What happens when there is a complete transfer of the remaining term of a lease, resulting in privity of estate with liability to the landlord?

What happens when there is a complete transfer of the remaining term of a lease, resulting in privity of estate with liability to the landlord?

• A. Assignment (Prop)
• B. Sublease (Prop)
• C. Eviction (Prop)
• D. Marketable Title (Prop)

Answer: (A)

Transferring the entire remaining term of a lease is an assignment, which brings the landlord into privity of estate with the new tenant and makes that party liable to the landlord under the lease. When the lease is assigned, the assignee takes over the leasehold for the rest of the term and becomes the primary party responsible for rent and performance. The original tenant, unless the landlord agrees to a novation, often remains liable in privity of contract, but the landlord’s relationship for possession shifts to the new tenant in privity of estate. This differs from a sublease, where the original tenant still talks to the landlord under the original lease and remains in privity of contract, while the subtenant merely gains rights to possess from the original tenant and does not become the landlord’s direct tenant. Eviction and marketable title refer to unrelated concepts—eviction concerns removing a tenant, and marketable title concerns ownership, not lease transfer.

Transferring the entire remaining term of a lease is an assignment, which brings the landlord into privity of estate with the new tenant and makes that party liable to the landlord under the lease. When the lease is assigned, the assignee takes over the leasehold for the rest of the term and becomes the primary party responsible for rent and performance. The original tenant, unless the landlord agrees to a novation, often remains liable in privity of contract, but the landlord’s relationship for possession shifts to the new tenant in privity of estate.

This differs from a sublease, where the original tenant still talks to the landlord under the original lease and remains in privity of contract, while the subtenant merely gains rights to possess from the original tenant and does not become the landlord’s direct tenant. Eviction and marketable title refer to unrelated concepts—eviction concerns removing a tenant, and marketable title concerns ownership, not lease transfer.