Assignment and Sublease Flashcards
• Assignment –
transfer entirety of lease
o Can still have right of reentry
• Sublease –
transfer less than entirety of lease
o Can still have right of reentry
o Covenant to surrender possession to original tenant at the end of the sub tenant’s term
• Privity of estate and implied covenant of rent –
LL has cause of action against assignee but not sublessee
o Privity of estate: present estate/future interest relationship
• Jaber v. Miller – AR (1951)
o F: O to Jaber for 5 years w/ fire clause; 4 years in, Jaber to Norber (w/ condition subsequent reserving right to terminate); Norber to Miller (P here) with no fire clause; building burns down while P in possession; D still charges for promissory notes
P argues that sublease ends when original lease ends and argues that the notes are rent (would go away if sublease)
o Case is important because it looks to the intent of the parties (minority view) in determining if assignment or subleaseContract between J and N was “Contract and Assignment”
o Here, said assignment – Ct. follows
Under assignment, promissory notes were just the purchase price
Assignment implies lease is fully transferred so P gets no relief
Assignment occurred when he took the interest; all of the promissory notes immediately become due
Tenancies and Licensing:
• License to occupy; revocable for any reason generally (think hotel)
• Periodic tenancy – operates that the lease can be renewed or terminated with the passage of designated period of time
o Most common – month to month; don’t have the security or the drawbacks of the year-long lease
o Generally either party can terminate with one unit of notice
o “self-renewing” lease
•Tenancy at will –
just a form of license; either party can terminate the tenancy at any time
o Normally with the license, it’s the landowner alone who can terminate the relationship
•Tenancy at sufferance –
when the tenant doesn’t leave after the term of the lease expires
o Legal status of the party on the premises after the lease expires – trespasser
o Could give landlord right to renew the lease; or treat as tenant at sufferance and can be charged double/triple the normal rent