Assignment of Rents | Canada
Canadian lenders, secure the repayment of a mortgage loan by having the borrower execute this Assignment of Rents Agreement.
- The borrower assigns to the lender all rent revenues from tenants in the property being mortgaged.
- The assignment is given as security for repayment of the mortgage and performance of the borrower's obligations to the lender.
- The rentals continue to be paid to the borrower / assignor until such time as the lender / assignee gives a demand in writing to the tenants to pay the rents to the assignee.
- The agreement stays in effective until all of the monies due under the mortgage have been paid in full.
An Assignment of Rents Agreement is a good means of obtaining additional security for performance under a loan agreement. You can download it immediately following purchase.
Last Updated: 18-July-2018