This assumption agreement template has 6 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our assumption agreement template:
ASSUMPTION AGREEMENT This Assumption Agreement (the "Agreement") is effective [DATE], BETWEEN: [NAME OF THE ORIGINAL BORROWER], (the "Original Borrower"), an individual with his main address located at OR a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [NAME OF THE NEW BORROWER], (the "New Borrower"), an individual with his main address located at OR a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [NAME OF THE LENDER], (the "New Lender"), an individual with his main address located at OR a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, the Original Borrower obtained a mortgage loan ("Loan") from [SPECIFY LENDER] (the "Lender"), which Loan is secured by the Property [DETAILS OF PROPERTY] ("Mortgaged Property"); WHEREAS, the Original Borrower executed a promissory note evidencing the Loan, dated [DATE], in the original principal amount of [PRINCIPAL AMOUNT], payable to the Lender ("Note"), and [SPECIFY AGREEMENT] ("Loan Agreement") further setting forth the terms of the Loan; WHEREAS, the Original Borrower has transferred or has agreed to transfer all of its right, title, and interest in and to the Mortgaged Property to the New Borrower, and the New Borrower has agreed to assume all of the Original Borrower's rights, obligations, and liabilities created or arising under certain of the Original Loan Agreements; NOW THEREFORE in consideration and as a condition of the Original Borrower, the New Borrower and Lender entering into this Agreement and other valuable considerations, the receipt and sufficiency of which consideration is acknowledged, the Parties agree as follows: ASSUMPTION OF OBLIGATION The New Borrower covenants, promises, and agrees that they will unconditionally assume and be bound by all terms, provisions, and covenants of the [SPECIFY LOAN AGREEMENTS] as if the New Borrower had been the original maker of the Note and Security Instrument. The New Borrower will pay all sums to be paid and perform each and every obligation to be paid or performed by the Original Borrower under and in accordance with the terms and conditions of the Note, Security Instrument, the Loan Agreement and all other Original Loan Agreements assumed by the New Borrower. Notwithstanding the foregoing, however, the New Borrower and the Lender will enter into an Amendment to the Loan Agreement to modify certain terms of the Loan Agreement. ASSUMPTION The New Borrower hereby assumes and agrees to pay all sums due or to become due or owing under the Note, the Security Deed and the other Loan Documents and shall hereafter faithfully perform all of the Original Borrower's obligations under and be bound by all of the provisions of the Loan Documents and assumes all liabilities of the Original Borrower under the Loan Documents as if the New Borrower were an original signatory thereto. The execution of this Assumption Agreement by the New Borrower shall be deemed its execution of the Note, the Security Deed and the other Loan Documents. RELEASE OF ORIGINAL BORROWER The Lender hereby releases on the Effective Date, the Original Borrower from liability under the Loan Documents, other than this Assumption Agreement. MODIFICATION OF [LOAN DOCUMENTS] The Parties in this Agreement agree that the provisions of the [SPECIFY THE LOAN DOCUMENTS AND AGREEMENTS] are modified as set forth in EXHIBIT A to this Assumption Agreement. The New Borrower will execute, acknowledge, and deliver such other documents as the Lender may require documenting the Assumption and to implement the provisions of this Agreement more fully. The failure of the New Borrower to comply with the additional obligations contained in this section will constitute an Event of Default under the Security Instrument, and the Lender will be entitled to exercise all remedies available to it under the terms of the Loan Documents. NEW GUARANTOR On the date of execution of this Agreement, the New Borrower will cause the New Guarantor to execute and deliver to the New Lender the current form of Guaranty ("Guaranty") under which the New Guarantor guarantees the full and punctual payment and performance, when due, of certain obligations of the New Borrower in connection with the Loan, as more fully set forth in the Guaranty. The Lender releases the Original Guarantor from all liability under the terms and provisions of the Original Guaranty. If the Lender's release of the Original Borrower is canceled in whole, the release of the Original Guarantor will be correspondingly canceled. EXPENSES
