Assignment of Rents Agreement Template
This Assignment of Rents Agreement is made on [Date] by and between:
Assignor / Borrower: [Full Name / Company Name]
Address: [Address]
Assignee / Lender: [Full Name / Company Name]
Address: [Address]
This Agreement applies to the following property:
Property Address: [Property Address]
City, State, ZIP Code: [City, State, ZIP Code]
Legal Description, if applicable:
[Insert legal description]
This Assignment of Rents is given in connection with the following loan, note, mortgage, deed of trust, or other obligation:
Loan or Obligation Description: [Describe]
Original Principal Amount: [$Amount]
Note Date: [Date]
Maturity Date, if applicable: [Date]
3. Assignment of Rents
As security for the payment and performance of the obligations described above, the Assignor assigns to the Assignee all right, title, and interest in and to the following:
☐ rents
☐ issues and profits
☐ lease payments
☐ occupancy charges
☐ tenant recoveries
☐ other income from the property: [Describe]
This assignment applies to present and future rents and income arising from the property, subject to the terms of this Agreement and applicable law.
4. Leases Covered
This Agreement applies to the following leases or occupancy arrangements affecting the property:
[Describe existing leases, tenants, or write “all present and future leases and occupancy agreements”]
5. Nature of Assignment
This Assignment is intended to be:
☐ additional security for the loan or obligation
☐ an absolute present assignment subject to the Assignor’s limited right to collect until default
☐ otherwise as follows: [Describe]
If not otherwise stated, the parties intend that this Assignment support the Assignee’s collateral rights in the rents arising from the property.
6. Assignor Right to Collect Before Default
Until an event of default occurs and subject to the terms of this Agreement, the Assignor may collect and use rents in the ordinary course consistent with the related loan documents.
The Assignor shall apply collected rents as follows:
[Describe permitted use, operating expenses, debt service, reserves, or other use]
7. Events of Default
The Assignee may enforce this Assignment upon the occurrence of any of the following:
☐ payment default under the related note or loan
☐ breach of mortgage, deed of trust, or security document
☐ failure to perform under this Agreement
☐ insolvency, receivership, or bankruptcy event
☐ unauthorized lease action or misuse of rents
☐ other default: [Describe]
8. Assignee Rights After Default
After default, the Assignee may, to the extent allowed by law and the loan documents:
collect rents directly from tenants;
notify tenants to pay the Assignee;
demand delivery of rent records and lease information;
apply rents to the debt, costs, expenses, reserves, or property obligations;
seek appointment of a receiver;
exercise any additional rights available under the loan documents or applicable law.
Additional enforcement terms, if any:
[Insert details]
9. Tenant Notice
Upon request of the Assignee or upon default, the Assignor shall cooperate in providing notice to tenants regarding payment of rents.
Notice terms:
☐ tenants may continue paying Assignor until written notice from Assignee
☐ tenants must pay Assignee after notice of default
☐ other: [Describe]
10. Assignor Covenants
The Assignor agrees that, without the Assignee’s consent if required under the related loan documents, the Assignor will not:
materially amend, cancel, or terminate leases;
accept prepaid rent beyond ordinary course limits;
waive material tenant defaults;
assign leases or rents to another party;
take action that materially impairs the Assignee’s rights in the rents.
Additional covenants, if any:
11. Application of Rents
Rents collected by the Assignee may be applied in the following order, unless otherwise required by law:
[property protection costs]
[taxes and insurance]
[operating expenses]
[interest and principal due]
[fees and enforcement costs]
[other amounts secured]
Additional application terms:
12. Records and Access
The Assignor shall maintain accurate records relating to leases, tenants, and rent collections and shall provide copies to the Assignee upon reasonable request.
The Assignee may inspect such records as permitted by the related loan documents and applicable law.
13. No Release of Other Security
This Agreement is intended to supplement, and not replace, any mortgage, deed of trust, security agreement, guaranty, or other collateral document related to the same debt or obligation.
The Assignee may enforce this Agreement together with or separately from other available remedies.
14. Governing Law
This Agreement shall be governed by the laws of the state of [State].
15. Entire Agreement
This Agreement contains the full understanding between the parties regarding the assignment of rents described above and replaces prior discussions on that subject unless otherwise stated in writing.
16. Signatures
Assignor / Borrower Signature: __________________________
Name: [Full Name]
Title: [Title, if applicable]
Date: [Date]
Assignee / Lender Signature: __________________________
Name: [Full Name]
Title: [Title, if applicable]
Date: [Date]
17. Notary Acknowledgment
State of [State]
County of [County]
On this [Day] of [Month], [Year], before me, the undersigned notary public, personally appeared [Name of Signer(s)], known to me or satisfactorily proven to be the person(s) whose name(s) are subscribed to this instrument, and acknowledged that they executed the same for the purposes stated herein.
Notary Public Signature: __________________________
Name: [Notary Name]
My Commission Expires: [Date]
