An assignment transfers the entire remaining interest while a sublease transfers less, retaining a reversion. Leases typically require landlord consent, which may be subject to a reasonableness standard.
The original tenant generally remains liable absent a release.
Alternative Names:
Assignment and Sublease|Transfer Provisions
Why it Matters?
Continuing liability after assignment surprises tenants who assume the transfer ended their obligation, since privity of contract survives absent an express release from the landlord. Obtaining that release is the point of the negotiation rather than obtaining consent. Where consent must be reasonable, a landlord's refusal based on the assignee's creditworthiness is generally reasonable while refusal to extract higher rent frequently is not.
Frequently Confused with
Related terms
Frequently asked questions
Does assignment end the tenant's liability?
What refusals are unreasonable?
