What Is Assignment of Rents?
WHAT IS ASSIGNMENT OF RENTS?
If your property is a rental or income property, you might see an assignment of rents clause. The lender will register an assignment of rents on the title as insurance against a default.
You, Lawyer or Notary, will take care of this during your closing. The charge is registered against title allowing your lender to collect rent directly from a tenant your mortgage falls into default.