Indicates if the original tenant remains financially liable post-assignment.
Also known as: Ongoing Guaranty
By Angel Campa, Founder · Updated March 2026
Continuing liability means the original tenant remains on the hook for rent and damages even after assigning the lease to a new party. If the assignee defaults, the landlord can pursue the original tenant for the full remaining obligation. On a 10-year lease with 7 years remaining at $20,000/month, continuing liability represents $1.68 million in potential exposure. Tenants should negotiate a release of liability upon assignment to a creditworthy successor.
In the "Assignment and Subletting" section, typically stating that "no assignment shall release Tenant from its obligations." May also be addressed in the landlord's consent letter when an actual assignment occurs.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the continuing liability from your lease PDF. The AI searches for the field name and common aliases like "Ongoing Guaranty" across all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
Consent Required
Indicates if landlord approval is necessary for a transfer of the leasehold.
Consent Standard
The legal standard governing the landlord's right to refuse a transfer request.
Profit Sharing %
The portion of sublease profits payable to the landlord.
Recapture Right
The landlord's right to terminate the lease and take back the space upon a transfer request.
Permitted Transferees
Exemptions allowing corporate restructurings or M&A without landlord consent.
Yes, most commercial leases include continuing liability as a default provision. The original tenant remains liable unless explicitly released in writing. This is a heavily negotiated point, particularly for corporate tenants undergoing M&A transactions who want a clean break from legacy obligations.
Tenants can negotiate a release contingent on the assignee meeting minimum creditworthiness standards (e.g., net worth exceeding a specified threshold). Alternatively, tenants may negotiate a time-limited guarantee that expires 12-24 months after the assignment if no default occurs.
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