Which statement is true in respect to the assignment of a lease?

Which statement is true in respect to the assignment of a lease?

• A. Only a portion of the leasehold is transferred
• B. The assignor remains liable on the lease
• C. The entire leasehold is transferred
• D. Assignments are not permitted

Answer: (C)

In an assignment of a lease, the tenant transfers the entire leasehold interest to the new party for the remaining term. The assignee takes on all rights to occupy and all obligations under the lease, including paying rent and meeting the covenants, effectively stepping into the landlord’s contract with the original tenant. It’s different from a sublease, which would transfer possession for only part of the term while the original tenant remains the primary party to the lease. Landlord consent is usually required for an assignment, and the original tenant may be released from liability only if the landlord agrees to it. Therefore, the statement that the whole leasehold is transferred is the true description of an assignment.

In an assignment of a lease, the tenant transfers the entire leasehold interest to the new party for the remaining term. The assignee takes on all rights to occupy and all obligations under the lease, including paying rent and meeting the covenants, effectively stepping into the landlord’s contract with the original tenant. It’s different from a sublease, which would transfer possession for only part of the term while the original tenant remains the primary party to the lease. Landlord consent is usually required for an assignment, and the original tenant may be released from liability only if the landlord agrees to it. Therefore, the statement that the whole leasehold is transferred is the true description of an assignment.