Exemptions allowing corporate restructurings or M&A without landlord consent.
By Angel Campa, Founder · Updated March 2026
Permitted transferee provisions allow routine corporate transactions (mergers, acquisitions, parent-subsidiary transfers) without triggering the consent requirement. Without this carve-out, a tenant undergoing a corporate merger must obtain landlord consent for every lease in its portfolio, creating deal-killing delays. For companies with dozens of locations, negotiating permitted transferee language is essential for operational flexibility.
In the "Assignment and Subletting" section, usually as a defined exception to the consent requirement. Look for "Permitted Transfers," "Exempt Transfers," or "Affiliate Transfers" provisions.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the permitted transferees from your lease PDF. The AI searches for 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.
Continuing Liability
Indicates if the original tenant remains financially liable post-assignment.
Common permitted transfers include: (1) assignments to affiliates or subsidiaries, (2) transfers resulting from mergers or consolidations, (3) transfers of controlling interests in the tenant entity, and (4) internal corporate restructurings. Landlords often require the successor to have equal or greater net worth.
Usually not. Most leases state that permitted transfers do not release the original tenant from its obligations. The original entity remains liable as a guarantor unless the lease explicitly provides for release upon a permitted transfer.
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