Lease assignment is when a tenant transfers their lease to another party, while subletting allows the original tenant to retain some rights and responsibilities. The original tenant does not intend to return to the leased property in a lease assignment. Landlords must be notified of lease assignments, and they can object to a prospective tenant.
When a tenant transfers the rights and responsibilities included in their lease to another party, this is called a lease assignment. This situation can occur when an individual needs to go out of town for some reason and cannot maintain rent on the leased property. Likewise, it can occur when a tenant needs an exit from the lease because of financial difficulties. In most places, lease assignment is only legal if the lease terms allow it or if the landlord agrees to this agreement.
People often confuse a sublet situation with a lease assignment. These legal agreements are similar in that they both allow the original tenant to get out of at least some of the responsibilities of their lease. In a sublease, however, the original tenant still retains some of the rights and responsibilities mentioned in their lease. For example, if the new tenant fails to pay rent, the original tenant may still be required to pay rent to the landlord. With a lease assignment, the new tenant can assume all the responsibilities agreed upon by the original tenant, including paying the rent directly to the landlord.
When an original tenant signs a lease assignment, he is essentially transferring ownership of the leased property to a new tenant. Unlike a sublet situation, the original tenant does not intend to return to the leased property and take possession of it once again. Furthermore, the original tenant need not fear a lawsuit if the new tenant damages the property or is unhappy with the lease. Depending on the terms of the lease, all of your legal ties to the property may end with the signing of the lease assignment.
Laws regarding lease designations may vary depending on the jurisdiction in question. In many cases, however, a person wishing to assign his lease to another party must notify the landlord of the intent prior to signing a lease assignment. The individual can then advertise the property and interview candidates to take over their lease.
Once the original tenant has chosen a suitable candidate, he can notify the landlord of his choice. In some places, a landlord can object to a prospective tenant if he has a valid reason to do so. For example, if the landlord feels that the prospective tenant is financially irresponsible or unable to pay the rent, he or she may turn the tenant away. If all goes well, on the other hand, the original tenant signs a lease assignment agreement with the new tenant.
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