Sublease and Assignments Flashcards
Can a tenant assign or sublease?
Unless the lease specifically prohibits it, the tenant may assign or sublease their non-freehold possessory interest to a 3rd party
Why does the law allow assignments and subleasing?
The law favors alienability and transferability
The law disfavors restraints and interprets exceptions narrowly and strictly
What happens if there is a specific prohibition and no explicit permission and the tenant violates?
The assignment becomes VOIDABLE, not void.
Can a landlord withhold consent?
Landlord cannot withhold consent for any reason
Can a landlord withhold consent?
Common Law
Landlord cannot withhold consent to assign unreasonably (can’t collect from either T or T1) but CAN withhold consent to sublet reasonably (Can only collect unpaid rent of T1 from T)
Assignment
Majority View
T assigns T1 entire interest – this is the full string of time (T1 gets entire remaining lease term, interpreted as an assignment, (NOT a sublease)
If a tenant transfers the right to possess to 3rd party for entire string of time, then it is an assignment
Sublease
Majority View
If tenant transfers only part of remaining term and keeps part of the time for himself, this is a sublease