Novation To Existing Agreement

General Real Estate Investing
1

When you acquire a new IP with an existing lessee with an existing lease agreement, can the lessor provide a novation of the lease agreement with new clauses on the agreement?

For instance, there are 20 clauses/terms in the agreement and the lessor wants to add 5 more critical terms to the agreement with the existing tenant.

Would the lessor’s broker/firm compose a newly composed agreement with the same terms (such as monthly lease, # of years leased, and other essential terms) and add the new terms to the agreement?

Thank you in advance.

2

I would guess it depends on the terms of the leasing contract. My lease document says:

“The owners may adopt other rules and regulations at a later time provided they have legitimate purpose, not modify the tenants rights substantially, and not become effective without notice of at least two weeks.”

BTW - your use of the terms “lessor” and “lessee” might be confusing, especially to newer investors…I recommend the use of “landlord/tenant”…it’s easier to visualize mentally… :slight_smile:
Keith

Keith