When a Sublease is Really an Assignment
Nov 1, 2001 | Article
Written by J.E. Dennis Daoust
(Shopping Centre Newsletter, Vol. 21, No. 11)
An assignment of lease and a sublease are similar because in both of them, the tenant gives up possession of the premises to another party. However, on the other fundamental ways, they are different.
When a tenant assigns its lease, it transfers its tenancy to the assignee and ceases to have any tenancy interest in the premises.
The assignee becomes the direct tenant of the landlord, who can still sue the tenant if the tenant's obligations are not performed (this applies whether the default occurs before or after the assignment).
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