a sublease and an assignment

What is Assignment of Lease and How It Differs from Subletting

The assignment of lease (and rent) is a foggy topic that is often confused with subletting. Let's clear the air once and all right now. Learn the differences between a lease assignment and sublease so you can make the right choice.

What is Assignment of Lease? - The Important Basics

Let's begin by introducing the 3 players in a lease assignment - The landlord, the original tenant (assignor) and the new tenant (assignee). The original tenant has an unexpired lease agreement with the landlord and he wants out. Since the original tenant can't just break the agreement and walk off, what he does is to get a new tenant to swap places... and take over all his rights and obligations for the remainder of the lease period. So if the original tenant signs a 1 year commercial lease and the business goes bust after 8 months, the new tenant will be assigned a 4-month commercial lease (with the same terms and conditions as the original agreement). Now here's the big catch: Even though the original tenant has handed over all his duties and obligations to the new tenant, he is not off the hook... unless the landlord agrees to release him from all liabilities. If the new tenant stirs up trouble, our dear original tenant will find himself in hot soup as well. Of course, whether the original tenant is allowed to pull this assignment trick out of his hat is a whole new matter. Knowing for sure is actually simpler than most people think: First, examine your local landlord tenant laws for any lease assignment rules. Most of the time, landlords are given the right to allow or disallow assignments but once in a while, the local law let tenants have the final say instead. If there's no mention of lease assignments in your law text, then your rental lease agreement shall dictate the terms.

Difference Between Lease Assignment and Subletting

When it comes to subletting vs assignment of lease, there's often a massive mix-up. Sometimes even real estate professional get it wrong by assuming them to be one and same thing. However if you dig deeper, you will find that the differences are not just numerous, but important as well. Let's begin by dragging the landlord into the picture. An assignment of lease launches the new tenant into a direct relationship with the landlord - The landlord collects rent straight from the new tenant and deals with the new tenant directly on all lease issues. So in this case, the original tenant gets to take back seat and doesn't have to manage the new tenant actively. On the other hand, there's no direct relationship between the landlord and new tenant (subtenant) in a sublease. Instead the original tenant plays mother goose and is responsible for collecting rent from the subtenant and making sure that he's following the lease rules. When you compare the two, a sublease is a lot more hands-on for the original tenant. No matter which path you take, you will still want a good new tenant who pays the rent on time and follows the lease rules to the agreement. For the golden rules on screening tenants and running credit checks, Click here for our guide to running tenant credit checks. When you have a lease assignment, the terms and conditions of the lease remains largely unchanged - It's almost like taking the original lease agreement and swapping the tenant's name with another. With a sublease, there's more breathing space - The original tenant can decide how much rent to charge, how long the subtenant is going to stay or even collect security deposit... as long as it stays within the boundaries drawn by the original lease agreement between the landlord and original tenant.

Should You Choose Assignment of Lease or Sublease?

You are the Landlord - A lease assignment is recommended in most cases. You will have more control over your new tenant (instead of leaving matters in the original tenant's hands and hoping that he would do a good job)... plus you still have the original tenant to cover your back in case anything goes wrong. You are the Original Tenant - Now this is a tricky one. If you want to someone to take over the entire lease and property for its remaining duration (e.g. your business goes belly-up and you no longer need the office), then help yourself to a lease assignment. If the landlord's consent is required for assignment (and he doesn't give the nod), you can always try offering him a lease assignment fee as a deal sweetener. However, if you are looking for someone to share the place (and rent)... or perhaps you need someone to cover the rent while you are overseas for a few short months, then a sublease would be ideal. You are the New Tenant - An assignment of lease works better for you most of the time. You won't be at the mercy of the original tenant (for example if he screws up and the landlord terminates the original lease agreement, your sublease might also go up in flames). But if you only want to rent part of the property... or don't want to tie yourself down for the remaining lease duration, then you are better off sticking to a sublease. Now that we have covered the topic of assignment vs sublease, go ahead and take your pick - Click here for an assignment of lease form or Click here for a sublet agreement instead.

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Legally reviewed by: King Law July 30, 2024

In today’s real estate market, rent payments may be extremely difficult to make. Sometimes we have to take part-time jobs in another city, leave the college apartment for the summer, or any circumstance where we have to pay double rent and need help with the finances. This is where most people think about a sublease. Subleasing involves the tenant of the property leasing their property or a portion of their property for a specific amount of time. Usually, this means the tenant is planning on returning to the property. A difference between a sublease and an assignment is in an assignment, the tenant is assigning the rest of the lease to the new tenant for the entire duration of the lease. When thinking about a sublease or an assignment it is important to think about the liability. 

In general, the goal of a sublease is for the renter to make payments, so you do not have to. This saves tenants money and gives the new renter a place to stay for a short period. But, there are some risks. The landlord-tenant responsibility does not change in a sublease. If the new renter does not make the rent payments, the original tenant is the one liable. In a sublease, the tenant is always liable under the privity of contract and privity of estate. Now this does not mean the tenant cannot seek payment from the renter and the renter can do whatever they want. The tenant can seek action against the person renting, but the tenant is the one liable to the landlord not the renter in a sublease. It is important to remember when planning a subleasing agreement that if you are the tenant, you are still liable to the landlord. The assignment is different.

In an assignment, the renter is now liable to the landlord. The renter in an assignment is now the new tenant and is liable under the privity of the estate because they are the tenant in possession of the property since they assumed the remainder of the lease. The original tenant is not returning in this circumstance. The original tenant is still liable, however. The original tenant will still be liable under the privity of the contract. In this circumstance, both the tenant and new tenant are held liable by the landlord, which is why an assignment is different than a sublease. 

When thinking about getting help with your payments or finding a short-term place to live, it is important to think about the liability of a sublease or assignment. King Law Offices is a full-service law firm with an outstanding team of professionals who work diligently, creatively, and compassionately on behalf of our clients each day. If you have a current conflict with your title or your deed, contact King Law at 888-748-KING for a consultation. We have offices located across western North Carolina and upstate South Carolina. We are here to serve you and to guide you as we navigate this journey together.

Legally reviewed by: King Law Carolina Attorneys July 30, 2024

This blog post has been reviewed and verified by legal experts at King Law. Our team is dedicated to providing premium legal services with compassion, innovation, trust, and advocacy. Serving Western North Carolina and Upstate South Carolina, we offer flexible meeting options and strive to exceed client expectations with high-quality legal representation and exceptional client relationships.

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What is the Difference Between an Assignment and a Sublease?

by Pam Pester | Sep 17, 2019

Commercial real estate clients frequently ask how an assignment of a lease differs from a sublease.  The difference is primarily a legal one, although each achieves a similar practical result.

Assignment .  An assignment of a real estate lease is a complete transfer of the right to be the tenant under the lease.  The third-party assignee becomes the “tenant” under the lease, taking over all of the leased premises, and is substituted for the old tenant. The new commerial real estate tenant pays the rent required under the lease directly to the landlord and is treated as the tenant under the lease for all purposes.  However, the catch is that the assignor tenant, unless released from liability by the landlord, remains liable for the obligations under the lease if the new tenant defaults. The old tenant can be sued by the landlord for back rent and other obligations imposed by the lease if the new tenant fails to pay or perform as required by the lease.  Given that a commercial real estate tenant who assigns a lease remains liable for the default of the new tenant, tenants should try to negotiate an automatic release provision.  Unfortunately, many landlords are unwilling to make this concession. An alternative strategy is to ask the landlord for a release if the proposed new tenant is of similar financial strength and creditworthiness.

Sublease. A sublease is a new lease agreement between the real estate tenant as sublessor and a third party as sublessee for all or a portion of the leased premises. The original commercial real estate lease between the tenant and the landlord remains in place, unaffected by the sublease. This means that the tenant remains liable for monthly rent under the original lease, while collecting rent from the subtenant under the sublease, which may be more, less or the same as the rent due under the main lease.

A sublease can be for less than all of the leased premises, while an assignment that transfers the entire lease must be for all of the premises. A sublease is a more involved transaction, as it requires a full sublease document between the commercial tenant as sublessor and the sublessee.

Reasonable Consent .  The landlord must be reasonable in consenting to the proposed assignment or sublease. Under Florida law a landlord cannot be unreasonable or arbitrary in withholding consent to an assignment or sublease. Nonetheless, it is still better to state in the text of the lease that the landlord will be reasonable.

In drafting an assignment or sublease clause, the tenant’s goal is flexibility. Being able to assign or sublet excess space with minimal interference from the landlord and minimal liability in the event the new tenant defaults can be a tremendous benefit to the tenant as the business climate changes from year to year.

When you need assistance with your commercial  lease in Tampa, FL and surrounding areas contact Pam Pester, Owner and President of Mobiliti CRE.  Mobiliti CRE is an independently owned commercial real estate company specializing in exclusive tenant and buyer representation.

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Assignment, Subleasing, And Why It's Important To Negotiate The Right To Do Both

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In the market for commercial space? Chances are you’re focusing your efforts on sourcing a property that suits your current business requirements.

However, in today’s ever-changing economy/business climate, companies often need to upsize or downsize at short notice.

As a tenant, where does that leave you when locked into a long-term commercial lease?

Keep it flexible

It’s hard to anticipate whether you’ll be faced with breaking a lease before it happens. So, it’s important to keep your contract flexible by negotiating a subleasing and assignment clause into your agreement. This means you’ll be able to transfer all or part of your space to another tenant down the track if the situation calls for it.

What’s the difference between an assignment and a sublease?

Lease assignments and subleases are often viewed in a similar light. This is because both bank on a third party taking over a commercial lease. But, there are some important differences to consider:

Lease assignment

A lease assignment is when an entire property/space, including the existing tenant’s rights and interest in the commercial lease, is transferred over to a new party.

When it comes to leasing assignments, the new tenant takes on the rights and responsibilities of the assigning tenant. That means the original tenant is not liable anymore if the new tenant breaches the lease.

Lease assignment is best undertaken when:

• The whole lease can be disposed of
• The current lease has favourable terms that would be accepted by another tenant

Major hurdles when it comes to lease assignment:

• Requires upfront capital incentive
• Requires landlord consent

A sublease, on the other hand, is a separate contract between the original tenant and a subtenant. Unlike an assignment, a sublease only turns over part of a property. That means that the original tenant shares the rights and responsibilities to the premises.

A sublease may be preferable for tenants who wish to lease out part of their property to another company for the remainder of the lease term. It may also suit if a tenant needs to rent out the entire property for a period within their fixed-term lease.

In this case, the sublessee treats the sublessor as their landlord. In turn, the sublessor assumes liability on behalf of the sublessee.

Subleasing is best undertaken when:

• You're looking for a partial or temporary cost saving initiative
• Your landlord does not consent to or permit assignment
• Your current lease has. onerous clauses that another tenant wouldn’t agree to

Major hurdles when it comes to subleasing:

• Inherent security risks
• You’ll likely recuperate less than 50%-70% of the rent

You can learn more about some of the benefits of commercial subleasing here and what commercial sublessors should expect from subleasing here .

The importance of a lease assignment and sublease clause

The right to assign or sublet a premises comes down to the language used in the commercial leasing agreement.

If there is no prohibiting or limiting clause, a tenant does not need the landlord’s permission to do so. However, if the contract contains such provisions, the existing tenant needs to get the landlord’s consent. This can prove quite costly for the tenant, who may have to continue to pay rent even if they no longer occupy the premises.

Other options for breaking a commercial lease

The odds usually aren’t stacked in the tenant’s favour when it comes to breaking a commercial lease . However, if you used a tenant representation specialist before signing your contract, you should have received the right advice to protect yourself.

Break clause

Well negotiated leases may have a ‘break clause’, however, most landlords are reluctant to include one of these. A break clause basically lays out the circumstances and the manner in which a tenant can break a commercial lease early.

As with any contract, it’s up to the two parties to negotiate terms. One option may be to allow early termination of a lease if a new tenant with similar financial security takes over. This is similar to an assignment. However, the new tenant would take over the full liability of the remaining lease.

Pay out the commercial lease term

Not a desirable option for most tenants, however, there may be situations where it is the only choice. For example, if you were closing your business before the expiry of your lease term and there was no way to arrange an assignment or sublease, paying out the remainder of your term may be the only course of action.

Most people would consider this a worst-case scenario. This, again, highlights the importance of seeking the help of a tenant representation specialist prior to signing any commercial lease .

Commercial tenants should try to mitigate their risks upfront. Before signing a lease, or even at the heads of agreement stage , we suggest negotiating a clause which requires a landlord to act reasonably in the case of lease assignment or sublease.

Work with a commercial tenant advocate

Negotiating commercial lease terms can be tricky (even daunting at times). This is because most businesses only have to do it once every 5-10 years. Being able to negotiate provisions that would not otherwise be included may also prove challenging because landlords prefer not to limit their options.

Luckily, an experienced tenant representative will guide you through the lease negotiation process so your needs are met every step of the way. So, the next time you face a lease negotiation, let Tenant CS balance the playing field.

Considering breaking your lease? Whether you're exploring options like subleasing, assigning, or surrendering, a detailed property strategy is crucial.

Consulting with a tenant representation specialist is your best move, especially if there's less than a year remaining on your lease. At Tenant CS, we exclusively represent tenants, not landlords. Whether you need assistance with subleasing, exiting your lease, finding and negotiating a new lease, or undertaking a mid-lease rent review, appointing us can potentially save you hundreds of thousands of dollars over your lease term while protecting your interests.

Book a call with us today to discover how we can help you effectively negotiate your next lease or exit your current lease early !

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Sublease: Definition, How It Works, Laws, and Example

James Chen, CMT is an expert trader, investment adviser, and global market strategist.

What Is a Sublease?

A sublease is the re-renting of property by an existing tenant to a new third party for a portion of the tenant’s existing lease contract. The sublease agreement may also be called a sublet.

Subleasing may or may not be permitted in the terms of the original lease, and may be subject to additional restrictions by jurisdiction. Even if a sublease is permitted, the original tenant is still liable for the obligations stated in the lease agreement, such as the payment of rent each month.

Key Takeaways

• A sublease is the legal transfer of tenancy from an existing tenant to a third party for a specified period.
• The owner of the real estate must typically approve any subletting arrangement offered by the first tenant, subject to local laws and regulations.
• If a tenant decides to sublease, they remain responsible for rent payments and other contractual obligations.

How a Sublease Works

A lease is a contract between a property owner and a tenant that transfers the owner’s rights to the exclusive possession and use of the real estate property to the tenant for an agreed-upon period. The lease states the length of time the contract is to run and the amount of the tenant’s rent. In legal terms, the tenant’s legal right to possess the property is deemed tenancy. Subleasing occurs when the tenant transfers a part of their legal tenancy to a third party as a new tenant.

Subleasing can be established unless the original lease forbids it. However, in most cases, the owner must be notified and must approve any subletting arrangement created by the tenant. Control over the subletting process could be written into the original lease so that the owner has some control over who uses and/or occupies their property.

A tenant who sublets property must understand that subleasing does not release them from their obligations on the original contracted lease. The tenant is responsible for paying rent and for repairs or damage to the property. That means that if a new subtenant does not pay rent for three months, the original tenant that subleased the property is liable to the landlord for the overdue rent amount and any late fees . In turn, the subtenant is liable to the original tenant for the unpaid rent.

Subleasing and State Laws

The laws of many states and local municipalities affect a tenant’s right to sublease. These laws may allow an individual to sublease under certain conditions even if their contract with the landlord forbids it. For example, in New York City, a tenant who lives in a building with four or more units has the right to sublease, as long as the landlord consents—or if they deny the sublet on unreasonable grounds, Any lease provision restricting a tenant’s right to sublease is void as a matter of public policy.

In San Francisco, a tenant can replace a roommate with another, even when prohibited by a written lease, as long as the replacement meets the landlord's application screening standards. For example, a landlord might demand a certain credit score where a tenant is concerned. Subleases can apply to both residential and commercial properties.

When subleasing, it's standard for only the original tenant's name to be on the lease—even if the sublessee pays the landlord directly.

Example of a Sublease

Because a lease is generally for a predefined term, situations can arise that make it difficult or impossible for the original tenant to complete the lease term. For example, if a tenant is renting an apartment in Chicago with a 12-month lease and, during month four, that tenant receives a job offer in Boston, the tenant may decide to sublease the apartment to another tenant for the remaining eight months. The sublease means that the original tenant can accept the job and move and does not have to pay expensive fees to get out of the lease or pay rent on two apartments.

The landlord also benefits because they receive all 12 rent payments and are saved the expense and effort of finding a replacement tenant. The sublease arrangement also means that the original tenant retains an interest in the apartment. Thus, if the original tenant decides to move back to Chicago, they may be able to renew their lease on their old apartment.

Office of the New York State Attorney General. " Residential Tenants’ Rights Guide ," Pages 26-27. Accessed Oct. 7, 2021.

City and County of San Francisco Rent Board. " Topic No. 151: Subletting and Replacement of Roommates ." Accessed Oct. 7, 2021.

• Apartment List. " What is Subletting? Guide to Sublet Apartments ." Accessed Oct. 7, 2021.

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Assignment vs. Sublease: Difference and Comparison

Difference Between Assignment and Sublease

Assignment vs. Sublease Comparison Chart

Connection to landlord, typical permissions, assignment vs. sublease definitions, ◉ assignment.

Assignment vs. Sublease Frequently Asked Questions

Who typically initiates an assignment, can a sublease extend beyond the original lease's term, is it easier to reverse an assignment or a sublease, can a subleased space be further subleased, who does the landlord hold accountable in a sublease scenario, is rent typically the same in a sublease, can an assignment be partial, what happens to the original lease during an assignment, are there risks to subleasing, do all leases allow for assignments and subleases.

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Apr 07, 2021

The differences between assignment and sublease.

By Don Catalano

An assignment is the transfer of the commercial tenant’s entire responsibilities in a lease. When a corporate tenant assigns its lease, the assignee takes over the tenant’s responsibilities under the lease and communicates directly with the landlord.

When a tenant decides to assign a lease, all his rights and responsibilities in the original lease agreement are released to the third-party assignee. Hence, the original tenant (the "assignor") will have to leave the unit and allow the new tenant to take over all of the leased building.

It is important to check the clauses in the original lease agreement before committing an assignment arrangement. In some leases, the original tenant will remain responsible for the terms of the lease, especially if the new tenant defaults on the lease agreement or causes damage to the property. You may want to check your lease agreement for the option to pursue a permanent assignment so you won't be responsible for expenses or damages.

When a corporate tenant subleases an office , the tenant is transferring all or a portion of the premises for less than the entire term of the lease. Subletting is when a corporate tenant gives another tenant the right to occupy a portion of the entire rental unit for a specific period.

Corporate tenants often sublease when market rents have fallen and parties needing space typically sublease to get space already built-out at a much lower rate than they could as a direct tenant.

Do Both Options Need a Landlord’s Consent?

Both subletting and assigning a commercial lease require the permission of the landlord or a representing agent; this is often expressly indicated in the lease agreement itself. Although most state laws prohibit landlords from withholding consent unreasonably. If the landlord objects to the sublet or assignment, then they must do so on reasonable grounds.

In the case of assignment, a vetting procedure which usually includes credit checks may be completed before formalizing the arrangement with the associated documentation.

Is Subletting or Assignment Right For My Company?

Whether to sublet your commercial property or assign a commercial lease depends entirely on your business situation. By subletting unused space, tenants can recover vital running costs and even improve the viability of their own business. Also, the original tenant remains the tenant and is responsible for all clauses in the original lease.

Assigning your commercial lease to a third party is a good option if you want to terminate your tenancy before the end of your agreement and vacate the premises completely. This is often a good idea if you are planning to sell or relocate your business . With an assignment, you will be absolved of all responsibilities as the original tenant from the date of assignment.

Here are a few other articles to check out:

8 working from home tips you should know, 4 site selection tips when looking for office space, 5 tips when moving your office from big cities to the suburbs, subscribe for more great cre tips hbspt.cta._relativeurls=true;hbspt.cta.load(121314, 'cd3ad71f-75e1-4533-9c5a-8e82767e7aba', {"usenewloader":"true","region":"na1"});.

Don Catalano

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What is the Difference Between Sub-letting and Assigning a Lease?

If a tenant wants to leave their premises before the vacation date specified in their lease agreement, they can assign (i.e. transfer) or sub-let the shopfront.

By assigning or sub-letting the lease to a third party, tenants can leave the property without breaking the terms of their lease or paying two sets of rent. Assignment and subletting appear similar as they both rely on a third party taking over premises. But there are some key differences between the two.

We set these out below to help tenants decide which is better suited to their needs.

When is a Sub-let Used Instead of an Assignment?

A sub-let is when an existing tenant leases out all or part of their premises to a third party. However, the original tenant is still liable under the lease. You can read more about subleasing in our article, ‘ I’m Sub-letting a Property. What Do I Need to Know? ‘

An assignment, on the other hand, is when a tenant transfers their lease to someone else. The tenant is then no longer responsible under the original lease from the assignment date. Tenants more commonly assign the property when selling the business and sublease when the business has additional space they want to lease out. Importantly, a tenant requires the consent of the landlord to assign or sublet the property.

Should I Sub-let or Assign My Lease?

The answer depends on the circumstances of the parties’ transaction. For instance, a tenant may choose to sub-let if they are simply looking to rent out additional space to recoup costs or increase profit margins but want to remain as a tenant.

If, however, a tenant wants to end the lease early and vacate their business’ premises entirely, an assignment is likely a preferable option. An assignment transfers the obligations under the original lease to the new tenant (the assignee), placing them in the shoes of the old tenant. Both parties usually enter into a transfer of lease and deed of consent to assign the lease with the landlord and each other.

Sub-letting also creates a new series of obligations for head-tenants who act, essentially, as landlords. The head-tenant will require the sub-tenant to indemnify the tenant and landlord for their use of the property. Parties will effect this by entering into a formal sub-let with the landlord’s consent.

Key Takeaways

Assigning a lease and sub-letting are two options for tenants wanting to leave the premises before their lease ends.

Sub-letting involves a tenant leasing out all or part of their premises to a third party. Under a sub-letting agreement, the rights and obligations created under the initial lease remain in force.

An assignment involves transferring the lease from one party to another. After the assignment date, a tenant’s rights and obligations no longer exist. Tenants looking to vacate their premises entirely should, where possible, assign their lease as it gives rise to fewer liabilities and duties.

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Subleasing and Assignment Provisions in Commercial Leases

• June 17, 2020

Before the COVID-19 pandemic, many business owners paid little attention to subleasing and assignment provisions when negotiating commercial leases . It was common to focus on rent, maintenance, taxes, and insurance, which affect a tenant’s bottom line, and options to renew the lease if the business thrives. Recently, however, one of the top concerns of commercial tenants is flexibility in case they no longer need to use a portion, or all, of the leased space. In this context, subleasing and assignment provisions are key deal terms.

The Difference Between Subleasing and Assignment

A sublease does not alter the relationship between the landlord and the tenant, who remains liable for all of the tenant’s obligations under the lease. However, the tenant enters into a subordinate lease (the sublease) with a subtenant regarding a portion, or all, of the leased space. After a sublease is signed, the landlord interacts with the tenant, and the tenant interacts with the subtenant.

An assignment alters the relationship between the landlord and the tenant by assigning the tenant’s rights and obligations from the first tenant (the assignor) to the second tenant (the assignee). The assignee steps into the shoes of the assignor, and has a direct contractual relationship with the landlord. After an assignment of the lease, the landlord interacts directly with the assignee.

Important Deal Points Regarding Subleasing and Assignment

Leases may include many provisions regarding subleasing and assignment. Some of the most common issues include the following:

• In what circumstances is landlord consent required? Leases typically require the landlord’s consent for any sublease or assignment. However, some leases have different provisions for special circumstances, such as subleasing or assignment to a related entity, or assignment of the lease in connection with the sale of the tenant’s business.
• What is the standard for landlord consent? Provisions that require the landlord’s consent may be followed by a standard such as “in the landlord’s sole discretion,” or “which may not be unreasonably withheld.” Obviously, the second standard is more favorable to the tenant. However, as a practical matter, if a dispute arises regarding whether a landlord’s denial was reasonable or unreasonable, arbitration or litigation would be expensive, the outcome would be uncertain, and the prospective subtenant or assignee may be unwilling to wait to see how the dispute is resolved.
• What information must be provided regarding the proposed subtenant or assignee? Many leases require confidential financial information regarding the proposed subtenant or assignee. The proposed subtenant or assignee may be more comfortable providing information if the lease contains confidentiality and non-disclosure requirements to restrict the landlord’s use of the information. An argument can be made that less information should be required regarding a proposed subtenant than a proposed assignee, because the landlord will not enter into a direct contractual relationship with the subtenant and the tenant will remain liable under the lease.
• What are the landlord’s alternatives? A tenant might assume that if the tenant requests consent to a sublease or assignment, the landlord’s alternatives will be limited to granting or withholding consent. However, many leases give the landlord a third alternative, to cancel the lease if the tenant requests a sublease or an assignment. This is known as a right of recapture.
• When is the landlord’s response due? Some leases do not set a deadline for the landlord’s response to a request for consent to a sublease or assignment. A delayed response would prevent the tenant from moving forward until the response is received. A delayed response also may result in a lost opportunity, if the proposed subtenant or assignee is under time constraints.
• What is the effect if the landlord fails to provide a timely response? A lease may provide that if the landlord fails to respond to a request for consent within a specified period of time, then consent is deemed granted, or a lease may provide that in such circumstances, consent is deemed denied. The first alternative is more favorable for a tenant, but the prospective subtenant or assignee might not be willing to rely on a “deemed consent” provision and may require actual consent before moving forward.
• What are the landlord’s remedies if a sublease or assignment is made without requesting consent? Generally, if a tenant subleases or assigns a lease without obtaining required consent from the landlord, then the tenant is in default and the landlord can exercise all remedies under the lease. The lease also may provide that a sublease or assignment without the landlord’s consent is invalid and unenforceable.
• Will the assignor be released from liability for the tenant’s obligations after an assignment? It may seem like common sense that if a lease is assigned with the landlord’s consent, then the original tenant (assignor) will no longer be responsible for the tenant’s obligations under the lease. However, a lease may provide that the assignor will remain liable under the lease after an assignment. Similarly, the landlord’s written consent may state that both the assignor and the assignee will be responsible for the tenant’s obligations after the lease is assigned. In order to be released, the assignor should obtain a written agreement from the landlord stating that after an assignment, the assignor will no longer be responsible for the tenant’s obligations under the lease.
• Will a guarantor be released from liability for the tenant’s obligations after an assignment? Many landlords require a personal guaranty from an individual, or a corporate guaranty from a related entity, to ensure payment of the tenant’s obligations under a commercial lease. Guarantees typically provide that they will remain in effect even if the lease is assigned. However, the tenant may be able to negotiate for the termination of the guarantee in the event that the lease is assigned.  In some cases, the landlord may require a substitute guarantor.
• What is the effect of subleasing on the obligations of the tenant and the guarantor? A sublease does not affect the tenant’s obligations to the landlord under the lease, or the guarantor’s obligations to the landlord under the guaranty.

If a business owner is considering entering into a new lease, it is important to carefully review the subleasing and assignment provisions and negotiate any necessary changes before signing the lease. If a tenant desires to sublease or assign an existing lease, it is important to review the applicable requirements and restrictions before taking any action. An experienced real estate attorney can assist the tenant by spotting issues, explaining alternatives, and negotiating with the landlord to help the tenant accomplish its business objectives.

ABOUT THE AUTHOR(S)

Michael D. Klemm

Phone: 952-746-2198, email: [email protected], due diligence in commercial real estate transactions, three alternatives for a buyer to keep a seller’s low mortgage interest rate, webinar replay: hoa fall legal updates 2022, escalation clause tips and traps for buying a home (or an island), webinar replay: hoa fall webinar, on-demand webinar – covid-19 and hoas: how to operate during the pandemic, covid-19 and commercial real estate leases in minnesota, january 1 deadline for preventative maintenance plans, schedules and budgets, crossing the line obtaining building permits for decks in cic’s.

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What’s the difference between a sublet and an assignment?

With both a sublet and a lease assignment, the departing tenant remains responsible for the rent unless a landlord explicitly releases you. 

When Ismail Mustafa, a tenant in Dumbo, wanted to break his lease recently, the landlord gave him three options: He could arrange a sublet, transfer the lease to someone else, or end the lease by paying two months of rent upfront.

There’s obviously a financial cost to paying two months rent as a penalty for breaking your lease but it is also the most clear-cut break with your landlord. If you're considering the same options as Mustafa, it's important to know the difference between transferring your lease to someone else (also known as an assignment) and subletting. Neither are without risk.

"The bottom line is—none of the options is perfect—each has advantages and disadvantages," says  attorney Steven Kirkpatrick, a partner at the law firm  Romer Debbas.

It's worth pointing out that a fourth option might be  offered to you: To move out and pay rent until the landlord finds a tenant. This is highly "problematic," says  Catherine Grad, a tenant attorney with her own practice.  "You no longer have control over the process and you are still on the hook for the rent and you’ve given the power to someone who’s incentive is less than yours." 

Subletting vs. assignment

When you sublet your place it's typically because you intend to return to the apartment. A sublet will usually end a week—but it could be just a day—before the actual end of your original lease.

Subletting for the entire length of the lease is an assignment. An assignment allows you to hand off the rental to a new tenant for the rest of the lease term. This is what Mustafa ended up doing.  What's important is that either way—with both a sublet and an assignment—you are giving up your rights to the rental  but in both scenarios you are often still liable if there is damage to the apartment or the next tenant fails to pay. The risks are "tremendous," Grad says. 

When you assign a lease, the person you are assigning to would pay the landlord directly and deal with the landlord for repairs. 

If you are subletting you stand in the shoes of the landlord. The subtenant pays you the rent and you then pay the landlord. "If there are problems in the apartment, it is your duty to get it fixed," Grad says. This is the case, even if you are not authorized to make the repairs.  So while a sublet and an assignment are technically different, in terms of the risk for the departing tenant, Grad  says,  "it is the same." 

"The fact that you assign your rights does not eliminate your obligation to pay," Kirkpatrick  says.

The only situation in which you wouldn't be responsible for the apartment in any way is if you were released by the landlord from your original lease in writing. In practical terms, Grad says, "y ou will never get that with a sublease but might get it for an assignment. The landlord has no incentive to give that to you. Why not have two people on the hook—both you and assignee?" she asks.

A payment or additional security might be the incentive a landlord needs to release you. Security deposits are capped at one months rent making this type of payment "problematic," says Kirkpatrick but he adds there might be ways to structure it as a quid pro quo to release you of liability.  

Negotiations around lease breaks

A landlord cannot unreasonably deny your request to sublet or assign a lease in a residential situation.  If your landlord isn’t responding to your request to assign the lease, that silence becomes default consent within 30 days of you alerting them or of them receiving any additional information about the arrangement. If a landlord's refusal to assign is unreasonable, that terminates your lease.

If the refusal is unreasonable for a sublet, you aren't released from the lease but you are able to sublet the apartment and can fight it out in court. 

Grad says seeking to sublet or to assign your lease often leads to discussions about lease termination. Landlords know they cannot unreasonably deny your request but they also entered an agreement with you and want you to pay up. Yes, the  landlord has a duty to mitigate—which means they must do all they can to find a replacement tenant if you want to break your lease—but as Grad points out, this benefit isn't a given. 

"You have to fight for it—that's the nature of legal rights. It  doesn’t mean you have a right to break your lease, it just gives you a defense when you get sued for all the rent," she says. 

Insurance considerations

Without release from your own lease you will want to set up a separate agreement with the incoming tenant. Kirkpatrick advises having an indemnification agreement although points out that for practical purposes if the person stops paying the rent, there are no guarantees they will still be able to pay you. "If it were me, I’d want a guarantor," Kirkpatrick says. 

To protect yourself, run a credit report on a prospective subtenant or assignee. Phil Horigan, founder of  Leasebreak,  a website where you can find renters to take over an unwanted lease tells Brick, "in most cases I have heard where a tenant has gotten burned by a sublet, the tenant did not run credit."

You also need to make sure the subtenant or assignee has apartment insurance and that you too have apartment insurance, Grad says. If your landlord has not released you from the lease you remain liable if the tenant, for example, floods the apartment below or there's a fire in the place. 

You also want your tenant to know you are not covering their contents or liability. Jeffrey Schneider, president of Gotham Brokerage (a Brick Underground sponsor) says, "there are various ways to cover this, depending on whether you are an owner or former tenant."

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Emily Myers

Emily Myers is a real estate writer and podcast host. As the former host of the Brick Underground podcast,  she earned four silver awards from the National Association of Real Estate Editors. Emily studied journalism at the University of the Arts, London, earned an MA Honors degree in English Literature from the University of Edinburgh and lived for a decade in California.

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Assignments vs. Subleases: What are the Differences?

by Chamber | Apr 3, 2023 | Blog | 0 comments

Submitted By:

• Peter Pokorny, Commercial Agent | Long & Foster Commercial | ww w .longandfoster.com/AgentSearch/PeterPokorny-13338785
• Peter Pokorny & Bruce Rosen, Attorneys | Real Estate Counselors | www.recdc.com

A tenant who no longer needs its space may want to assign or sublet their premises.  Or a business who needs space, may consider subleasing a space, or having that tenant assign its lease to them.

Although assignments and subleases are similar, they have distinct legal consequences. Some of the key issues are set out below.  

ASSIGNMENT :

What is it?  An assignment is the transfer of the party’s entire interest in a lease. When a tenant assigns its lease, the assignee takes over the tenant’s obligations under the lease and deals directly with the landlord.

When is it typically used?  Assignments are typically used when a party is taking over the entire leased space, for the entire remaining term, and will take on the existing lease economics. One common example is when a business is sold, existing leases are assigned to the new buyer.

Advantages:

• Since the assignee pays rent directly to the landlord, the assignor is not involved in receiving and relaying money each month.
• Although it’s not common, depending upon the circumstances, an assignor may get released from all future lease obligations.

Disadvantages:

• The assignee takes over the entire leased space.  It can’t negotiate to occupy (and pay rent on) a smaller space.
• The assignee takes over any existing liability under the lease that the assigning tenant may have.  An indemnity can help with this.
• The assignee cannot negotiate the rental rate – it must pay whatever the lease charges.
• The assignor forfeits all rights to use the premises and cannot choose to return later.

What is it?  A sublease is the transfer of all or a portion of the premises for less than the entire term of the lease.  A transfer of all of a tenant’s space for a term that is 1-day less than the lease term qualifies as a sublease.

When is it typically used?  Assigning tenants often sublease when market rents have fallen (as they can’t find an assignee to pay the rate under the lease).  Parties needing space typically sublease to get space already built-out at a lower rate than they could as a direct tenant.

• The subtenant can negotiate the rental rate and other business terms with its Sublandlord.
• The subtenant may negotiate for a shorter term than a landlord would agree to for a direct tenant.
• A subtenant may enjoy the benefits of amenities like kitchens and conference rooms it shares with its Sublandlord.
• The subtenant does not have a direct relationship with the landlord. This means it cannot sue the landlord for landlord defaults under the lease (like landlord’s failure to maintain the building).
• The subtenant must get consent of both the landlord and its Sub-landlord for issues like alterations and signage.
• During the term of the sublease, if the tenant defaults under the lease, the subtenant could be evicted by the landlord (even if the subtenant is not in default under the sublease).

Comparing and Contrasting Commercial Sublease and Assignment Clauses

Business is unpredictable. To protect yourself as a corporate tenant, your real estate should allow for flexibility. So whether you are looking to outline your rights in a new lease, discard extra space, or want to learn about your best option to get out of an existing lease, this article is for you.  

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Legal Aspects of Lease Assignments

A well-structured lease assignment agreement is vital to facilitating a seamless transfer of rights and obligations from the original lessee to the assignee. The agreement must address critical legal aspects, including liability allocation, landlord consent, and dispute resolution mechanisms. Key considerations include the assignor's retained liabilities, the assignee's assumed duties, and the process for obtaining landlord consent. Clearly defining liability and indemnification provisions is also imperative. By understanding the legal intricacies of lease assignments, parties can navigate the process with confidence and mitigate potential risks. As the complexity of lease assignments unfolds, it becomes clear that meticulous planning is necessary to protecting all involved parties.

Table of Contents

Understanding Lease Assignment Agreements

A lease assignment agreement is a contractual document that formalizes the transfer of rights and obligations from the original lessee to the assignee, outlining the terms and conditions of the assignment. This document is vital in facilitating a seamless transfer of interests, avoiding potential disputes, and providing clarity on the responsibilities of all parties involved. A well-structured lease assignment agreement should address key aspects, including the effective date of assignment, rent and payment obligations, and any ongoing liabilities. It is also vital to distinguish between a lease assignment and a lease novation, as the latter involves the replacement of the original lease agreement with a new one, whereas assignment involves the transfer of existing rights and obligations. Additionally, the tax implications of a lease assignment, including assignment taxation, must be carefully considered to guarantee compliance with relevant laws and regulations. By understanding the intricacies of lease assignment agreements, parties can navigate the complexities of lease transfers with confidence, minimizing potential risks and disputes.

Assignor and Assignee Rights Obligations

In the context of lease assignments, the assignor and assignee have distinct rights and obligations that govern their respective roles. The assignor, having transferred their interest in the lease, retains certain liabilities, while the assignee assumes specific duties and responsibilities. Understanding these reciprocal obligations is crucial in navigating the complexities of lease assignments.

Assignor's Rights and Liabilities

Upon assigning a lease, the assignor's rights and liabilities are substantially altered, as they are released from primary liability, yet remain secondarily liable for the assignee's performance. This shift in liability has significant implications for the assignor, particularly with regards to tax implications. The assignor may be liable for any outstanding tax obligations incurred prior to the assignment, and may also be subject to tax implications arising from the assignment itself. In addition, the assignor's insurance coverage may also be affected, as the policy may not automatically transfer to the assignee. It is crucial that the assignor reviews their insurance coverage to guarantee that they are adequately protected in the event of any claims or damages arising from the assignee's performance. The assignor's ongoing liability for the assignee's performance highlights the importance of due diligence in selecting a suitable assignee and verifying that the assignment is properly documented. By understanding the assignor's rights and liabilities, parties can better navigate the complex legal landscape of lease assignments.

Assignee's Duties and Obligations

The assignee, as the new lessee, assumes primary liability for performing the lease obligations, including payment of rent, taxes, and insurance premiums, and is responsible for complying with the lease terms and conditions. This includes adhering to the original lease agreement, as well as any subsequent modifications or amendments. The assignee is also bound by the fiduciary standards of a lessee, which entails exercising due care and diligence in fulfilling their obligations under the lease.

As a successor in interest, the assignee may be held liable for any breaches or defaults by the assignor, a concept known as successor liability. This means that the assignee may be responsible for resolving any outstanding issues or disputes that arose during the assignor's tenure. To mitigate this risk, the assignee should conduct thorough due diligence on the lease and the assignor's performance before assuming the lease obligations. By understanding their duties and obligations, assignees can navigate the complexities of lease assignments and minimize potential liabilities.

Landlord Consent and Approval Process

Landlord consent is a critical component of the lease assignment process, as it guarantees that the landlord's interests are protected and that the assignment does not violate the terms of the original lease agreement. This consent process ensures that the landlord is aware of the assignment and has approved the transfer of obligations from the assignor to the assignee.

To facilitate a smooth consent process, the following steps should be taken:

• Review the lease agreement : Identify any clauses that may impact the assignment, such as waiver clauses or silent partners.
• Notify the landlord : Provide the landlord with written notice of the assignment, specifying the terms and conditions of the transfer.
• Obtain consent : Secure the landlord's written consent to the assignment, which may be conditional upon certain requirements.
• Document the process : Maintain a record of all correspondence and agreements related to the consent process.

Lease Term and Condition Amendments

During the lease assignment process, amendments to the original lease terms and conditions may be necessary to reflect the changed circumstances. This is particularly important when the assignee requires modifications to the lease to suit their operational needs. In such cases, the lease agreement should include alteration clauses that permit alterations to the lease terms. These clauses facilitate the parties to agree on changes to the lease, guaranteeing that the modified terms are legally binding.

Term extensions are a common amendment, allowing the assignee to occupy the premises for a longer period. This may be necessary if the assignee requires additional time to fulfill their business objectives. The lease amendment should clearly outline the extended term, including the revised expiration date and any corresponding changes to the rent or other lease obligations. It is vital to obtain the consent of all parties involved in the lease assignment to the amendments, and that the modified lease terms are properly documented to avoid potential disputes. By including alteration clauses and accommodating term extensions, parties can facilitate a smooth handover and a mutually beneficial agreement.

Liability and Indemnification Provisions

Amendments to the lease terms and conditions, such as term extensions, may also raise questions about the allocation of liability between the assignor, assignee, and landlord, highlighting the need for clear liability and indemnification provisions in the assignment agreement.

In considering liability and indemnification provisions, the following key considerations should be taken into account:

• Insurance Coverage : Securing adequate insurance coverage to mitigate potential risks and liabilities.
• Risk Allocation : Clearly defining the allocation of risks and liabilities between the assignor, assignee, and landlord.
• Financial Backing : Obtaining sufficient financial backing to secure the performance of contractual obligations.
• Contractual Protections : Including contractual protections, such as indemnity clauses, to safeguard against potential losses or damages.

Dispute Resolution and Litigation

In the context of lease assignments, disputes and litigation can arise from various sources, including disagreements over liability, indemnification, and contractual obligations. Effective dispute resolution mechanisms, such as mediation and arbitration, can provide an alternative to litigation, offering a more efficient and cost-effective means of resolving disputes. In situations where litigation is unavoidable, developing a well-planned litigation strategy is essential to achieving a favorable outcome.

Mediation and Arbitration

Disputes arising from lease assignments can be effectively resolved through alternative dispute resolution mechanisms, including mediation and arbitration, which offer a more efficient and cost-effective approach to litigation. Mediation, in particular, is a valuable tool for conflict avoidance, allowing parties to engage in open communication and negotiate a mutually beneficial agreement. Neutral evaluation, a process in which a neutral third-party specialist assesses the strengths and weaknesses of each party's case, can also facilitate settlement.

Key benefits of mediation and arbitration in lease assignment disputes include:

• Cost savings : Mediation and arbitration can substantially reduce the financial burden of litigation.
• Time efficiency : Alternative dispute resolution mechanisms can resolve disputes more quickly than traditional litigation.
• Flexibility : Mediation and arbitration allow parties to craft creative solutions tailored to their specific needs.
• Confidentiality : Alternative dispute resolution mechanisms can maintain confidentiality, protecting sensitive business information.

Litigation Strategies

While alternative dispute resolution mechanisms can be effective in resolving lease assignment disputes, litigation may be necessary when negotiations break down or the parties' interests are fundamentally at odds, requiring a more formal and adversarial approach to dispute resolution. In such cases, a well-crafted litigation strategy is vital to achieving a favorable outcome.

Effective litigation strategies in lease assignment disputes involve careful trial preparation, including thorough document review, witness preparation, and specialized testimony. Skilled attorneys must develop a deep understanding of the lease agreement, assignment terms, and relevant legal precedents to build a compelling case. In the courtroom, effective advocacy and persuasive storytelling are vital to persuading judges and juries. Courtroom tactics, such as strategic questioning and evidence presentation, can greatly impact the outcome of the case. Additionally, attorneys must be prepared to respond to unexpected developments and adapt their strategy accordingly. By combining meticulous preparation with adept courtroom skills, parties can increase their chances of success in lease assignment litigation.

Frequently Asked Questions

Can a lease assignment be terminated by the landlord?.

A lease assignment can be terminated by the landlord if the assignee breaches Landlord obligations or if the Lease duration is exceeded, allowing the landlord to regain possession of the property.

Is a Lease Assignment the Same as a Sublease?

A lease assignment and sublease differ in contractual distinctions, as an assignment transfers all rights and liabilities, whereas a sublease creates a new, separate agreement, shifting liability between parties.

What Happens to the Security Deposit in a Lease Assignment?

In a lease assignment, the security deposit typically remains with the original landlord, who is responsible for refunding the deposit to the assignor. Alternatively, the deposit can be transferred to the assignee, facilitating a smooth handover and avoiding potential disputes over deposit refunds.

Can an Assignee Assign the Lease Again to Another Party?

In a successive assignment, an assignee may reassign the lease to another party, but this secondary assignment does not extinguish the original assignee's privity obligations, which remain intact and binding.

Is a Lease Assignment Considered a Novation of the Original Lease?

A lease assignment is not inherently a novation of the original lease, as it does not extinguish the original contractual obligations; rather, it transfers rights and duties, with the assignee assuming liability, while the assignor remains liable, pending contractual or legal precedent modifications to lease obligations.

A lease assignment agreement is a contractual arrangement where the original tenant (assignor) transfers their rights and obligations to a new tenant (assignee). This agreement outlines the terms and conditions of the assignment, including the effective date, rent, and lease duration.

Assignor and Assignee Rights and Obligations

The assignor and assignee have distinct rights and obligations. The assignor is released from liability, while the assignee assumes the lease obligations. The assignee is entitled to occupy the premises and enjoy the benefits of the lease.

Landlord consent is typically required for a lease assignment. The landlord may withhold consent if the assignee lacks financial stability or has a poor credit history. The approval process may involve a thorough review of the assignee's credentials.

A lease assignment may involve amendments to the original lease terms and conditions. The parties may renegotiate the lease duration, rent, or other provisions to reflect the changed circumstances.

Lease assignment agreements often include liability and indemnification provisions to protect the parties from potential claims. The assignor and assignee may agree to indemnify each other against breaches of the lease terms.

Disputes arising from lease assignments can be resolved through alternative dispute resolution mechanisms, such as arbitration or mediation. Litigation may be necessary in cases where the parties fail to resolve their disputes amicably.

Lease assignments involve complex legal considerations. Careful attention to the assignment agreement, landlord consent, and lease term amendments is essential to ensure a smooth transfer of lease rights and obligations.

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Commercial leasing: assigning or subleasing – what’s the difference

The terms assigning and subleasing are often used in a commercial leasing context, to refer to when a tenant transfers their rights under a commercial lease to another party.  It is important to understand the distinctions between them and how they might be relevant in different situations, so that you can make sure you have the right arrangement in place in your circumstances.

Assigning a Lease

A tenant may want to sell their business or move to other premises, but if their lease has not come up for expiry yet they will not be able to terminate it.  Instead, they might need to assign their lease to the party who buys the business, or to a new tenant.

Landlord’s consent

Assigning a lease requires the landlord’s written consent.  Tenants often assume that it will be easy to get the landlord’s consent, but a landlord is likely to want to know (and is entitled to know) all about the new tenant including their financial situation, the nature of their business, and conducting reference checks. 

Essentially the landlord wants to make sure that the new tenant will be in a position to pay the rent and meet their obligations.  It is helpful for the original tenant to provide the landlord with as much information as possible about the prospective tenant when asking for consent.

Although they can conduct thorough due diligence on a prospective tenant, the landlord cannot unreasonably withhold their consent, nor can they ask for any extra payment in order to give their consent.  If a tenant has concerns about what their landlord wants in order to give consent, they should seek legal advice as soon as possible before agreeing to the landlord’s demands.

To formalise the assignment, a written Deed of Assignment of Lease needs to be completed and signed by all parties including the landlord. 

Original tenant’s liability

On a day-to-day basis the new tenant takes on all of the lease obligations.  However, the original tenant (and any guarantors to the lease) will remain liable under the terms of the lease until such time as it is terminated, varied, or renewed beyond the original renewal rights.

This means that should the new tenant fail to meet any of their obligations (for example if they get behind in their rent payments), the landlord could come after the original tenant and/or their guarantors.

What if the tenant does not have the landlord’s consent?

This can be very serious.  The original tenant will likely be in breach of their lease, as most leases will specifically require them to obtain the landlord’s consent to an assignment.  The landlord will be entitled to take action against the original tenant for the breach (for example to recover its losses). 

A sublease differs from an assignment of lease in that the original tenant (the “head tenant”) continues to be responsible for all of the lease obligations, but a subtenant is occupying the premises and paying a contribution towards the rent. 

Subleasing is common where a head tenant is not using all of their leased premises, and wants to make some additional money by subleasing a portion of the leased premises to a third party without giving up their own lease (the “head lease”) altogether.  By way of a Deed of Sublease, a subtenant agrees to pay rent for part of the premises, often a specific portion of a total area marked out on a floor plan, directly to the head tenant.

A head lease will often specify that the landlord must consent to a sublease.  It is best to ensure that this consent is recorded in writing in the Deed of Sublease.

If the subtenant is going to use the premises for a business use that differs from the head tenant’s as recorded in the head lease, then that new use must be disclosed to the landlord as part of obtaining their consent, and recorded in the Deed of Sublease as a variation of the head lease terms.

Head tenant’s liability

The head tenant remains liable to the landlord for the entire premises, even if a portion of that has been subleased. If a subtenant fails to make payments, the head tenant should take legal advice as soon as possible.   

The subtenant must comply with the terms of the head lease as well as their own sublease arrangement, so it is essential that they receive a copy of the head lease at the outset.  A subtenant should not sign a subleasing agreement without having reviewed the head lease first, otherwise they may find themselves with obligations they cannot fulfil.

Tenants wanting to sublease should make sure that their proposed subtenant is reliable and able to meet their obligations under the sublease arrangement.  This can include asking for financial information and conducting reference checks with the subtenant’s permission. 

Share responsibilities

If the head tenant is subletting only part of the premises, it may be necessary to consider how responsibilities relating to the lease are shared – for example access, insurance, and utilities.  Responsibilities may be shared between the landlord, head tenant and subtenant.  The agreed arrangement should be recorded in writing in the Deed of Sublease to avoid any doubt between the parties.

If you want to enter into an assignment or subleasing arrangement, or have concerns about your commercial lease, talk to your legal advisor to find out what is best for you.

Claire Tyler Commercial Lawyer Wellington

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If you are a New Zealand Super Gold Card Holder (Australian Senior Cards do not qualify) we will give you a 75% discount of the fee for one of our set fee 1 hour initial consultations. We will also give you a 17.5% discount off the first matter we handle for you and then 12.5% off any subsequent matters for you.  These discounts relate to your personal matters only (i.e. not business, trust or organisational matters or the sale and purchase of investment properties).

To receive the discount please let us know if you are a New Zealand Super Gold Card Holder.

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Our team of lawyers is comprised of a wide range of experienced and skilled barristers and solicitors, meaning we have experts in nearly all legal fields.

We provide legal representation/advice in fields such as:

• litigation/dispute resolution
• employment law
• all aspects of property law from buying and selling properties, leasing and resolving property-related disputes
• setting up a family trust
• commercial law
• Māori legal issues
• all aspects of family law including relationship property and child related matters
• contested estates
• body corporates
• construction
• highly efficient debt collection NZ-wide for our full range of clients.

Our firm is a proud member of NZ Law Limited, a leading nationwide network of law firms who share knowledge and legal resources, which assists us to continue to develop the quality of our services.

Rainey Collins Lawyers is one of New Zealand's top law firms comprised of a wide range of experienced and skilled barristers and solicitors, making us experts in nearly all legal fields.

We provide litigation, legal representation and advice in fields such as employment law, buying and selling properties, setting up a family trust, commercial law, property law, Māori land, family law, relationship property, body corporates and construction. In addition to these legal services, we also provide highly efficient debt collection New Zealand wide for clients from large companies right through to small businesses and individuals.

Based in New Zealand's capital, our firm has a prime position in taking on cases not only from Wellington, but from all over Aotearoa, having helped a wide range of clients for over 100 years.

Level 14  318 Lambton Quay  Wellington

Phone: 04 473 6850 Email: [email protected]

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