ASSIGNMENTS OF RENTS, LEASES AND PROFITS

Assignment of Rents, Leases, and Profits Lawyers in Orlando, Florida 

If you are lending money to an investor looking to rent, lease, or profit from a real estate property, you may want to ensure that your mortgage contract contains a clause for assignment of rents, leases, and profits. Furthermore, if you are considering lending money to a small business or start-up, you might want to consider how you’ll protect your rights and lower your risk with collateral. One way that lenders to small businesses protect their rights is by requiring businesses to use their rental properties as collateral. With an assignment of rents, leases, and profits clause in your loan agreement, you as a lender may have more rights should a borrower default on a loan. Legal Counsel, PA employs an assignment of rents, leases, and profits lawyer in Orlando, Florida who can assist you with your mortgage contract needs and work to include all the clauses you might need in your contract to protect your rights. Our firm works with private lenders in Orlando, Florida to help them meet their business and lending needs.

When you lend money to an investor, business, or individual so that they can purchase a rental property, one of the rights you might want to protect is your right to collect rents, leases, and profits related to the property directly should the borrower default on the loan. By protecting your right to collect rent, leases, and profits on the property directly, you increase your protections against loss and can lower the risk of the loan you are making. If the borrower defaults, you, as the lender, might be entitled to collect rent money or collect profits related to the property directly from tenants. If you are a private lender considering loaning money to another party for rental property, having the right clauses in your mortgage contract is important. The assignment of rents, leases, and profits lawyer in Orlando, Florida may be able to help you.  Have questions?  We have answers. Contact Legal Counsel, PA at 407.982.4321.

Collecting Rents, Leases, and Profits in Orlando, Florida When a Borrower Defaults

If a borrower defaults on his or her mortgage, you may be entitled to collect rents directly from the borrower’s tenants. How can you do this? If a borrower has defaulted on his or her obligations, you can get a notice of default. This notice must be filed with the court so that you can take legal action. The borrower may have the right to go to court to dispute the default, but if the borrower fails to prove that they have not defaulted, or if they do not appear on their court date, the lender can then present the notice of default along with the assignment of rents, leases, and profits to tenants, and collect this money directly from them. If you need to make a claim for rents, leases, and profits in Orlando, Florida, it is important to protect your rights. Legal Counsel, PA employs an assignment of rents, leases, and profits lawyer in Orlando, Florida who can assist you with your claims and protect your rights in court should a borrower default on a loan.

However, in order to collect rents, leases, and profits on a rental property when a mortgage borrower or business borrower defaults, it is important to have the right loan contract in place. In order to be able to assert this right, you must have included the proper language into your loan contract, and have executed and recorded these documents. Legal Counsel, PA employs an assignment of rents, leases, and profits lawyer in Orlando, Florida who can help you with drafting an assignment, rents and leases agreement.  Have questions?  We have answers. Contact Legal Counsel, PA at 407.982.4321.

What is Required in an Assignment of Rents Leases, and Profits Agreement? 

In order for a borrower to be able to assert his or her rights with an assignment of rents, leases, and profits agreement in Orlando, Florida, the agreement must be properly written, properly executed, and recorded. This means that the assignment of rents, leases, and profits agreement should make reference to the specific promissory note it will protect, and that it includes a clear legal description of the rental property that will serve as collateral under the assignment. The document must be signed and notarized and recorded in the public records of the Clerk of the Circuit Court in which the property is located. Other issues can arise with an assignment of rents, leases, and profits agreements. For example, the title must be clear for the assignment to be valid (there must be no other mortgage or claim on the property). So, you may want to perform a title search before letting a lender use rental property as collateral. Legal Counsel, PA employs a rents, leases, and profits lawyer in Orlando, Florida who can assist you with your loan contracts and help you address any questions that might arise when businesses or property buyers use rental property as collateral.  Have questions?  We have answers. Contact Legal Counsel, PA at 407.982.4321.

Assignment of Rents, Leases, and Profits for Business Loans 

Private lenders who loan money to small businesses or start-ups may ask for collateral on loans. Because new businesses may not always have equity or capital, business owners may put up their own property as collateral. One type of property that may serve as collateral are rental properties. One way that a lender can protect their rights is by having an assignment of rents, leases, and profits agreement that allows the lender to collect rent money directly from the borrower’s tenants if the borrower defaults on the loan. Having an assignment of rents, leases, and profits agreement on your property can secure the loan and lower the lender’s risk. When it comes to small business loans, it is important to understand your risk and protect your rights. If you have questions about how an assignment of rents, leases, and profits agreement can impact your small business, impact your rental property, or protect your rights as a private lender, contact Legal Counsel, PA, a law firm that employs an assignment of rents, leases, and profits clause lawyer in Orlando, Florida today.  Have questions?  We have answers. Contact Legal Counsel, PA at 407.982.4321.

 

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Legal Counsel P.A. is a Central Florida based law firm providing legal services to both individuals and business throughout the State of Florida. Have questions? We have answers. Contact Legal Counsel, P.A. today at (407) 982-4321.

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  • Main Office

    13330 W. Colonial Drive, #110 Winter Garden, FL 34787

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    189 S. Orange Avenue, Ste. 1800 Orlando, FL 32801 (by appointment only)

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