Also known as:assignment · assignments · assign · sublease · subleases · sublet · subletting · assignment vs sublease · lease assignment · lease sublet
Written by attorneys · grounded in primary & secondary sources — see below
in property law
A transfer by a tenant of all or part of the leasehold interest to a third party. An assignment conveys the entire remaining term while a sublease retains a reversion in the original tenant.
Sources & Authorities· 21 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
How it applies
Common Examples
6
Bankruptcy Court Lease Claim
Anchor Bank holds a long-term lease on commercial space. When the tenant files for bankruptcy the bank sues in federal district court to recover unpaid rent under an assignment clause. The district court refuses to send the state-law contract dispute to the bankruptcy court.
Oral Assignment of Lease Rights
Avalon Pharmaceuticals orally tells its landlord it is transferring its lease rights to Apollo Energy. The landlord accepts the new tenant without further writing. Apollo begins paying rent and the original tenant is released from further obligations.
Arthur Abrams and his spouse hold a commercial lease as community property. In their dissolution proceeding the court assigns the lease to Arthur and divides the remaining value between the parties without regard to fault.
State Law Governs Assignment
Alfred Ashford assigns his apartment lease to Alexandra Armstrong. When a dispute arises over the assignee's liability the federal court applies the forum state's rules on lease transfers rather than a federal common law.
Erie R. Co. v. Tompkins326 U.S. at 101, 110–11
Mortgage Moratorium Affects Lease
During an economic emergency the state legislature extends the term of a residential lease. The original tenant then subleases the extended term to Amber Alonzo. The landlord challenges the extension as impairing the mortgage contract.
Home Building & Loan Association v. Blaisdell290 U.S. 398, 54 S.Ct. 231, 78 L.Ed. 413 (1934)
Just Compensation for Lease Taking
The city condemns property subject to a long-term lease held by Artemis Logistics. The court awards compensation to both the landlord and the tenant for the value of the leasehold interest transferred by assignment.
Chicago, Burlington & Quincy Railroad Co. v. City of Chicago166 U.S. 226, 239, 17 S.Ct. 581, 585, 41 L.Ed. 979 (1897)
Common questions
Frequently Asked
3
What is the key distinction between an assignment and a sublease?+
An assignment transfers the tenant's entire remaining interest while a sublease creates a new tenancy between the original tenant and a subtenant who holds only part of the term.
Supporting sources
Does a landlord's consent requirement apply equally to assignments and subleases?+
Many leases treat assignments and subleases the same for consent purposes but courts examine whether the transfer meets the definition of each before enforcing any restriction.
Supporting sources
When is an oral manifestation sufficient to create an assignment of lease rights?+
An obligee may manifest intent to transfer lease rights orally unless a statute or the lease itself requires a writing.
5 U.S. (1 Cranch) 137 (1803)Property
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