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The document discusses the differences between an assignment and a sublease in a lease agreement. An assignment transfers the tenant's entire interest in the lease to the assignee, placing them in privity of estate with the landlord. This means the assignee takes on the obligations that run with the estate, most importantly the obligation to pay rent. A sublease only transfers partial interest to the subtenant, so they are only liable to the tenant and have no privity with the landlord or obligations to them. The key issue is determining whether a transfer is an assignment or sublease based on how much interest is retained by the tenant.
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Emanuel Law Outlines for Property Keyed to Dukeminier, Krier, Alexander, Schill, Strahilevitz_nodrm (Dragged) 16
The document discusses the differences between an assignment and a sublease in a lease agreement. An assignment transfers the tenant's entire interest in the lease to the assignee, placing them in privity of estate with the landlord. This means the assignee takes on the obligations that run with the estate, most importantly the obligation to pay rent. A sublease only transfers partial interest to the subtenant, so they are only liable to the tenant and have no privity with the landlord or obligations to them. The key issue is determining whether a transfer is an assignment or sublease based on how much interest is retained by the tenant.
The document discusses the differences between an assignment and a sublease in a lease agreement. An assignment transfers the tenant's entire interest in the lease to the assignee, placing them in privity of estate with the landlord. This means the assignee takes on the obligations that run with the estate, most importantly the obligation to pay rent. A sublease only transfers partial interest to the subtenant, so they are only liable to the tenant and have no privity with the landlord or obligations to them. The key issue is determining whether a transfer is an assignment or sublease based on how much interest is retained by the tenant.
continue to be personal obligations of the original parties to the lease
even after assignment.
By contrast, a sublease by the tenant does not create privity of estate between the landlord and the subtenant. The subtenant is liable only to the tenant for the sublease obligations, and the subtenant has no claim against the landlord for failure to perform his lease obligations. There is generally no privity of contract between the subtenant and the landlord, either, because only the tenant and subtenant have a contractual relationship. Consequently, the critical issue usually is to decide whether any given transfer of a leasehold is an assignment or a sublease. B. Assignment: An assignment is the transfer of the party’s entire interest under the lease. If a tenant retains any interest, it is a sublease instead. See section IV.C, below. The methods of deciding whether any given transfer is an assignment or sublease are discussed in section IV.D, below. Given our presumption of free alienability of property interests and that leaseholds are property interests, unless the lease prohibits or conditions assignment, either the landlord or the tenant may freely assign the reversion or leasehold, respectively, that they hold. Most leases either expressly prohibit assignment by the tenant or require the tenant to obtain the landlord’s consent. 1. Privity of estate: An assignment places the assignee in privity of estate with the other original party. Privity of estate is rooted in the idea that leaseholds are an estate in land. Example: Lord leases Blackacre to Tenant, who assigns the leasehold to Newcomer. Lord and Newcomer are now in privity of estate with respect to Blackacre; Lord and Newcomer have the relationship of landlord and tenant. The consequence of being in privity of estate is that the assignee is obligated to perform all the lease covenants that “run with the estate.” See section IV.B.1.a, below. Perhaps the most important lease promise that runs with the estate at common law is the promise to pay rent. Example: The lease between Lord and Tenant provided that Tenant would pay $1,000 per month rent. This promise runs with the estate. Because Newcomer is in privity of estate with respect to Blackacre, Newcomer must perform the promise and pay the rent. "****** DEMO - www.ebook-converter.com*******"
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