leasing

assignment of lease

An assignment of lease occurs when a tenant transfers the entire remaining interest in a lease to a new tenant, called the assignee, who then deals directly with the landlord and pays rent to the landlord. Unless the landlord releases the original tenant, that tenant usually remains secondarily liable. Many leases require the landlord's consent before an assignment. If the tenant transfers only part of the term or space, it is a sublease.

Exam tip
Assignment transfers the whole remaining term; sublease transfers part. In a sublease the original tenant stays primarily liable and collects rent from the subtenant.
Example
A tenant with 18 months left on a lease moves away and, with the landlord's consent, assigns all 18 months to a new tenant.

Related terms & state variants

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Last verified: 2026-10-23