National Real Estate Exam (PSI)ContractsMedium
A commercial lease is silent regarding assignment. The tenant wants to assign the remaining lease term to a third party without asking the landlord. Is this assignment valid?
- AYes, but only if the landlord is notified in writing beforehand
- BNo, only residential leases can be assigned without consent
- CNo, all leases require landlord consent to assign regardless of lease terms
- DYes, leases are generally assignable unless the lease specifically prohibits or restricts it
Show answer & explanationAnswer & explanation
Correct answer: D. Yes, leases are generally assignable unless the lease specifically prohibits or restricts it
Absent a lease provision restricting or prohibiting assignment, a tenant generally has the right to assign their leasehold interest. Many leases include clauses requiring landlord consent, but without such language, assignment is presumed permissible.
Why the other options are wrong
- A. Notification is not automatically required unless specified in the lease.
- B. This distinction does not exist in general contract/lease law.
- C. This is only true if the lease specifically requires consent, not as a general rule.
Lease Assignment
The transfer of a tenant's entire remaining leasehold interest to a third party, who then becomes primarily responsible for lease obligations.
- Default rule: leases are assignable unless prohibited
- Original tenant may remain secondarily liable unless released
- Different from subletting, which transfers only part of the interest/term
- Landlords often add consent clauses to control assignments
Memory trick: Silent lease = Sail freely, unless a wall (restriction clause) blocks it