Leasehold Transfers

Question 1

Assignment

Answer 1

Tenant transfers her entire interest

Question 2

Sublease

Answer 2

Tenant transfers less than entire interest

Question 3

Privity of Estate

Answer 3

Refers to mutual, immediate, and simultaneous interest in the property; rooted in possession

Question 4

Privity of Contract

Answer 4

Contract law label for the relationship between two parties who are in a contract

Question 5

Assignment Liability

Answer 5

Landlord can collect rent from tenant (privity of

contract) OR transferee (T1) [privity of estate]

Question 6

Assignment Privity relationship w/ Original Tenant

Answer 6

Landlord & Tenant share Privity of Contract but NOT Privity of Estate

Question 7

Assignment Privity relationship w/ Assignee

Answer 7

Landlord & transferee (T1) share Privity of Estate

but this relationship ends if assignee tenant transfers interest to a subsequent tenant

Question 8

Sublease Liability

Answer 8

Landlord can ONLY collect rent from original tenant

Question 9

Sublease Privity relationship w/ Original Tenant

Answer 9

Landlord and Tenant share Privity of Contract & Privity of Estate

Question 10

Sublease Privity relationship w/ Sublessee

Answer 10

Landlord and Sublessee share NO relationship but original tenant and sublessee have Privity of Contract

Question 11

Restrictions on leasehold transfers

Answer 11

If lease is silent, can transfer freely w/o permission;

if lease requires permission, landlord can only refuse for commercially reasonable reason