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Real Property • Landlord-Tenant
PROP#090
Legal Definition
A sublease is a transfer of an interest in a lease where the tenant retains some part of the remaining term. There is no privity of estate between the assignee and the landlord, so the assignee is not personally liable to the landlord for rent or performance of any covenants, unless expressly assumed.
Plain English Explanation
Exams love to try to trick you on the difference between an assignment and a sublease. If you remember from other cards, an assignment is when a tenant transfers all of their remaining interest in a property to someone else. For example, if Amy has a 6 month lease and she wants to assign it after a month of living there, she must transfer the remaining 5 months of her lease for it to qualify as an assignment.
Any amount less than the entire remainder of an interest results in a sublease. In other words, if Amy has 100 days left on her lease, and she transfers 99 of those days to Carl, Amy has subleased the property to Carl since she has retained some amount of the lease after Carl.
This distinction is important because some rights, duties, and obligations don't apply to people who sublease, such as the duty to pay rent or perform any covenants that may be attached to the land.
Any amount less than the entire remainder of an interest results in a sublease. In other words, if Amy has 100 days left on her lease, and she transfers 99 of those days to Carl, Amy has subleased the property to Carl since she has retained some amount of the lease after Carl.
This distinction is important because some rights, duties, and obligations don't apply to people who sublease, such as the duty to pay rent or perform any covenants that may be attached to the land.
Hypothetical
Hypo 1: Amy rents Blackacre from Bob and signs a 3 month lease for January, February, and March. At the end of January, Amy transfers her interest in Blackacre to Carl for February. Result: Carl has subleased Blackacre from Amy. This means Carl has no duty to pay Bob any rent, though Amy still does. Also, if there was a covenant that forces whoever possesses the land to mow the lawn on the first of every month, Carl wouldn't need to do that. He's just a sublessor.
Hypo 2: Amy rents Blackacre from Bob and signs a 3 month lease for January, February, and March. At the end of January, Amy transfers her interest in Blackacre to Carl for February and March. Result: This is an assignment. Amy has transferred her remaining interest to Carl. This subjects Carl to more obligations, as discussed under other cards related to assignment.
Hypo 2: Amy rents Blackacre from Bob and signs a 3 month lease for January, February, and March. At the end of January, Amy transfers her interest in Blackacre to Carl for February and March. Result: This is an assignment. Amy has transferred her remaining interest to Carl. This subjects Carl to more obligations, as discussed under other cards related to assignment.
Visual Aids
Related Concepts
How do lease covenants affect a landlord-tenant relationship where one party breaches?
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