Document background
A Lease Novation Agreement is a crucial legal instrument used when there needs to be a change in the parties to an existing lease while maintaining the lease's core terms. This document, governed by Philippine law and particularly Articles 1292-1304 of the Civil Code of the Philippines regarding novation, is commonly used in situations such as business acquisitions, property sales, or when either a lessor or lessee needs to transfer their rights and obligations to another party. The agreement must comply with local property laws and registration requirements, particularly if the lease involves real property. The document typically includes detailed provisions about the transfer of rights and obligations, handling of security deposits, outstanding liabilities, and necessary representations and warranties from all parties involved.
