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Assignment of Rent

Definition of "Assignment of Rent"

An Assignment of Rent is a document needed when a mortgaged property is being rented. It enables the lender to collect the rent if the mortgage is defaulted upon.

What is an Assignment of Rent:

The document protects the lender mainly since without it the owner might continue to collect revenues even after having stopped making the mortgage payments.

In some cases the Assignment of Rent is a full document while in other cases it is just a clause of the mortgage contract. It becomes null and void when the full amount of debt is paid to the lender or when the lease period is over. The Assignment of Rent is more common in the case of commercial properties than residential properties.

Disclaimer:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.