fairly subdued due to the US Labor (that's labour, as in work) Day holiday.

US markets will not open again until Tuesday.

There's little direction across Europe with the FTSE 100 trading nine points down at 8,365.

Leading the gainers was Rightmove - up 24%. The property search website is the subject of a possible cash and shares takeover offer by Australian rival REA.

The company is a division of Rupert Murdoch's News Corp.

One other point to note is the continuing fluctuation in oil prices.

Brent crude is 0.7% down at the start of the week at $76.

Dragging the cost lower is further evidence of weaker demand in China.

Australia's REA Group is considering a takeover of Rightmove, in a deal which could be worth about £4.36bn.

REA Group said in a statement this morning there are "clear similarities" between the companies, which have "highly aligned cultural values".

Rightmove is the UK's largest online property portal, while REA is Australia's largest property website. 

It employs more than 2,800 people and is majority-owned by Rupert Murdoch's News Corp,.

REA Group said: "REA sees a transformational opportunity to apply its globally leading capabilities and expertise to enhance customer and consumer value across the combined portfolio, and to create a global and diversified digital property company, with number one positions in Australia and the UK.

"There can be no certainty that an offer will be made, nor as to the terms on which any offer may be made."

Rightmove has been approached for comment.

A major lender has announced it will allow first-time buyers to borrow up to five-and-a-half times their income in a bid to help more people onto the property ladder.

Lloyds says it has increased its max loan-to-income ratio from 4.49 as the situation is "tough right now" for first-time house hunters.

It means buyers with a household income of £50,000 and a 10% deposit may be able to borrow £275,000 - up from £224,500 at the previous rate.

To qualify, borrowers have to apply for a first-time buyer mortgage with Lloyds or sister bank Halifax, have a total household income of at least £50,000 and a minimum 10% deposit, and not be using shared ownership or shared equity schemes. Normal affordability checks also apply.

Andrew Asaam, homes director at Lloyds Banking Group, said: "Getting the keys to a first home is a big deal, but it's tough right now.

"Aspiring homeowners have been struggling with house prices rising faster than their wages. They need to save for a deposit, keep up with rent, and choose the right mortgage."

Meanwhile, the National Association of Estate Agents' Propertymark president Toby Leek said it was "encouraging" to see banks offering more help to first-time buyers.

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