difference between assignment and subletting in construction

Advanced Search
Search by Map
Property Tracker
Luxury Homes
TREG's Open Houses
TREG's Featured Listings
Hampton Roads
All Communities
Isle of Wight
Newport News
Virginia Beach
Williamsburg Area
Williamsburg
Charles City County
Gloucester County
James City County
King William County
New Kent County
York County
North Carolina
Camden County
Chowan County
Currituck County
Elizabeth City
Gates County
Outer Banks
New Homes Search
All New Homes
Virginia New Homes
North Carolina New Homes
Virginia Beach New Homes
Chesapeake VA New Homes
Norfolk VA New Homes
Suffolk VA New Homes
Featured New Home Communities
Cedar Glen - Chesapeake VA
The Mainsail - Norfolk VA
The Retreat at Harbour Cove - Suffolk VA
Woodford Estates - Chesapeake VA
Ashville Park - Virginia Beach
Property Management Services
TREG's Featured Rentals
Resident Portal
Owner Portal
Our Offices
Meet Our Agents
Careers in Real Estate
TREG Employment Opportunities
MIlitary Relocation
Corporate Relocation
Worldwide Relocation
Atlantic Bay Mortgage Group
Landmark Title
2-10 Home Buyers Warranty
Old Republic Home Protection

Assignment vs Subletting - What is the difference?

Assignment vs subletting – what are the differences.

difference between assignment and subletting in construction

Assigning a residential lease agreement and subletting are two distinct ways of transferring tenancy rights in a rental property, each involving different legal and practical implications. Here’s a breakdown of their differences:

Assignment of a Residential Lease Agreement:

Definition:

Transfer of Responsibility: Assigning a lease involves transfer of the original tenant’s entire interest in the lease to a new tenant. The original tenant ceases to have any rights or obligations related to the property.

Consent from Landlord: Typically requires the landlord's explicit permission or consent. The landlord is often involved in vetting and approving the new tenant.

Replacement Tenant: The original tenant may find a replacement (assignee) who takes over the lease entirely. The landlord may also market for a new tenant and vet any potential replacement tenants.

Legal Responsibility:

Liability: The assignor (original tenant) is usually released from all liabilities and obligations once the lease is assigned to the new tenant. This may key off of the new tenant taking possession of the rental unit.

Direct Relationship with Landlord: The new tenant (assignee) becomes directly responsible to the landlord for rent payments, property maintenance, and adherence to lease terms by effectively “stepping into the shoes” of the departing tenant.

Implications:

End of Original Tenancy: For the assignor, once the lease is assigned, their association with the property generally ends. They may not have recourse if the assignee defaults on payments or breaches the lease.

Subletting of a Residential Lease Agreement:

Partial Transfer: Subletting occurs when the original tenant rents out all or part of the property to a subtenant while retaining some rights and responsibilities under the original lease.

Consent from Landlord: Usually requires the landlord's permission, as outlined in the lease agreement. Some leases explicitly prohibit subletting.

Ongoing Relationship with Landlord: The original tenant (sublessor) maintains responsibility to the landlord for lease obligations.

Obligations: The sublessor remains responsible for rent payments and adherence to lease terms, acting as an intermediary between the landlord and subtenant.

Relationship with Subtenant: The sublessee has a legal relationship with the sublessor rather than the landlord. The sublessee must adhere to terms agreed upon in the sublease.

Ongoing Responsibility: The original tenant (sublessor) remains liable to the landlord for the property and its condition. They're responsible for any damages or lease violations caused by the sublessee.

Continued Tenancy: The original tenant maintains an ongoing relationship with the property and the landlord.

How Much Would Your Home Rent For?

Key Differences:

Transfer of Responsibility: Assigning a lease completely transfers the tenant's interest to a new tenant, while subletting involves the original tenant retaining some rights and responsibilities.
Direct Relationship : In assignment, the new tenant has a direct relationship with the landlord, whereas in subletting, the original tenant maintains this relationship.
Liability and Obligations: Assigning a lease typically releases the original tenant from obligations, while subletting keeps them responsible for the property.

Both assignment and subletting can offer flexibility to tenants but come with distinct legal and practical implications that tenants and landlords should carefully consider before proceeding. Understanding these differences helps individuals choose the appropriate option based on their circumstances and lease agreement terms.

In most cases, assignment is the best course as it avoids the main pitfall of subletting, namely that the subletting tenant has no direct relationship or responsibility to the landlord/owner of the rental unit. For that reason, professional property managers normally recommend termination of the original lease and negotiation of a new lease with the replacement tenant. The outgoing tenant will normally absorb some of the costs associated with securing a replacement and the property manager makes sure the turnover is handled property. Having experience when these issues arise is important to protect the landlord’s interests. If you need management of an investment property, call one of our managers today to learn why so many landlords believe TREG is the RIGHT CHOICE for property management.

Mold Prevention in Rental Properties

The importance of preventing mold in rental properties cannot be overstated. Mold not only poses potential health risks but ...

Posts By Category

Posts by month, search our agent directory.

Hampton Roads Real Estate
Chesapeake Real Estate
Hampton Real Estate
Isle of Wight Real Estate
Norfolk Real Estate
Portsmouth Real Estate
Suffolk Real Estate
Virginia Beach Real Estate

New Home Communities

Hampton Roads Complete New Construction Resource.

Bertie Real Estate
Camden County Real Estate
Chowan County Real Estate
Currituck County Real Estate
Edenton Real Estate
Elizabeth City Real Estate
Gates County Real Estate
Hertford Real Estate
Pasquotank County Real Estate
Perquimans County Real Estate

Luxury Homes & Lifestyles

Oceanfront & Bayfront. Country Clubs. Equestrian / Horse Farms. Luxury Condos. See them all.

Chesapeake Townhouses for Sale
Hampton Townhouses for Sale
Virginia Beach Townhouses for Sale
Chesapeake VA Condominiums
Hampton VA Condominiums
Norfolk VA Condominiums
Suffolk VA Condominiums
Virginia Beach Condominiums
Birdneck Point
Broad Bay Colony
Heron Ridge Estates
Linkhorn Cove
Linkhorn Estates
Point Chesapeake on the Bay
Trant Berkshire
Witchduck Point
Avon NC Real Estate
Buxton NC Real Estate
Duck NC Real Estate
Frisco NC Real Estate
Hatteras NC Real Estate
Kill Devil Hills NC Real Estate
Kitty Hawk NC Real Estate
Manteo NC Real Estate
Nags Head NC Real Estate
Rodanthe NC Real Estate
Salvo NC Real Estate
Southern Shores NC Real Estate
Wanchese NC Real Estate
Waves NC Real Estate

Find out why so many landlords and seasoned investors think TREG is the RIGHT CHOICE for property management.

Chesapeake Property Management
Norfolk Property Management
Portsmouth Property Management
Suffolk Property Management
Virginia Beach Property Management

The Real Estate Group Customer Reviews

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.

Landlord Tenant Law

3 Methods of Resolving Landlord Tenant Disputes
Federal Fair Housing Act - Avoiding Discrimination
Security Deposit Laws for All U.S. States
U.S. State Laws on the Return of Security Deposit
Sublet Laws - Subletting Laws for All U.S States
Assignment of Lease and How it Differs from Subletting
Guide to Commercial Landlord Tenant Law
How to Find a Good Real Estate Lawyer
What to Look for When Hiring a Real Estate Attorney

Becoming a Landlord

Buying Rental Property
Financing Properties
First Time Landlord
Property Manager Career
Managing Tenants
Tenant Screening
Tenant Credit Check
Rent Payment
Security Deposit
Property Maintenance

Landlord Tenant Rights

Types of Tenancy
Breaking a Lease
Section 8 Landlord

Accounting & Taxes

Landlord Insurance
Landlord Accounting
Rental Property Tax
Landlord Resources
Landlord Software
Landlord Tenant Forms

Ryan Rauner's Real Estate Blog

The abcs of cre.

Assignment vs. Subletting: What’s the Difference?

According to the Bureau of Labor Statistics, 20% of small businesses fail in their first year, 30% fail in their second year, 50% fail after five years, and 70% of small business owners fail in their 10th year in business. Yikes! Despite these grim statistics, commercial leases are generally a minimum of 5 years and contain severe, default penalties. In some cases, landlords will require the tenant to personally guarantee the lease, effectively using the tenant’s personal assets, i.e. home, as collateral to secure the lease.

Most tenants understand the implications of defaulting on their lease and enter into the agreement, eyes-open, and with every intention of abiding by the terms and conditions. The road to hell (and default) are paved with good intentions. Economic downturns, lost contracts/clients, sequestration, etc. can disrupt even the best laid plans; leaving tenants struggling or unable to meet their monetary obligations under their lease. In such cases, tenants’ most powerful tool/strategy to avoid default is to sublease or assign their lease.

Most, if not all, commercial leases contain Assignment and Sublease provisions and while the specific language and conditions can vary there are general, shared principles. Subletting and assigning are similar in that they both involve a transfer of the tenant’s right or interest in the lease that allow another (3 rd ) party to occupy the leased premises. Under the terms of most lease agreements the original tenant will remain responsible for the terms of the lease in the case of either a sublease or an assignment. This means that the landlord can proceed against the tenant in the case of a default by the subtenant or assignee; including but not limited to, rental payments, damage to the leased premises, etc. As a result, it is in both the tenant and landlord’s interest to carefully vet the proposed subtenant or assignee.

If subleases and assignments are similar in that they essentially allow the tenant to “rent out” their space to a 3 rd party, what’s the difference ?

Under a sublease, the tenant is either (sub)leasing a portion of the leased premises for the remainder of the lease term, all of the leased premises for a portion of the lease term, or a portion of the leased premises for a portion of the lease term. Subleases do not necessarily indicate financial hardship on behalf of the tenant or a likelihood of default. In fact, in some cases, companies may choose to lease more space than needed upon the lease commencement date in order to reserve the space for future growth. This is more common with large companies, i.e. Google, that can afford the lease payments but may seek to reduce expenses by subleasing the unused space. Another situation in which a tenant may request to sublease their space is in the case of a downsizing, consolidation, etc. where the they no longer need their entire space but do not want to move and can offset their rental obligations by renting the unused portion to another party.

Under a lease assignment, the tenant transfers all of its rights and responsibilities under the lease to the assignee along with its right to occupy the entire leased premises for the remainder of the lease term. A lease assignment is a much more serious request on behalf of the tenant than a request to sublease the space. While not always the case, a request to assign the lease may indicate that the tenant is unable or unwilling to continue to make lease payments and is likely to default on its lease then or at some point in the future. As stated earlier, most leases require the original tenant to remain liable for the lease (payments, responsibilities, etc.); however, with lease assignments the landlord may release the tenant and enter into a direct relationship with the assignee. The landlord’s decision will be based on a number of factors, most notably the financial strength of the assignee and the difference between the contract rent and market rents. Assignments are not necessarily indicative of financial trouble and can simply be the result of tenants relocating or consolidating; resulting in them no longer needing the leased premises.

Register now for your free, tailored, daily legal newsfeed service.

Find out more about Lexology or get in touch by visiting our About page.

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.

Filed under

Real Estate
LegalVision

Related practical resources PRO

How-to guide How-to guide: Understanding key data protection definitions (EU)
Checklist Checklist: What to consider to ensure a contract is valid (USA) Recently updated
Checklist Checklist: Pre-appointment checks to consider when selecting an appointed representative (UK)

Related research hubs

Misspellings

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.

Content Creators

Popular Comparisons

Trending Comparisons

New Comparisons

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.

Request a Free Survey

*Indicates a Required Field

First Name *

Last Name *

Company Name *

Phone Number

County * County * Pasco Hillsborough Pinellas Sarasota Manatee

Type of Space* Type of Space* Office Industrial Flex Medical

Estimated Square Feet

Special Requirements or Message

Construction Claims & PM Consultants

Pros and Cons in Subletting, Designation, Assignment, Nomination and Novation in Construction Contracts

By Dr. Chandana Jayalath Sub letting reduces dependency on directly employed labour. It results non-wage cost of employment such as redundancy payment and offsets the risk associated with the responsibility by transferring them. Sub letting is necessary when to employ specialists of proven reliability and repute to face technical complexity involved in a project. There are two distinctly different modes of sub letting that everyone is known to; domestic and nominated.

The domestic subcontract is a direct contract between a sub-contractor and the main contractor where the sub contractors are treated as an internal composition of the main contractor for the purpose of responsibility. This is a form of letting sub-contracts whilst giving the employer some choice where the main contractor is given a list of names of sub-contract companies to whom he may go for that package of works. Usually, the employer may reasonably expect the contractor to progress the work on a domestic sub contract basis with one of the sub contractors put forward by the main contractor. The contractor should be allowed to entertain the benefit of any pre-agreed rates and prices in their domestic sub contract without justifiable objection.

However, the contractor shall not sub-let whole of the works. The ‘subletting’ clause further prohibits sub contracting any part of the work without the engineer’s consent, or unless the contract expressly permits. Engagement of labour on piecework basis is not a subletting by definition so that the contractor does not require consent for provision of site labour. Regardless of any consent, the contractor will be fully liable for the defaults of the sub contractor as if they were the defaults of the contractor himself. Sub contracting with the approval of the engineer does not relieve the contractor of any of his obligations and liabilities whatsoever, which inter-alia refers to quality, workmanship, time, cost and other obligations, whether express or implied. The general principle is that the contractor is responsible for performance of his obligations and cannot excuse his breach by reference to having sub-contracted that part of his performance. This means that the contractor is responsible for performance of all his obligations under the contract who may delegate performance but not responsibility, of course subject to express terms of the contract.

Hence, the contractor must ensure that the works are sub contracted on legal agreements binding the sub contractor in all obligations under the main contract in so far as they are applicable to his part of work. The sub-contract is then intended to create a contractual relationship between parties, in order to allow the contractor to perform part of his obligations under the main contract. Insofar as the sub-contract is intended to create legal relations, it is subject to the same principles which apply to the formation and operation of any contract. If a contractor is to avoid introducing additional risk in sub-contracting the performance of his obligations under the contract, he must take an additional care to ensure that the terms of the sub-contract are consistent with those of the main contract.

If the contractor does sub-contract part of the works without consent, then it may amount to a repudiatory breach of contract where the employer will be discharged from further obligation under the contract including payment, since the contractor’s substituted performance will amount to non-performance. The employer will also be entitled to damages for the repudiatory breach. This applies mutatis mutandis to the contractor and sub-contractor.

In contrast, nomination is the process by which the employer nominates, selects or approves a party who will perform a subcontract or specialist trade role under a subcontract with the main contractor. It is a means for the employer to retain some control over the selection of specialist contractor without directly involved in contractual arrangements with the specialist. The employer is able to choose which company he wishes to use and that decision does not necessarily have to be based on price. The timing of the involvement and appointment of the sub-contractor is left to the employer to meet his requirements. The appointment of a nominated sub contractor does not also depend merely because a provisional sum exists.

A reservation is always existing where the contractor may make an objection on reasonable grounds against entering into a nominated sub contract when the nominated sub contractor refuses to accept the terms having a back to back effect (the like obligations and liabilities as are imposed on the contractor towards the employer by the terms of the main contract, except usually the payment terms). The objective of the sub contract is that, so far as possible, the sub contractor must discharge the obligations of the main contractor insofar as they related to the works. These obligations will be both the primary one (the execution of the work) and the secondary one (the obligation to pay damages). Nevertheless, the employer has no direct contractual relationship with the sub-contractor as the sub-contract itself is still placed by the contractor. This option may leave the unsuspecting employer with no remedy against the sub-contractor for default, and the risk of there being no recourse against the contractor either. However, in the absence of express terms to the contrary the employer may be able to place liability for the sub-contractor’s default on the contractor, who had no choice in the appointment; an outcome which many would regard as unfair. This is why the author believes in a tripartite agreement that is always better than bi-lateral.

The FIDIC recognizes that the failure of nominated sub contractor to perform can have serious consequences for both main contractor and the employer. Therefore, it is important to ensure that the main contractor is prepared to collaborate with him. Thus, the main contractor need not employ anyone against whom he has reasonable objection; or who refuses to enter into a subcontract which: is back-to-back with the main contract; and which indemnifies main contractor in respect of nominated sub contractor’s breaches and against the negligence of his workmen and misuse of any temporary works. These rights of veto are crucial, and contractors generally must not feel reluctant to exercise those rights. Thus, the main contractor can refuse the nomination if he has reasonable grounds for so doing. What is ‘reasonable’ must take account of the importance of the timing of the nomination, and the preparedness to commit to completion of its works on a date that coincides with the program.

If the main contractor declines to enter into a subcontract with nominated sub contractor, the engineer will have several alternative lines of action open to him. The engineer can nominate an alternative sub contractor to whom main contractor would not object, or omit the work that is the subject of the nomination from the main contract and have it carried out by an independent contractor as long as the contract allows.

The employer may when the identity of the subcontractor is known at the time of tender, designate a subcontractor in the contract document itself. This is a ‘designated sub-contract’ (DSC) that differs from nominated (NSC) with regard to payment provisions and objection. There are more limited rights of objection by main contractor with regard to a DSC than with regard to an NSC, on the grounds of insolvency, technical incompetence, etc.

An assignment is not a subletting, and vice versa. The underlying considerations are not the same. By assignment, the new occupant – the assignee – becomes the tenant itself. Hence, assignment is making over or transference to another the whole or part of the contract, any obligation, benefit or interest that may be derived under the contract. The ‘assignment’ clause restricts the contractor to make such assignment in full or partial without prior written consent of the employer, except the routing of the monies due under the contract to the contractor’s bankers. Any attempted assignment without consent is therefore amounts to claims by the employer. A contractor who decides to assign without approval therefore takes the risk of his employment being terminated. However, the employer’s consent shall not be unreasonably withheld or delayed and it is also necessary for the employer to remain in a strong position contractually in order to withhold his consent from an assignment.

Assignment differs from novation (discussed later in this article) in so much that the parties to the contract do not change where privity of contract still exists between the parties. The consent of the third contracting party is not necessary. So, a party to a contract (the assignor) is able to transfer the benefit of a performance he is to receive under that contract to another person (the assignee) who is able to enforce performance in his own right, without the consent of the other party (the debtor). Accordingly, a burden of a contract simply cannot be assigned without the consent of all parties simply because the equity acts so as to keep things fair.

There is always an express prohibition against an assignment. The making of an assignment is not a breach of contract because it is an act without legal effect. The assignment is ineffective unless a later consent is given. It is common in leases for a prohibition against assignment save with consent, not to be unreasonably refused. If consent is not sought, it can not be said to have been unreasonably refused. It is no answer that no reasonable objection could have been made had consent being sought.

Probably the most common use of assignment is in relation to collateral warranties. The collateral warranties given by consultants, contractors and sub-contractors are often assigned to subsequent owners or leases. Assignment can do no more than transfer rights available to the assignor; it is not capable of creating new rights in favour of an assignee. Thus while the employer can in theory assign the right to have a building adequately designed for instance, it is unclear what right would be transferred to sue for damages in the event of breach.

The obligations of the contractor are vicariously performed by sub contractors. However the contractor could unless there is a prohibition, assign to another the benefit of the contract. If a contractor has so assigned his rights, there are obvious dangers of solvency and inability to actually complete the works, which is why such assignment is often discouraged. When there is such a restriction on assignment, and a contractor has nevertheless assigned the benefits of the contract, the assignee can not enforce its rights to receive payments with a third party to account to him for the benefits he receives from the other contracting party.

Under an assignment, the parties to a contract will not change. The transfer will only involve the benefit, not the burden, of a contract. It is an exception to the usual legal rule in that a person who is not a party to the contract is permitted to obtain benefit from that contract. Therefore a contractor can not assign to another contractor the obligation to build and the employer can not assign another party the obligations under its contract this is not surprising otherwise any party to a contract could get out of his or her obligations by the simple expedient of an assignment. If a party to a contract wants to assign its burden, it will have to enter into a fresh contract whereby its obligations will be discharged as against the other contracting party and there will have to be an agreement between the person taking the burden of the contract and the other original contracting party that this is the case. This is novation.

A novation agreement is one by which the parties to a contract agree that one of them should be replaced by another party who will in every respect assume the rights and obligations of the outgoing party as though he had always been a party to the contract. The outgoing party is released from any liability under the contract. Novation makes for a much cleaner break than a simple assignment, especially for the assignor, since once the contract has been novated, he has no further liability under the contract. The new party, on the other hand, could be held liable for some breach of contract which occurred before he became a party to the contract but which is only discovered later. Hence, the body of this agreement usually has three elements. In the first, the new contractor (the assignee) agrees to become a party to the contract and to be bound by all its terms. In the second clause, the employer releases the outgoing contractor (assignor) and accepts the new contractor. The third clause is really there for record purposes, to show payments made to the outgoing contractor at the date of the agreement. It may also be useful to specify any amount which is owing to the employer by the contractor at the novation date and specify if the outgoing or incoming contractor will be responsible for paying it. However this situation can not be confused with the provision where the FIDIC recommends parties to find where they stand financially in a unilateral valuation at the time of contractual forfeiture. What is important is to see whether the ‘clean break’ principle has been secured when contracts are novated and in the mean time, without saying that a novation agreement is not a stand-alone document.

To accelerate or not that is the contractor’s question, two articles about delay analysis techniques, discover more from cmguide.

Subscribe now to keep reading and get access to the full archive.

Type your email…

Open navigation Close navigation
Private Office
Client Area

Expert Insights

Assignment, novation and construction contracts - What is your objective?

Consider a not too hypothetical situation where the parties to a construction project (employer, contractor and sub-contractor) enter into a Deed of Assignment intending that the employer, having lost confidence in the contractor, would directly engage the sub-contractor to complete the sub-contract works. But what if no assignment has taken place? What are the terms of the contract under which the sub-contractor carries out the works for the employer?

Potential risks with assignment

In construction projects, main contractors often assign the benefit of their key sub-contracts to the employer in the event of contractor default and consequent termination of the main contract. The employer can then enforce the rights in the sub-contract against the sub-contractor, including rectification of the works and the performance of particular obligations.

However, there are potential risks associated with assignment in these situations as the Technology and Construction Court’s decision in Energy Works (Hull) Ltd v MW High Tech Projects UK Ltd demonstrated. We discussed this decision in Assigning a sub-contract on termination: which rights is the contractor giving up? In this case, the nature of the assignment meant that the main contractor could not pursue claims made by the employer against its sub-contractor under the sub-contract. This limited the main contractor’s ability to ‘pass on’ any liability it had under the main contract to the sub-contractor.

But what if the Deed of Assignment does not take effect as an assignment?

Assignment v novation

Both assignment and novation are forms of transferring an interest under a contract from one party to another. However, they are very different and in their effect. An assignment transfers the benefit of a contract from one party to another, but only the benefit, not the burden. In contrast, a novation will transfer both the benefit and the burden of a contract from one party to another. A novation creates a new contractual relationship - a ‘new’ contract is entered into.

Another key difference with novation is that the consent of all parties concerned must be obtained, which is why novation is almost always effected through a tripartite agreement. In the case of an assignment, it is not always necessary to obtain consent, subject to what the specific terms of the contract provide.

When deciding whether to assign or novate, parties should consider (i) whether there is in fact a burden to novate, (ii) whether the novatee will be willing to take on the burden, (iii) whether all parties will consent to the novation and indeed enter into the agreement. If there is no burden under the contract to transfer, then an assignment is likely to be the most appropriate way to transfer the interests.

Is the Deed for an assignment or a novation?

Although a document may be labelled a Deed of Assignment, if it has references to the transfer of ‘ responsibilities and obligations ’ and is a tripartite agreement these are characteristic of a novation as opposed to an assignment.

A key issue in such circumstances is to ascertain whether making use of the words ‘ assigning ’ and ‘ assignment ’ actually affects the characteristics of the document.

There has been some consideration of this characterisation issue by the courts. In the case of Burdana v Leeds Teaching Hospitals NHS Trust [2017] EWCA Civ 1980, by majority the Court of Appeal decided that on the facts of the case, although the Deed of Assignment in question referred to an ‘ assignment ’ of the benefit and burden, on proper analysis there was indeed a novation.

Furthermore, in the case of Langston Group Corporation v Cardiff City FC [2008] EWHC 535, Briggs J made it evident that even though the variation agreement in question did not use the word ‘ novation ’ and did not describe itself as such, the circumstances and effect of the agreement was indeed a novation and a new contract had been created.

It may be the case that even if a document does not describe itself as a novation, yet has the key characteristics of one, then as a matter of interpretation the courts would accept that the document takes effect as a novation.

Key characteristics of a novation

If entering into a document that purports to be a Deed of Assignment, tread carefully as it may well take effect as a novation, particularly if the following characteristics are present:

It is a tripartite agreement;
All the parties give their consent;
The novator has been released from its obligations;
There has been an acceptance of the terms of the novation on the part of the novatee and the substituted party; and
There is a vesting of remedies.

What is your objective?

Although a document may well be labelled as an assignment, it may have the characteristics of and take effect as novation. Parties need to be cautious and consider what they want to achieve when assessing whether to assign rights or to novate them along with obligations.

This article was written by Anna Sowerby and Eveline Strecker. For more information, please contact Anna or your usual Charles Russell Speechlys contact.

Our thinking

CTBUH Annual Conference: Mastering ESG Challenges and the Launch of the Global In-House Counsel Assembly

Kerry Stares

IBA Annual Conference 2024

Charlotte Ford

How the forewarned ‘hike’ on private school fees is going to bite – a family law and Private Office perspective

Jemimah Fleet

Quick Reads

Agricultural Holdings: Changes to succession rules are now in effect

Helena Taynton

Asian Private Banker quotes Dominic Lawrance and Julia Cox on anticipated tax changes in the UK

Dominic Lawrance

In the Press

Mark Howard writes for the Financial Times’ Your Questions column on the pros and cons of becoming a non-executive director

Mark Howard

Choosing the applicable law for a Construction Contract – the case for ‘the law of the DIFC’

Charles Russell Speechlys advises Mirova on its $20 million debt funding to ManoCap Energy

Daniel Sullivan

Summer 2024 Deal Roundup

David Coates

Recent developments in directors’ liability in the UAE and England & Wales

Removing A Trustee From a Trust

Lydia Kember

Benoît Pasquier and Alex Needham write for City AM on ensuring a more equitable future at the Olympic Games

Benoît Pasquier

Regime change: The beginning of the end of the remittance basis

Oasis and the Often Overlooked Benefit of Dynamic Pricing

Q&A: What evidence can establish boundaries?

Chandni Pandya

Estates Gazette, New Civil Engineer and BE News quote David Savage on the Grenfell Phase 2 Inquiry report

David Savage

Property Week quotes James Souter on a legal case relating to Annington Properties and the Leasehold and Freehold Reform Act

James Souter

Thomas Moran and Ruth Morris write for Prime Resi on the future of London's prime property market

Thomas Moran

Budgeting for change: what should Landed Estates be doing before the Budget?

FCA Consultations on prospectus regime

Jodie Dennis

New Construction + Condos
Affordable Housing
Negotiating + Financing
How to Buy in NYC Guide

Roommates + Landlords
How to Rent in NYC Guide

In Manhattan, a glimpse at a New York city residential building, with its famous exterior fire escape staircase.

Staging + Open Houses
Negotiations + Closings
Getting Ready
How to Sell in NYC Guide

Aerial shot of Manhattan, New York City, taken from above the Upper West Side on a sunny afternoon in summer.

Kids + Pets
Neighborhood Intel
Products + Test-drives
Troubleshooting

Small Spaces
Small Projects + DIY
Renovations
Design + Architecture
Products + Services
How to Renovate in NYC Guide

Woman on the phone to a plumber about a leaking sink

Boards & Buildings
Property Management
Structure & Systems
Sustainability

Advertise with us
Sponsored Content

Find Your Next Place

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."

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.

New York City on a hazy day in summer, following traffic on Nostrand Avenue in Crown Heights, Brooklyn.

To read this content please select one of the options below:

Please note you do not have access to teaching notes, assignment vs subletting: do you care which you use why.

Journal of Corporate Real Estate

ISSN : 1463-001X

Article publication date: 1 October 2002

From time to time, clients ask counsel and brokers about the pros and cons of using an assignment versus a sublease to effect a transfer of possession and a transfer of obligations with respect to leased premises. With about equal frequency, questions come up regarding the differences between assignments and subleases, and ‘whether those differences really make a difference’ after all is said and done. While assignments and subleases are both means to achieve substantially similar ends, they do yield different legal and business results. The purpose of this paper is to explain and discuss some of the similarities and some of the distinctions between assignments and subleases, both from a legal perspective and from business and practical perspectives, and to discuss some of the reasons that the different parties involved in such transactions may prefer, or wish to select one of these transaction forms over the other.

Landlord/tenant

Skinner, P.G. , Schear, A.J. and Katz, S.S. (2002), "Assignment vs subletting: Do you care which you use? Why?", Journal of Corporate Real Estate , Vol. 4 No. 4, pp. 357-364. https://doi.org/10.1108/14630010210811958

All feedback is valuable.

Please share your general feedback

Report an issue or find answers to frequently asked questions

Contact Customer Support

Subletting vs Subleasing: Understand the Differences and Make the Right Choice

A living room with large windows and a colorful rug available for subletting.

Figuring out the world of leasing can be more than a tad overwhelming. You might have encountered some confusing terminology, and you’re wondering, “What is subletting?,” “What is a sublease?,” or perhaps, “What does sublet mean?” And most importantly, when comparing sublet vs sublease choices, which is better for your particular scenario?

In this easy read, we’ll tackle what’s what in the question of subletting vs. subleasing, consider the pros and cons of each option, and provide helpful tips for a smooth leasing experience. So, let’s cut to the chase and get right to business!

Subletting vs Subleasing: The Tale of Two Tenants

One is often mixed up with the other. And why not? Both subletting and subleasing do mean the same thing. A tenant rents out the property they are temporarily renting to another tenant. If you are the latter, you’ll eventually discover that distinction somewhere in the specifics of the lease, and this is what we’ll illustrate.

Subletting, in the most simple terms, is when the original tenant (let’s call him Alex) rents out their property to you. At the same time, Alex still holds onto some rights and obligations under their original lease. This could include the entire property or just a part of it. He intends to return to the property once your tenure ends. It’s like living at a friend’s home until they get back from their sabbatical.

Now, you might ask, “What is subleasing then?” If it sounds like a twin to subletting, you’re not entirely wrong. Subleasing, however, is when Alex decides to move on forever and transfers all his lease responsibilities to you. In this scenario, Alex is out of the picture, and you are in charge. So, in a way, a sublease is more permanent than a sublet.

Benefits and Drawbacks

Now, let’s consider the perks and downsides of each. First up: subletting.

Pros of Subletting:

1. flexibility galore.

Subletting offers oodles of flexibility for both the original tenant and the sublessee, allowing for shorter stays. You can even extend your arrangement if you have to.

Looking for the ultimate flex? Get the convenience of subletting and more with Anyplace , a housing rental platform specially designed for the work-from-anywhere generation or those who want to combine work and travel. We know you’re “going places,” and this is why you can book at Anyplace for as little as 30 days. Absolutely no tedious monthly leases are required. You can even extend your stay at any time. So, whether it’s 32, 45, or 90 days, you’re covered.

2. Location, Location, Location

Through subletting, you gain access to fab locations and properties that might not be typically available through traditional leasing channels.

With Anyplace, scoring an amazing rental is a no-brainer. Our luxe apartments are spread all over the key business hubs of Los Angeles , San Francisco , San Diego , and New York City . You’ll never have to worry about running out of temporary housing options in some of the best metropolises, be it for work or play.

3. Furnishings Here, There, and Everywhere

Although many sublets do come furnished, you’re almost always likely to find something that’s not quite to your liking nor matches your expectations. You may end up wasting precious hours shopping for items you aren’t likely to take along with you on your next move.

At Anyplace , we know your every minute counts. That’s why all our apartments are move-in ready, complete with a fully-equipped home office and high-speed internet for your fast-paced lifestyle. You just have to show up, and voila, you can hit the ground running.

Yet, Anyplace rentals aren’t just your typical turnkey apartments. Beyond traditional furnishings, we offer top-notch amenities, such as a stocked kitchen, an in-unit washer and dryer, and much more. You won’t be lacking in anything, even with your discerning tastes.

Cons of Subletting:

1. legal loop-de-loops.

The million-dollar question: “Is subletting illegal?” The answer: It’s complicated. That’s because a lot depends on what the lease agreement and local laws say. So, before diving into a sublet arrangement, take a closer look at any of its prohibitions.

If you don’t want the hassle of second-guessing (because who does?!), then Anyplace is your place. We can help you overcome potential legal hurdles and survive the maze-like paperwork associated with subletting or subleasing. No worries—only absolute peace of mind.

2. Limited Power

As someone renting a sublet, you may have fewer responsibilities but also limited rights when it comes to maintaining the property or handling issues during your stay. Kind of iffy, right?

But with Anyplace, we offer the kind of security that delivers peace of mind. We’ve partnered with Jacob Street, so you automatically get short-term insurance coverage every time you book any of our furnished apartments.

Pros of Subleasing:

1. lease handoff.

As the new tenant when you sublease, you are able to enjoy the lease rights of the original tenant, which are transferred to you. These can include access to amenities, parking spaces, and other benefits outlined in the lease agreement.

But the thing is, with greater power comes greater responsibility (kind of the flipside of subletting). Taking on a sublease comes with extra baggage: the original tenant’s financial and legal responsibilities for the remainder of the lease. A “whew factor” for them—but not for you.

2. Stability

Subleasing offers a more stable and long-term housing option for those looking to settle in for an extended period. Thus, by subleasing, you can eliminate the uncertainty of frequently searching for a new place.

Cons of Subleasing:

1. less flexibility.

Subleases are typically more rigid in duration and may not accommodate shorter stays or sudden changes in plans.

But with Anyplace, you’re never tied down with flexible-term leases . That’s real freedom for you.

2. Legal Hurdles

Like subletting, subleasing may be subject to restrictions outlined in the lease agreement or local policies. Once more, be sure to do your homework before jumping into a sublease.

So which one is it in the showdown of sublet vs sublease? Regardless of your choice, one place trumps either, and that’s Anyplace. We can help make the apartment rental process as quick and easy as 1-2-3 . It’s just like booking a hotel room—or even better.

Finding your “suite” spot with Anyplace

Whatever your needs and preferences, Anyplace can make your apartment search a walk in the park. With a user-friendly interface, a secure payment system, and a wide selection of properties, it’s a perfect option for your subletting or subleasing requirements.

Ready to explore? Browse our selection of flexible-term, fully furnished apartments in major cities across the USA. At Anyplace, you’re sure to find exactly what you’re looking for .

Where to next? Find monthly rentals designed for remote workers on Anyplace .

Landlord-Tenant Law

Real Estate Law
Business Law
Employment Law
Earl R. Wallace
Frank J. Coughlin
Richard Sontag
Kim-Thao T. Le
Dess K. Richardson
Steven E. Bolanos
Nicole A. Vettraino
Make A Payment

Assignment and Subletting

Disputes between and landlords and tenants often arise regarding assignment of a lease or subletting of the premises.

Difference Between Assignment and Subletting

The difference between an assignment of the lease and subletting of the premises is that with an assignment, the entire leasehold is transferred (i.e. the entire premises for the entire remaining term of the lease), whereas with a sublet, less than the entire leasehold is transferred.

Restrictions on Transfer

A landlord and tenant can validly agree to restrict transferability of leasehold interests by way of assignment, sublease, encumbrance or other voluntary or involuntary transfer. In most lease disputes relating to assignment or subletting, the tenant has assigned the lease or sublet the premises without the landlord’s prior written consent as required by a written lease or rental agreement. Under California law, when this situation arises, the landlord is generally entitled to terminate the tenancy upon three days prior written notice.

Sample Residential Lease Provision Prohibiting Assignment or Subletting

Tenant shall not sublet all or any portion of the Premises, or assign this Lease or any interest therein, without the prior written consent of Landlord which consent may be withheld, conditioned, or delayed in Landlord’s sole and absolute discretion. Unless such consent is obtained, any assignment, transfer or subletting of the Premises or this Lease or tenancy, by voluntary act of Tenant, operation of law or otherwise, shall constitute a default by Tenant under this Lease. Any proposed assignee, transferee, or subtenant shall submit to Landlord an application and credit information for Landlord’s approval and, if approved, sign a separate written agreement with Landlord and Tenant. Landlord’s consent to any one assignment, transfer or sublease, shall not be construed as consent to any subsequent assignment, transfer, or sublease and does not release Tenant of Tenant’s obligations under this Lease. Additionally, Tenant and any other occupants of the Premises shall not cause or permit the Premises, or any part of the Premises, to be offered for short-term rental including, without limitation, advertising any part of the Premises on Airbnb, VRBO, Craigslist, Couchsurfing, HomeAway, VacationRental, TripAdvisor, FlipKey or any other advertising or listing service.

Drafting and Review of Lease Documents
Enforcing the Terms of the Tenancy
Termination of Tenancy
Service of Notices
Recovery of Rent Actions
Modification, Extension, and Renewal of Lease Transactions
Waste, Fixtures or Options Disputes
Abandoned Personal Property
Security Deposit Disputes
Landlord Defense
Fair Housing Advice and Education
Affordable Housing Programs
Rent Control & Just Cause for Eviction
California Tenant Protection Act (AB 1482) – Rent Caps
California Tenant Protection Act (AB1482) – Just Cause for Eviction

Solid Legal Protection Without the Expense

Business Contracts
People and Relationship Contracts
Real Estate Contracts
Assignment of Benefit of Option to Purchase
Assignment of Lease Agreement
Commercial Property Lease
Commercial Lease – ACT
Commercial Lease – NSW
Commercial Lease – NT
Commercial Lease – QLD
Commercial Lease – SA
Commercial Lease – TAS
Commercial Lease – VIC
Commercial Lease – WA
Commercial Sublet Agreement
Do you need a Commercial or Retail Lease in South Australia?
Do you need a Commercial or Retail Lease Agreement in Victoria?
Manufacturing Area Licence Agreement
Option to Buy Real Estate
Shared Office Space Licence
Storage Space Licence
Vacant Commercial Land Lease
Variation of Lease
What is a Binding Financial Agreement?
Before Cohabitation or De Facto
During Cohabitation or De facto
After De Facto – Separation
Before Marriage – Prenuptial
During Marriage – Post Nuptial
After Marriage – Separation
Same Sex Cohabitation
Financial Agreement Legal Review Package
Child Support
Shared Parenting Plan Agreement
Western Australia De Facto Agreements
Casual Employment Contract
Employment Contracts in General
Contractor Agreement Value Pack
Employee Non Compete and Non Disclosure Agreement
Employee Onboarding Documents
Employee Performance Management Template and Guidelines
Fixed Term Contract
Full Time Agreement
Incorporated Contractor Services Agreement
Independent Sole Trader Contractors Agreements
Individual Flexibility Employment
Labour Hire Agreement
Management Services Agreement
My Growing Business Employment Contract Bundle
Permanent Part Time Employment Agreement
Recruitment Agency Agreement
Social Media Policy Template
Workplace Policy
Last Will and Testament Kit
Power of Attorney and Guardianship
Shareholder Buy Sell Agreement
Blog Legal Articles
Commercial Leasing Checklist
Free Stat Dec
Glossary of Legal Terms
Heads of Agreement
Legal Resources
Types of IP Agreements
Deed of Assignment of Intellectual Property Rights
Confidentiality Agreement – Non Disclosure Agreement
Employee Non Compete and Non Disclosure
Mutual Confidentiality Agreement
Intellectual Property Licence
Licence to use Copyright Material
Manufacturing and Development Rights Agreement
Trademark Licence Agreement
Associate Lease Agreement
Credit Application
Deed of release
Division 7A Company Loan
Indemnity Agreement
Instalment Agreement
Loan secured by Mortgage
Secured Loan Agreement
Simple Loan Agreement
Unsecured Loan Agreement with Caveat
Unsecured Loan Agreement with Guarantee
Co Ownership Agreement Aircraft / Boat / Marine Vessel
Deed of Appointment and Removal of Trustee
Discretionary Trust – Deed of Settlement
Joint Venture (JV) Agreement
Partnership Agreement (General)
Partnership Dissolution Agreement
Property Trust Unit Holders
Share Sale Agreement
Shareholders Agreement
Camper Trailer Rental
Car Parking Space Licence
Co Ownership Aircraft / Marine Vessel
Commercial Equipment Lease
Equipment Rental or Hire
Motor Vehicle Rental
Room Rental Agreement
Storage Space
Truck Rental Agreement
Agreement between Tenants in Common
Granny Flat Agreement
Residential Tenancy – ACT
Residential Tenancy -NT
Residential Tenancy – SA
Residential Tenancy – TAS
Residential Tenancy – WA
Share House Licence / Lodgers Agreement
Assignment of Lease
NSW Retail Tenancy Leasing Kit
Qld Retail Tenancy Leasing Kit
Retail (Commercial) Lease Victoria
Victorian Retail Tenancy Leasing Kit
Western Australia Retail Tenancy Lease
Agricultural Land Lease
Horse Agistment
Livestock Agistment Contract
Contract For Sale Of Business
Sale of Business Agreement on Vendor terms
Business Lease Agreement
Sale Of Website Agreement
Share Sale Agreement Template
Product Supply Agreement
Distribution Agreement
Event Release and Indemnity
Referral Agreement
Reseller Agreement
Sales Agency Agreement
Web Marketing Consultants Service Agreement
What is a Binding Financial Agreement (BFA)?
De Facto Separation Agreement
Divorce Settlement Agreement
Separation Agreement Template (Married)
Using a Separation Agreement Template in Australia
Superannuation Agreement
Child Support Agreement Pack inc Shared Parenting Plan
Shared Parenting Plan Template Agreement
Consulting Services
Contractor Value Pack
Exclusive Agency Agreement
Incorporated Contractor
Recruitment Agency
Sales Agency
Sole Trader Contractor
Web Marketing Consultants
About RP Emery
Check Out / Cart
FAQ’s
Members Area
RP Emery Refund Policy
Testimonials

The difference between assigning and subletting

Commercial Leasing
Contract Law
Estate Planning
Family and Personal Relationships
Financial Agreements
General Property and Leasing
Intellectual Property
Loans and Money
Marriage and De facto
Partnerships
Real Estate Investing
Rental of Things
Residential
Retail Leasing
Selling a Business
Superannuation
Commercial Lease - ACT
Commercial Lease - NSW
Commercial Lease - NT
Commercial Lease - QLD
Commercial Lease - SA
Commercial Lease - TAS
Commercial Lease - VIC
Commercial Lease - WA
After De Facto - Separation
Before Marriage - Prenuptial
During Marriage - Post Nuptial
After Marriage - Separation
Residential Tenancy - ACT
Residential Tenancy - SA
Residential Tenancy - TAS
Residential Tenancy - WA

“Assigning” and “subletting” may sound like interchangeable terms. But as we shall see, they are vastly different.

If you have space in your leased commercial premises (either all or part) that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.

Click to see Larger Version of the diagram

What is an assignment of lease?

Where a tenant decides they no longer wish to be bound by a lease, they can transfer all of their rights and obligations under the Lease to another, who then assumes the position of tenant.

Circumstances where an assignment may be used are:-

If the tenant needs to relocate to larger premises and no longer wish to be bound to the Lease. Assigning allows the tenant to avoid costs that would otherwise be payable for ending a Lease early;
If the tenant sells its business, so that the Lease is transferred into the name of the purchaser of the business;
If the tenant intends to close up shop, assigning the Lease to a new prospective tenant will allow the old tenant to avoid any break lease fees associated with terminating a Lease early.

In any case, an assignment cannot usually occur without the consent of the landlord.

The landlord will want to ensure that the prospective new tenant will be suitably qualified to meet the obligations under the commercial Lease, including financial obligations of rent and outgoings.

The main difference between assigning and subletting a Lease is that, on formalising the assignment with the necessary documentation (usually an Assignment of Lease), the existing tenant will be released of all of their rights and obligations under the Lease , from the date the lease is assigned. From that date, the new tenant takes on all rights and responsibilities under the Lease.

What is a sublease?

A Sublease enables a tenant who has spare space (either the whole or part of a premises) that is not being utilised to sublet that space to another.

Under a sublease, the existing tenant will continue to be named on the Lease, be bound to the Lease terms and liable to the landlord.

The Sublease is essentially an Agreement between the sublessee and the existing tenant. The existing tenant will still ultimately be responsible to the landlord, even for defaults of the sublessee, for example, non-payment of rent or damage to the premises.

The existing tenant will however, have rights of action against the sublessee personally, and may take action to recover any damages against the sublessee.

Should I sublease or assign?

Both subletting and assigning have advantages and disadvantages which must be weighed up in view of your own circumstances.

In many circumstances, the clean break from a Lease provided by an assignment may be preferential.

In other cases, a business may wish to retain control over the whole of the leased premises, while subletting individual offices or portions of space that are not being used at that time.

In any event, you must first refer to your written Lease Agreement to see whether the Lease gives the right to assign or sublet the tenancy and what procedures must be followed in order to achieve this.

Referring to the written terms of your Lease (what you have agreed with your landlord) may redefine your available options.

Generally, a landlord must not unreasonably refuse an assignment of lease, but may, at it’s absolute discretion refuse a sublease. However, this will ultimately depend on the wording or your own Lease and whether any legislation applies.

Legislation will apply if your Lease is for retail premises (premises involved in the retail sale of goods or services to the public). Retail lease legislation regulates retail leases and how and when a retail lease can be assigned, the procedure and the rights of the tenant and landlord (depending on your State). You should refer to the retail tenancies legislation in your State if this is the case.

For more information and resources:-

Landlords guide: what to do if your tenant wants to assign or sublease a commercial property.

Commercial Sublease Agreement Template Kit

Difference between a lease and licence

Pros and cons of subleasing a premises

Six bottom line issues to consider with commercial leases

Assignment of Lease Agreement Kit

Search our Properties

Select a department to start searching

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

As a commercial property tenant, you have a number of options during your tenancy. Sub-letting and assigning a commercial lease are just two of them. Whilst often mentioned in the same breath, the two processes are very different, and tenants should be aware of these variations before taking the step that suits their specific requirements.

As a leading commercial property estate agent serving landlords and tenants in Staffordshire, Cheshire and Shropshire, we help our clients cut through the legal jargon to understand and utilise the solutions that suit them. Here, we shine the spotlight on sub-letting and assignment so you can have a clearer understanding and subsequently rent with confidence.

Related Article: The Benefits of Investing in Commercial Property

Related Article: A How-To on Industrial Leasing

What is sub-letting?

A sub-let is arranged by the existing and original tenant, who (with the landlord’s approval) arranges for all or part of the commercial premises to be let to a third party. Sub-letting unlocks numerous benefits for the tenant, especially if they want to share the cost of renting a property. Even if the tenant chooses to sub-let however, they are still liable under the lease.

Another important difference between a sublease and an assignment relates to the fact that normally the sublease will be contracted outside of the ‘Landlord and Tenant Act 1954’, which removes the ‘security of tenure’ provisions from the sublease. This means that in the event that the head tenant vacates the building or ceases to trade the sub-tenant will lose their right of occupation and will be required to vacate as well. This is understandably slightly precarious from the subtenant’s point of view as the sub-tenant does not have the certainty of being able to remain in occupation indefinitely and, depending on the head tenant’s circumstances, may be required to vacate at short notice.

How is assignment different?

Assigning a commercial lease is the legal transfer of the lease to a third party. With assignment, the original tenant is not liable under the original lease, and responsibility is legally transferred as of the assignment date.

Unlike with sub-letting, when assigning a commercial lease, the original tenant does not share the property with the third party. This option is therefore more commonly used when a tenant has to sell their business and no longer has use for the commercial space they are legally bound to lease for the remaining period of their tenancy.

Do both options need a landlord’s consent?

Both sub-letting and assigning a commercial lease can only be done with the permission of the landlord or representing agent, a fact that will be stipulated in the lease itself. If the landlord objects to the sub-let or assignment, then they must do so on reasonable grounds. They are prohibited by law to withhold consent unreasonably.

When assigning the commercial lease, a vetting procedure (complete with credit checks) will usually be completed prior to formalising the arrangement with the associated documentation.

Is sub-letting or assignment right for me?

Whether to sub-let your commercial property or assign a commercial lease depends entirely on your circumstances. As previously mentioned, sub-letting is beneficial for tenants who have additional space within the commercial premises that they do not use. By sub-letting this unused space, tenants can recoup vital running costs and even improve the viability of their own business. With sub-letting, the original tenant remains the tenant and as ‘head tenant’ you will have various responsibilities.

A head tenant is essentially the landlord of the sub-tenant. The terms and conditions of the sub-let should, therefore, be formalised in writing with the landlord’s permission.

Assigning your commercial lease to a third party is a better option if you wish to terminate your tenancy before your agreement comes to an end and vacate the premises completely. This may be necessary if you have had to sell or relocate your business. With an assignment, you will have no responsibilities as the original tenant from the date of assignment. All obligations as set out in your original tenancy agreement will be transferred to the new tenant or ‘assignee’. To formalise the transfer, all parties must agree and sign a transfer of lease and deed of consent.

Final Words

As you navigate the options of sub-letting or assigning your commercial lease, understanding the distinct differences can empower you to make the right decision for your business. Our team at Rory Mack Associates specialises in guiding landlords and tenants through these complexities, ensuring clarity and confidence in every lease transaction.

For further information about sub-letting and assignment, please contact our dedicated team directly at 01782 715725 . Alternatively, you can email [email protected] to get in touch.

A How-To on Industrial Leasing
The Benefits of Investing in Commercial Property

COMMERCIAL PROPERTY

Residential property, professional services, rory mack associates.

Holly House, 37 Marsh Parade Newcastle-under-Lyme, Staffordshire, ST5 1BT

01782 715725 [email protected] Mon-Fri: 9am – 5:30pm

Debate Fact Check: Harris and Trump on the Economy, Immigration and Abortion

The 2024 presidential candidates clashed on their records and their visions for the country’s future in a high-stakes debate.

By The New York Times

Share full article

Luke Broadwater

“I had nothing to do” with Jan. 6

— Former President Donald J. Trump

Trump and his allies spread lies for months about vast fraud that they falsely claimed stole the 2020 election from him. His supporters then organized a large rally near the White House designed to pressure Congress to overturn his loss. Trump encouraged the crowd to attend, promising it would be “wild.” He urged his supporters to march to the Capitol, where the rally turned into a violent riot that injured about 150 police officers. He faces federal felony charges of plotting to overturn the 2020 election and similar charges in Georgia.

Sheryl Gay Stolberg

“Now she wants to do transgender operations on illegal aliens that are in prison.”

This needs context..

Trump is referring to Harris’s response to a 2019 American Civil Liberties Union questionnaire , in which she said she supported using taxpayer funds to give access to gender-affirming care to transgender and nonbinary people, including those in immigration detention and prison.

CNN reported on the survey earlier this week, in a segment that drew sharp criticism from supporters of gay, lesbian and transgender people. The survey asked: “As president, will you use your executive authority to ensure that transgender and nonbinary people who rely on the state for medical care — including those in prison and immigration detention — will have access to comprehensive treatment associated with gender transition, including all necessary surgical care? If yes, how will you do so?”

Harris answered yes, writing, “It is important that transgender individuals who rely on the state for care receive the treatment they need, which includes access to treatment associated with gender transition. That’s why, as attorney general, I pushed the California Department of Corrections and Rehabilitation to provide gender transition surgery to state inmates. I support policies ensuring that federal prisoners and detainees are able to obtain medically necessary care for gender transition, including surgical care, while incarcerated or detained. Transition treatment is a medical necessity, and I will direct all federal agencies responsible for providing essential medical care to deliver transition treatment.”

In an interview on Tuesday morning on Fox News, Michael Tyler, Harris’s campaign communications director, sought to distance Harris from the statement without disavowing it. “That questionnaire is not what she is proposing or running on,” Tyler said.

Hamed Aleaziz

“In Springfield, they’re eating the dogs. The people that came in, they’re eating the cats. They’re eating — they’re eating the pets of the people that live there.”

A spokeswoman for the city of Springfield, Ohio, said this week that despite viral social media posts that have been promoted by Trump and his supporters, “there have been no credible reports or specific claims of pets being harmed, injured or abused by individuals within the immigrant community.” A Clark County, Ohio, official said that they “have absolutely no evidence of this happening.”

Alexandra Berzon

“A lot of these illegal immigrants coming in —” Democrats are “trying to get them to vote.”

This lacks evidence..

In recent months, Trump and other Republicans have frequently made the false claim that there’s a major crisis of noncitizens illegally voting in federal elections . They often claim, with no evidence, that Democrats are trying to get undocumented immigrants to vote in order to cheat their way to electoral victory.

In fact, people who are not U.S. citizens already face fines or imprisonment for voting in federal elections under a 1996 law. And experts point to data indicating that cases of noncitizens voting are rare and nowhere near the threshold to sway an election. Instance of undocumented people doing so are even rarer . Registrants to vote have to swear under penalty of perjury that they are citizens, and some states check for citizenship against federal databases.

Organizations including the left-leaning Brennan Center , the conservative Heritage Foundation and the libertarian Cato Institute that have examined the legal system, registration records or election offices for cases of citizenship fraud have found very few examples.

Jeanna Smialek

“We have inflation like very few people have ever seen before. Probably the worst in our nation’s history: We were at 21 percent.”

Inflation was higher by standard measures during the late 1970s and early 1980s. The Consumer Price Index peaked at 9.1 percent in 2022, less than in that earlier episode. Analysts will sometimes argue that if one adjusts for a methodological change to how housing is measured, recent inflation has rivaled that episode, which may be what Trump is referencing. In any case, it is not true that America’s recent inflation episode is the world leader, as one can see by looking at international data

“All I can say is I read where she was not Black. That she put out. And I’ll say that and then I read that she was Black, and that’s OK. Either one was OK with me.”

It’s unclear what Trump read, but Vice President Kamala Harris has always identified as Black and South Asian during her time in public office. Harris wrote in her 2019 memoir that “my mother understood very well that she was raising two Black daughters.”

Harris joined Alpha Kappa Alpha, a sorority for Black women , at Howard University, a historically Black university. She was also the president of the Black Law Students Association at the University of California Hastings College of the Law. A 1999 Los Angeles Times article mentioning Harris, then an assistant district attorney in San Francisco, referred to her as a “liberal African American” prosecutor, and a 2000 San Francisco Examiner article called Harris a leader in the city’s Black community.

She first ran for public office in 2002 for San Francisco district attorney and, when she won her race, became the state’s first Black district attorney. She appeared on a panel as an emerging leader in the Black community in a 2006 conference. And in a 2009 speech to a Los Angeles-area high school about Black history, Harris spoke of her personal history as intertwined with that of the civil rights movement, alluding to how her parents “organized” in the streets during the 1960s.

Michael Crowley

“As of today, there is not one member of the United States military who is in active duty in a combat zone, in any war zone around the world, for the first time this century.”

— Vice President Kamala Harris

No U.S. troops are fighting in an all-out war like the ones in Iraq and Afghanistan. But thousands of American troops have become entangled in hostilities around the Middle East since the Oct. 7 Hamas attacks.

President Biden has deployed numerous warships and fighter jets to Israel’s coast, and U.S. forces have intercepted Iranian missiles and drones fired at Israel. They have also launched dozens of airstrikes against Yemen’s Houthi militants. American forces have also suffered casualties: Three U.S. service members based in Jordan were killed in January by an attack drone, and two Navy Seals drowned earlier in February during anti-Houthi operations. Iranian-backed militias have also repeatedly attacked U.S. forces stationed in Iraq and Syria, causing multiple injuries.

Zolan Kanno-Youngs

“Crime here is up and through the roof.”

The claim is factually incorrect. While there was an increase in crime during the pandemic, various studies have shown violent crime has now dropped to the lowest level in decades. Despite public perception of lawlessness, violent crime was higher in 2020 under Mr. Trump than under President Biden so far. The violent crime rate was 380.7 per 100,000 people in 2022, according to police agencies’ data gathered by the F.B.I. That was a lower rate than in all but three years — 2013, 2014 and 2015 — since 1985. Preliminary analysis from the F.B.I. suggested that violent crime decreased 15.2 percent in the first quarter of 2024 from the same period in 2023 , with an even greater drop of 18 percent in cities with more than one million people. Still, some studies have found that shoplifting and motor vehicle theft increased in 2023.

Kate Zernike

“Her vice-presidential pick says abortion in the ninth month is absolutely fine. He also says execution after birth. It’s execution, no longer abortion, because the baby is born is, OK, and that’s not OK with me.”

Abortion terminates a pregnancy, so “abortion after birth” is a contradiction. Killing a child after birth is infanticide, which is illegal in all 50 states. Vice President Kamala Harris has said she wants to restore the abortion rights established in Roe v. Wade. Roe, the 1973 Supreme Court decision overturned in 2022, allowed states to prohibit abortion in the third trimester — the seventh, eighth and ninth months of pregnancy — so long as they made exceptions to save the health and life of the mother. “Late term” is defined as 41 weeks, or just beyond nine months. According to federal data , less than 1 percent of all abortions take place after the 20th week of pregnancy; 93 percent are at or before 13 weeks. Minnesota, where the Democrat vice-presidential nominee, Tim Walz, is governor, is one of the few states to allow abortion at any stage of pregnancy . But allowing abortions at that stage does not mean that doctors perform them. State data for 2022 , the most recent available, shows that of the 12,175 abortions in the state that year, only two happened between 25 and 30 weeks of pregnancy, and none after the 30th week of pregnancy, which is roughly the start of the third trimester.

Ben Protess

“Every one of those cases was started by them against their political opponent.”

Trump’s claims that the Biden administration orchestrated his four criminal cases , including the one in Manhattan that led to his conviction in May on charges of falsifying records to cover up a sex scandal, has no basis in fact.

The Manhattan investigation began while Trump, not President Biden, was in office. The case was brought by the district attorney, Alvin L. Bragg, a local Democrat who does not answer to Biden or Vice President Kamala Harris. The same goes for Trump’s criminal case in Georgia, where a district attorney accused him of trying to overturn the 2020 election results in that state. And Trump’s two federal cases were brought by a special counsel, a semi-independent prosecutor who is accountable to the attorney general. While the attorney general is chosen by the president, the White House has no direct influence over the special counsel.

All of Trump’s legal challenges to the outcome of the 2020 election were dismissed on “technicalities” or the basis of “standing.”

This is false..

While some of the challenges to the last election were rejected on the basis of standing — that is, on the issue of whether the plaintiffs had the legal right to question the results and assert they had been harmed — there were some cases that were decided on the merits of whether there were improprieties in the race. And none of those cases were decided in Mr. Trump’s favor. One of the merits cases was decided in Wisconsin by Brett H. Ludwig, a federal judge appointed by Mr. Trump. “This court has allowed the plaintiff the chance to make his case,” Judge Ludwig wrote in his ruling, “and he has lost on the merits.”

Julian E. Barnes

“Putin endorsed her last week, said, ‘I hope she wins.’”

This is misleading..

Most observers believe that Vladimir V. Putin’s comments on Sept. 5 that he supported Vice President Kamala Harris were said in jest. The U.S. intelligence agencies have assessed that Putin supports the election of Trump. Documents released as part of an indictment against two employees of the Russian state broadcaster show the Kremlin developed a plan to influence swing state voters in favor of Trump. The Kremlin believes Trump will cut back, or end, U.S. military aid to Ukraine. While Trump has claimed that the invasion of Ukraine would not have taken place if he were president, there is little evidence that he would have taken action to deter Russia.

Helene Cooper

“They sent her in to negotiate with Zelensky and Putin, and she did, and the war started three days later.”

The vice president traveled to the Munich Security Conference in February 2022, in the days before Russia’s invasion of Ukraine that month. President Volodymyr Zelensky of Ukraine was there, and Harris met with him. Putin was not present.

Margot Sanger-Katz

“When Donald Trump was president, 60 times he tried to get rid of the Affordable Care Act — 60 times.”

As president, Trump did try to get rid of the Affordable Care Act, urging Republicans in Congress in 2017 to pass several bills to repeal and replace major portions of it. Those efforts were ultimately unsuccessful. Republicans in Congress had voted many times since the health law was enacted in 2010 to fully repeal or substantially modify Obamacare. Most of those attempts predated Trump’s presidency. Various analysts have tallied those efforts at 70 , or even 100 . But those very high counts include even proposed changes to the landmark legislation that were relatively minor — and some that had bipartisan support. Most failed to become law.

“I had a choice to make” on Obamacare. “Do I save it and make it as good as it can be? Or do I let it rot? And I saved it. I did the right thing.”

Trump did not “save” the health insurance law known as Obamacare; the United States Senate did, in defiance of him. During his first year in office, Trump asked Congress to pass legislation repealing the Affordable Care Act, the 2010 law that created the program. The Republican-controlled House approved the bill. But in a dramatic moment on Capitol Hill, Senator John McCain, the Arizona Republican and nemesis of Trump, cast the decisive vote to defeat the proposal, just days after returning to the Senate after receiving a diagnosis of brain cancer. The vote was a surprise to Trump; he had cheered McCain’s return to Washington in a social media post calling the Arizona senator “brave” and a “hero,” apparently believing that he had come back to Congress to help kill — not save — Obamacare.

Andrew Duehren

“Over the last four years, we have invested $1 trillion in a clean energy economy.”

The current administration has facilitated a burst of private investment because of tax credits and other incentives included in the Inflation Reduction Act passed in 2022. According to the Clean Investment Monitor, which tracks investments, clean energy investment since 2021 has totaled roughly $700 billion. Some experts expect the clean energy incentives to eventually help drive more than $1 trillion in private investment.

“Donald Trump, the candidate, has said in this election there will be a blood bath if this, and the outcome of this election, is not to his liking.”

Harris is correct that Trump warned of a “blood bath” if he did not win the 2024 election, but Trump has contended that he was speaking about an economic blood bath and was focused on competition from Chinese electric vehicles.

Here is the full quote of what Trump said at rally in March, so readers can decide for themselves.

“If you’re listening, President Xi, and you and I are friends, but he understands the way I deal, those big monster car manufacturing plants that you’re building in Mexico right now, and you think you’re going to get that, you’re going to not hire Americans and you’re going to sell the cars to us, we’re going to put a 100 percent tariff on every single car that comes across the line, and you’re not going to be able to sell those cars if I get elected,” he said.

“Now, if I don’t get elected, it’s going to be a blood bath. That’s going to be the least of it. It’s going to be a blood bath for the country. That’ll be the least of it. But they’re not going to sell those cars,” he continued.

“We have millions of people pouring into our country from prisons and jails, from mental institutions and insane asylums.”

Immigration experts have said they could not corroborate Mr. Trump’s claims . The Trump campaign has previously cited a September 2022 article in Breitbart, a conservative website. One unnamed source told Breitbart that officials believed an unspecified number of Venezuelan prison inmates were headed for the United States’ southern border with Mexico. (No other news organization or government source has verified this report.)

The campaign also pointed to reports warning that Tren de Aragua, a transnational criminal gang founded in Venezuela, was growing in the United States. But none of this is evidence that “millions” of criminals are infiltrating the southern border.

Customs and Border Protection reported apprehending 47 members of Tren de Aragua along the southern border under Mr. Biden. Prison populations all over the world have been increasing, not decreasing. Penal Reform International, a Netherlands-based nonprofit, estimated that the global prison population was a record 11.5 million in 2023 , an increase of 500,000 people since 2020 .

“For years we were paying almost all of NATO. We were being ripped off by European nations, both on trade and on NATO. I got them to pay up.”

Trump incorrectly characterizes the North Atlantic Treaty Organization. Member countries make direct contributions to the organization, based on national income, and also agree to spend at least 2 percent of their gross domestic product on their own defense.

Trump’s complaints led to NATO reducing the United States’ contribution to the common fund. Previously the United States paid about 22 percent of its central budget, and it dropped to 16 percent. And the number of countries meeting that 2 percent guideline increased to 10 from five in recent years.

Trump can claim some credit for increased spending, but it’s worth noting that countries pledged in 2014 to meet that goal within a decade.

Jim Tankersley

“The Trump administration resulted in a trade deficit — one of the highest we’ve ever seen in the history of America.”

In 2020, at the end of Donald J. Trump’s tenure in office, the trade deficit — the difference between how much the United States imports and how much it exports — was about $650 billion. That was lower than four years of the George W. Bush administration, and the first three years of the Biden-Harris administration.

Brad Plumer

“We had the largest increase in domestic oil production in history, because of an approach that recognizes that we cannot over-rely on foreign oil.”

U.S. crude oil production has indeed risen to record highs this year , though experts say that has little to do with actions taken by the Biden administration. Most oil production has occurred on private and state lands, where the federal government has little oversight. At times, President Biden has actually tried to restrict drilling on federal lands and waters in the name of tackling climate change, but the courts have frequently limited his ability to do so .

Lisa Friedman

Biden “ended the XL pipeline, the XL pipeline in our country. He ended that.”

On his first day in office, President Biden rescinded the construction permit for the Keystone XL oil pipeline , which would have transported carbon-heavy oil from the Canadian oil sands to the Gulf Coast. That same day, the sponsor of the project, TC Energy, a Canadian company, said that it was suspending work on the line.

Trump had revived the project after it stalled under the Obama administration, but it continued to face legal challenges that hampered construction. Opponents had fought the project for years over concerns that burning oil sands crude could make climate change worse and harder to reverse.

I “have built it into many, many billions of dollars; many, many billions.”

This is exaggerated..

Trump habitually exaggerates his wealth, so much so that the New York attorney general’s office sued him for fraudulently inflating his net worth, a case that led to a more than $450 million judgment against him .

In reality, he has about $400 million in cash, stocks and bonds, though if the New York case is upheld on appeal, it will essentially wipe out his liquid assets.

Much of his purported net worth is tied up in the real estate he owns. So when Trump says he is worth many billions, he appears to be referring to the value of that property. But property values fluctuate, and there is no reliable assessment of his assets. He also has a roughly $2 billion stake in his social media company, though he can’t yet access those shares and their value has plummeted in recent months.

“She wouldn’t even meet with Netanyahu when he went to Congress to make a very important speech. She refused to be there because she was at a sorority party of hers.”

It is true that when Prime Minister Benjamin Netanyahu of Israel addressed Congress on July 19, Vice President Kamala Harris did not attend the speech. On that day she delivered a long-planned speech in Indiana to the national conference for Zeta Phi Beta, one of the country’s historically Black sororities. But Harris returned to Washington the next day for a meeting with Netanyahu .

“And when she ran, she was the first one to leave because she failed” in the 2020 Democratic presidential primary.

Harris dropped out of the Democratic primary in December 2019 , which came as a surprise given expectations surrounding her candidacy. But her exit was preceded by more than a dozen others , including prominent members of Congress, former and sitting governors and the mayor of New York City.

“She went out in Minnesota and wanted to let criminals that killed people, that burned down Minneapolis.”

After the murder of George Floyd in Minneapolis and the protests that ensued, Vice President Kamala Harris posted on social media in June 2020 asking supporters “to help post bail for those protesting on the ground in Minnesota” by donating to the Minnesota Freedom Fund, a bail fund.

The fund used some of those money to bail out people who committed serious crimes. But Ms. Harris did not specifically call to release murderers from behind bars.

Michael D. Shear

“Remember that she was the border czar. She doesn’t want to be called the border czar because she’s embarrassed by the border.”

Harris was never appointed “border czar,” nor was she tasked with addressing border security. Rather, she had a role in addressing the root causes of migration in Central American countries. Moreover, she did visit the border in June 2021, where she toured an immigration facility in El Paso.

“By the way, Joe Biden was found essentially guilty on the documents case.”

A special counsel, Robert K. Hur, was appointed by Attorney General Merrick B. Garland to determine whether there was sufficient evidence to prosecute President Biden after his aides reported that classified documents from his time as vice president had been found in his possession. Hur spent months investigating Biden and in February issued a report in which he declined to bring charges against Biden for a number of reasons. Among them was that Biden, unlike Trump, cooperated with the federal inquiry into his handling of classified documents.

Elizabeth Dias

“And as far as the abortion ban, no, I’m not in favor of abortion ban.”

Trump privately expressed support for a 16-week abortion ban earlier this year, although he later reviewed polling suggesting it was problematic, and did not support it. His allies, including former Trump administration officials, have also planned new sweeping abortion restrictions that do not require a national ban passed by Congress. One plan includes enforcing a long-dormant law from 1873, called the Comstock Act , to criminalize the shipping of any materials used in an abortion — including the medication used in the majority of abortions in America.

“Fracking? She’s been against it for 12 years.”

During her first presidential campaign in 2019, Harris endorsed a ban on hydraulic fracturing, or fracking , a process used to extract oil and natural gas from bedrock. She also challenged federal approvals of offshore fracking when she was attorney general of California. When she became President Biden’s running mate in 2020, she distanced herself from that position, and now says she no longer supports a ban on fracking.

“We made ventilators for the entire world.”

Early in the pandemic, the Trump administration was criticized for a shortage of ventilators . In March 2020, Trump’s son-in-law, Jared Kushner, was put in charge of an effort to ramp up production. Trump later announced a plan to make the United States the “king of ventilators” by donating them to other countries. But ProPublica reported that while White House officials had pushed the U.S. Agency for International Development to purchase thousands of ventilators and donate them abroad, the effort was “marked by dysfunction.”

In the end, the ventilators weren’t needed. By May 2020, doctors began using ventilators only as a last resort, after observing unusually high death rates for Covid-19 patients who were put on the devices. The Associated Press quoted Daniel Edelman, a professor at the University of Chicago Booth School of Business, as saying the Trump administration was buying more than twice the number of ventilators it needed.

“People give me credit for rebuilding the military.”

Trump’s allies often repeat his talking point that he “rebuilt” the military. He did increase the defense budget during his four years in office, by around $225 billion. But he also promised to build a 350-ship Navy and to expand the Army. He did neither. The Army today is at its smallest size since 1940. The year Mr. Trump left office, the Navy was down to 294 ships. Efforts to expand the number of Air Force squadrons received no presidential push and went nowhere.

“I have nothing to do with Project 2025.”

Project 2025, a set of conservative policy proposals assembled by a Washington think tank for a Republican presidential administration, does not directly come from Trump or his campaign. Still, CNN documented that 140 people who worked for the Trump administration had a role in Project 2025. Some were top advisers to Trump in his first term and are all but certain to step into prominent posts should he win a second term.

Trump has also supported some of the proposals, with some overlap between Project 2025 and his own campaign plans. Among the similarities: undercutting the independence of the Justice Department and pressing to end diversity, equity and inclusion programs. And he enacted other initiatives mentioned in Project 2025 in his first term, such as levying tariffs on China and making it easier to fire federal workers. Trump has criticized some elements as “absolutely ridiculous and abysmal,” though he has not specified which proposals he opposes.

When the director of the project departed the think tank, Trump’s campaign released a statement that said, “Reports of Project 2025’s demise would be greatly welcomed and should serve as notice to anyone or any group trying to misrepresent their influence with President Trump and his campaign — it will not end well for you.”

“We handed them over a country where the economy and with — the stock market was higher than it was before the pandemic came in. Nobody’s ever seen anything like it.”

The economy grew at a fairly normal pace in the United States in the years leading up to the pandemic, and while the stock market did touch new highs under Trump’s watch, that is typically the case during a presidency: Historically, stock prices tend to climb over time. Stocks have traced new highs under the Biden administration, as measured by the S&P 500 index .

“Every legal scholar — every Democrat, every Republican, liberal, conservative — they all wanted” abortion policy “to be brought back to the states.”

Some conservative legal scholars asked the Supreme Court to overturn Roe v. Wade, the 1973 decision that identified a right to abortion in the Constitution. They said state legislators, not unelected justices, should set abortion policy. But many legal scholars also filed briefs urging the court not to do so, arguing that the original decision had been on solid legal ground and that overturning federal protection for abortion would disastrously reverse five decades of precedent.

Immigrants are “coming in and they’re taking jobs that are occupied right now by African Americans.”

Various economists have found that immigrants are a crucial part of the U.S. labor force and that their presence has been healthy for the nation’s economy. The population of foreign-born workers is also not large enough to offset job creation over the past three years. A few studies have indeed shown negative wage effects, particularly on Black workers and other Americans in occupations in which there are many immigrants. But while this dynamic has been debated for decades, there is no clear conclusion.

Several studies have, however, found a mutually beneficial relationship between high-skilled immigrants and similarly skilled U.S.-born workers, as well as between low-skilled immigrants and more highly skilled U.S.-born workers, contributes to higher wages for natives. Economists also have found immigrants are especially important as more Americans age and leave the labor force.

Immigrants are “taking over the towns. They’re taking over buildings. They’re going in violently.”

The claim is factually incorrect. The former president was referring to towns in Ohio and Colorado that have seen large influxes of immigrants, most of whom came into the United States legally, often with work permits. There have been examples of crime in those cities, but the vast majority of the immigrants have been working and paying taxes. In Springfield, Ohio, for example, thousands of Haitian immigrants have helped fill jobs as the city recovered from steep economic decline, but their presence has divided the town politically. A traffic accident caused by a Haitian immigrant has roiled the city, but there has not been widespread violence, and many in the city support the Haitian migrants as an important part of the economy.

“She’s a Marxist. Everybody knows she’s a Marxist.”

Marxism refers to the political, social and economics theories of Karl Marx, practiced as socialism or communism. Ms. Harris’s campaign has described her as a capitalist . She has not proposed to seize the means of production. And she has received the backing of more than 80 chief executives , some of whom have called her “pro-business.”

“The only jobs they got were bounce-back jobs.”

Trump claimed that the only jobs created under the Biden-Harris administration were from recovering jobs that were lost under Trump amid the pandemic recession. In fact, under the Biden administration, the American economy has regained all the jobs it lost from before the pandemic and created nearly 6.5 million additional jobs on top of that.

“Donald Trump left us the worst unemployment since the Great Depression.”

Unemployment spiked to its worst levels since the Great Depression in the pandemic recession of 2020, but it was 6.4 percent the month Trump left office . That’s nowhere near the worst rate since the Depression.

Shawn Hubler

“This business about taking everyone’s guns away — Tim Walz and I are both gun owners.”

This is true..

A career prosecutor in California before she ran for the U.S. Senate, Harris has long said that she owns a handgun. “I am a gun owner, and I own a gun for probably the reason a lot of people do — for personal safety,” she told reporter s outside a campaign event in Iowa during her run for the White House in 2019.

Although she has long called for universal background checks, a ban on assault-style weapons and other controls, she has not called for seizing legally purchased firearms. Gov. Tim Walz of Minnesota, her running mate, is an Army veteran and a hunter who was endorsed by the National Rifle Association until he began supporting tighter firearm restrictions after a teenage gunman opened fire at a Florida high school in 2018.

“I was a better shot than most Republicans in Congress and I have the trophies to prove it,” he said. “But I’m also a dad. I believe in the Second Amendment, but I also believe that our first responsibility is to keep our kids safe.”

“He lost manufacturing jobs.”

The United States had lost nearly 200,000 factory jobs at the end of Donald Trump’s presidency compared with when Trump took office. Those losses were largely a product of the pandemic recession.

“We have created over 800,000 new manufacturing jobs.”

Since President Biden took office, seasonally adjusted manufacturing employment has increased by 739,000 jobs. Previous estimates put that increase above 800,000, but that number fell after the Labor Department issued an annual revision to its jobs numbers last month.

IMAGES

Subletting vs. Assigning a Commercial Lease
Difference between assigning subletting lease subleasing
Assignment vs Subletting
Difference Between Assigning a Residential Lease and Subletting
LEASE-Difference Between Subletting and Assigning
Subletting and Assignment of Lease: What is the Difference?

VIDEO

Basic construction materials Unit 7 #Week 4 #NPTEL #ASSIGNMENT ANSWERS #2024 #@MADHU_REDDY.1922
Commercial Leasing Basics: Assignment & Subletting
Week 11 assignment basic construction materials NPTEL(2024)
Construction Engineering : Individual Assignment
Mastering Real Estate: The Differences Between Assignment and Back-to-Back Closing!
Basic construction materials #Week 5 #assignment answers #NPTEL#2024 @MADHU_REDDY.1922

COMMENTS

Assignment vs Subletting
Key Differences: Transfer of Responsibility: Assigning a lease completely transfers the tenant's interest to a new tenant, while subletting involves the original tenant retaining some rights and responsibilities. Direct Relationship: In assignment, the new tenant has a direct relationship with the landlord, whereas in subletting, the original ...
Sublease vs Assignment of Lease
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.
Assignment vs. Subletting: What's the Difference?
Most, if not all, commercial leases contain Assignment and Sublease provisions and while the specific language and conditions can vary there are general, shared principles. Subletting and assigning are similar in that they both involve a transfer of the tenant's right or interest in the lease that allow another (3 rd) party to occupy the ...
What Is the Difference Between Subletting and Assigning?
assignments transfer your entire interest in the property and usually releases you from your obligations; subleases do not release you from your obligations and allow you to transfer part of your interest in the property and retain your entire interest; in both cases, your lease will set out when and how you can assign or sublet.
What is the Difference Between Sub-letting and Assigning a Lease?
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 ...
What's the Difference Between Subleasing and Assigning a Lease?
Lease assignment and subleasing a rental unit — whether residential or commercial — can both help you make some extra money from your unused rental property. But one is much more permanent than the other. Learn which option best suits your needs and situation by understanding the difference between subletting and assigning a lease.
Assignment vs. Sublease: Difference and Comparison
9. Another essential difference between an assignment and a sublease lies in their durations. Assignments typically last for the remainder of the lease term, meaning the new tenant steps into the shoes of the original tenant until the lease ends. A sublease, however, often has a set duration, which could be shorter than the remaining lease term.
The Difference Between Subletting and Assigning a Lease
If you need to exit your lease before the agreed-upon date, it is crucial to know your options. Understanding the distinction between subletting and assigning your lease is vital, as it affects your obligations to the landlord. This article will explain the differences between subletting and lease assignment, helping you make an informed decision.
Assignment vs. Sublease: What's the Difference?
A sublease also creates a second lease on the property - the landlord rents to the tenant, who in turn rents to the new tenant. The new tenant pays rent to the original tenant, and the original tenant pays rent to the landlord as before. Whether you are considering an assignment or sublease, it's important to remember two important things ...
What is the Difference Between an Assignment and a Sublease?
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 ...
Pros and Cons in Subletting, Designation, Assignment ...
An assignment is not a subletting, and vice versa. The underlying considerations are not the same. By assignment, the new occupant - the assignee - becomes the tenant itself. Hence, assignment is making over or transference to another the whole or part of the contract, any obligation, benefit or interest that may be derived under the contract.
Assignment, novation and construction contracts
Both assignment and novation are forms of transferring an interest under a contract from one party to another. However, they are very different and in their effect. An assignment transfers the benefit of a contract from one party to another, but only the benefit, not the burden. In contrast, a novation will transfer both the benefit and the ...
Sublet vs. assignment—what's the difference?
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 ...
Assignment vs subletting: Do you care which you use? Why?
From time to time, clients ask counsel and brokers about the pros and cons of using an assignment versus a sublease to effect a transfer of possession and a transfer of obligations with respect to leased premises. With about equal frequency, questions come up regarding the differences between assignments and subleases, and 'whether those ...
Subletting vs Subleasing: Understand the Differences and ...
So, in a way, a sublease is more permanent than a sublet. Benefits and Drawbacks . Now, let's consider the perks and downsides of each. First up: subletting. Pros of Subletting: 1. Flexibility Galore. Subletting offers oodles of flexibility for both the original tenant and the sublessee, allowing for shorter stays.
Assignment and Subletting
The difference between an assignment of the lease and subletting of the premises is that with an assignment, the entire leasehold is transferred (i.e. the entire premises for the entire remaining term of the lease), whereas with a sublet, less than the entire leasehold is transferred. Restrictions on Transfer. A landlord and tenant can validly ...
Difference between assigning subletting lease subleasing
The main difference between assigning and subletting a Lease is that, on formalising the assignment with the necessary documentation (usually an Assignment of Lease), the existing tenant will be released of all of their rights and obligations under the Lease, from the date the lease is assigned. From that date, the new tenant takes on all ...
Subletting vs Subleasing: What Is the Difference?
Sublet vs. Sublease: What Are the Key Differences? Many people think that the terms "sublet" and "sublease" have the same meaning, but this is not the case. Let's discuss the crucial differences between how these types of lease agreements work. Landlord Involvement. In a sublet, the new tenant has direct contact with the landlord.
PDF Subletting and Assignment
Subletting and Assignment. At this Town Hall Meeting we will: Learn what subletting and assignment are and the differences between them; Discuss how the landlord is impacted in situations involving a sublet or assignment; Discuss the rules established under the Residential Tenancies Act: To examine the specific rules for assignment; and.
Difference Between Lease Assignment & Lease Subletting
As of 2012, a typical assignment fee for a commercial lease is $500. Although a primary tenant is usually required to obtain a landlord's permission before creating a subletting agreement, the terms of this this agreement are worked out between the primary tenant and the subletter, without the involvement of the landlord,
Subleases and Assignments by Tenants & Related Legal Concerns
While assignments are often discussed together with subleases, they should not be confused. An assignment transfers the rest of your lease to a new tenant, and it usually happens when you want to move out before the lease is over. While a sublease makes you the landlord of the subtenant, an assignment makes the assignee a tenant of your landlord.
What is the Difference Between Sub-letting and Assigning a Commercial
Another important difference between a sublease and an assignment relates to the fact that normally the sublease will be contracted outside of the 'Landlord and Tenant Act 1954', which removes the 'security of tenure' provisions from the sublease. ... How is assignment different? Assigning a commercial lease is the legal transfer of the ...
Debate Fact Check: Harris and Trump on the Economy, Immigration and
In 2020, at the end of Donald J. Trump's tenure in office, the trade deficit — the difference between how much the United States imports and how much it exports — was about $650 billion.

We're Here to Help