What Is An Assumption Agreement?
An assumption agreement means a document that an obligation is assumed by an obligor, debtor or another party. This is considered to be the binding contract and its right and interest should be assumed by the original obligor. At first, this document seems to be very complicated, but you can use our assumption agreement templates. We have tons of assumption agreement samples you can download for free on this page.
In short, the assumption agreement is a document that states about the contract of mortgage, loan, and other obligations. This also applies to other contracts such as the shareholder and interconnection agreement. This agreement should contain clear terms and conditions and should be easily understood by everyone.
Types Of Assignment and Assumption Agreement Templates
Our website provides you a huge number of agreement templates that you can use for certain purposes. Generally, the agreement templates contain similar styles and formats. It is just different like the contract. You can find certain agreements that suit your needs, such as:
- Mortgage Assumption Agreement Template – There are some reasons why the mortgages can be assumed because both parties need to understand the contract contents. These templates can be used if you are planning to assume a mortgage.
- Loan Assumption Contract Sample – This is a sample about the loan assumption that also can be used for a loan, so if you want to assume this, you can use this template. However, you need to seek for the lender consent and then use the outline to make the assumption agreement.
How To Make An Assumption Agreement?
Note that the terms of assumption agreement vary according to its type. However, you still can follow the following format:
- Introduction – This talks about the assumption contract by identifying the parties which consist of assignee and assignor. Never make a mystery in writing the contract so you can avoid misunderstanding.
- Recitals – This part states the rights of the parties which should be emphasized.
- Assignment and Assumption provisions – Both parties which in this case are the assignor and assignee should state their consent and also their desire which is bound by the contract.
- Inconsistency Provision – Just in case there is an original provision that the assumption agreement against the original provisions, then the latter one will prevail.
- Indemnification provision – This agreement states the payment that should be done by the assignor before the agreement prevail.
If you are not dealing with complicated documents, using the assumption agreement templates will be much better because this helps you to agree quickly with the formal format while still can make a good draft. Generally, this should include the following information:
- Identification – This included the date, parties’ rights and the parties that are involved.
- The effective date
- The identification – The statement of their desires and also their identification of why they assign it.
- Identification of the third party who will accept the assignment
- The identification of the initial party
- Terms and conditions