Whether you are selling or acquiring a practice, your office lease is just as critical as your patient records and equipment. A well-managed lease assignment ensures the incoming dentist can assume the practice seamlessly and preserves its full value.

Why It Matters

• A lease assignment transfers your lease to the purchaser so that they may continue practising at the same premises.
• Without landlord approval, financing or the completion of the transaction may be impossible.

Key Legal Points in Ontario

• Landlord consent is required, and in most cases, the consent is not to be unreasonably withheld.
• Most leases require formal written notice of an intended assignment, including purchaser details, with a response period often set at 15 to 30 days.
• A change of corporate control is treated as an assignment, requiring landlord consent.
• Personal guarantees often remain in effect after an assignment unless they are explicitly released, pre-negotiated, or addressed at the time of transfer. Failing to consider their ongoing impact can expose you to unexpected liabilities, reduce your borrowing capacity, and even lead to legal action if lease defaults occur following the sale of your practice.
• Where a landlord refuses consent unreasonably, the decision may be challenged through the courts.

Operational Guidance for a Smooth Transition

• Begin the process as soon as the agreement of purchase and sale has been signed.
• The vendor customarily approaches the landlord first; ensure communication is consistent and well-coordinated.
• Make the sale conditional upon obtaining landlord consent to protect both parties.
• Maintain continuity by notifying patients, transferring records in compliance with privacy legislation, and updating staff.
• Ensure compliance with regulatory obligations, including notifications to the College and amendments to corporate records and signage.

Completion Timeframe

• Lease review and preparation: one to two weeks.
• Submission of the landlord consent request: triggers a response period of 15 to 30 days.
• Landlord review and negotiations: two to four weeks.
• Finalisation of assignment: one to two weeks once consent is secured.

✅ A typical total timeframe is between six and ten weeks. Advance planning is essential to avoid delays at the completion stage.

Common Pitfalls to Avoid

• Approaching the landlord too late in the process.
• Providing vague or informal requests for consent.
• Failing to identify onerous lease provisions, such as assignment fees or restoration obligations.
• Assuming that consent will be given automatically.
• Overlooking the continuing effect of personal guarantees.

Conclusion
Lease assignments are a critical component of any dental practice transition. Careful preparation, timely action, and professional review are essential to safeguard your interests.

Call to Action
👉 If you are considering selling or acquiring a dental practice, contact us for a comprehensive lease review and guidance on the assignment process. We can help you protect your investment and ensure a smooth transition.

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