Transfer of Leaseholds - Property

Assignment

Transfer by a tenant of their whole interest in a lease, i.e. the entire remaining term of the lease

Sublease

Transfer by a tenant of a part of the interest in a lease, i.e. an amount with right to some portion of remaining term

Landlord Consent

Landlords can require that tenants obtain prior written consent for both subleases and assignments if provided in the lease. Once a landlord consents to a transfer once, they waive for future transfers unless they expressly reserve the right.

Assignment Privities

1. Privity of Estate: assignee and landlord
2. Privity of Contract: OG tenant and landlord

Assignment Covenants

Assignee owes rent directly to landlord. Failure to pay allows landlord to sue either assignee or OG tenant.

Sublease privities

Privities only between landlord and OG tenant. OG tenant can in turn pursue sublessee for failure to pay rent

Landlord remedy, sublease

Landlord can terminate main lease for nonpayment of rent

Sublessee rights

Sublessees can enforce no covenants except for the warranty of habitability.

Landlord Assignment

Landlords can assign the right to rent and the reversion interests in the property without tenant consent.

Assignee rights against tenants

Tenants must recognize and pay rent to the new owners.

Assignee liabilities to tenants

Assignee liable for covenants that concern the land. OG landlord also remains liable for all covenants within the lease.