Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementHard
A Florida real estate broker is managing a property with multiple units. The lease agreement for one tenant is silent regarding whether the tenant can assign or sublet the premises. The tenant approaches the broker requesting to sublet their unit for six months. What is the broker's proper course of action in this situation?
- AAdvise the tenant that they have an automatic right to sublet because the lease is silent on the matter.
- BInform the tenant that without explicit permission in the lease, subletting is prohibited.
- CSeek clarification from the property owner regarding their policy on subletting and assignment.
- DApprove the sublet, provided the new subtenant meets the standard background and credit checks.
Show answer & explanationAnswer & explanation
Correct answer: C. Seek clarification from the property owner regarding their policy on subletting and assignment.
When a lease is silent on assignment or subletting, the general legal principle (though varying by jurisdiction) is that such rights are usually implied, but the broker's primary duty is to the owner. Therefore, the broker must consult the owner for their decision and guidance, as the broker acts as the owner's agent.
Why the other options are wrong
- A. While common law often implies this right when silent, a broker cannot give legal advice or make such a determination without consulting the owner.
- B. This is generally incorrect; silence usually implies permission, not prohibition, but the broker's role is to confirm with the owner.
- D. The broker cannot unilaterally approve a sublet without the owner's explicit permission, regardless of the subtenant's qualifications.
Lease Silence on Subletting/Assignment
When a lease is silent on a tenant's right to assign or sublet, the property manager (broker) must consult the property owner for direction, as the broker acts as the owner's agent.
- Silence typically implies right to assign/sublet (common law).
- Broker's duty is to owner (principal).
- Broker must seek owner's instruction.
- Broker cannot give legal advice on tenant's rights.
Memory trick: When the lease is mute, consult the owner for the route.