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A lease assignment occurs when a tenant fully transfers their lease to another party. This is particularly important for tenants who wish to get out of their leases early due to financial issues, especially if a landlord does not allow subleases.
Subletting means that you find another person to live in your place and pay rent to you, while you remain the original tenant and responsible for the lease. Assigning means that you transfer your lease rights and obligations to another person, who becomes the new tenant and deals directly with the landlord.
As a general rule, retail leases prohibit tenants from assigning the lease to an assignee or subleasing the premises to a subtenant (each referred to herein as a ?Transfer?) unless the landlord consents in writing to such Transfer.
The landlord must consent to the assignment of the lease prior to the assignment. For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015.
By contrast, an assignment occurs when you transfer all your space to someone else (called an assignee) for the entire remaining term of the lease. As with a sublet, you are free to choose your assignee and determine the rent unless your lease says otherwise.
A lease is a rental contract between a landlord and a tenant, whereas a sublease is a contract between a tenant and a sub-tenant who has assumed obligations of the tenant's lease.
The Sutton approach comes from an Oklahoma case where a landlord's insurance carrier sought to pursue a negligent tenant for damage caused to the landlord's property. That court stated ?the law considers the tenant as a co-insured of the landlord absent an express agreement between them to the contrary. . .? Sutton v.
Key Takeaways. A percentage lease requires commercial tenants to pay to the landlord a set percentage of gross revenue earned from business conducted at the leased premises.